Extra Space Storage Inc. stock research
FY2026 Q1
Extra Space Storage (EXR) Gross Margin — Quarter Ended Mar 31, 2026
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Gross profit was negative and cost of revenue exceeded revenue, resulting in a deeply negative gross margin that weakened sequentially but improved year-over-year.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Gross profit was negative and cost of revenue exceeded revenue, resulting in a deeply negative gross margin that weakened sequentially but improved year-over-year.
- The gross margin was negative in all periods, driven by cost of revenue that substantially exceeded revenue. The sequential weakening was due to a larger increase in cost of revenue relative to the decline in revenue.
- Compared to the immediately preceding quarter, revenue was slightly lower and gross profit was more negative, leading to a weakened gross margin. Compared to the same quarter one year earlier, revenue was higher and gross profit was less negative, resulting in an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-607.2%
Gross profit
-$204.6M
Revenue
$33.7M
Cost of revenue
$238.3M
Quarter-over-quarter change
-26.3 pts
Year-over-year change
+16.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $32.0M | -$195.6M | $227.6M | -610.4% |
| Sep 30, 2025 | $32.5M | -$202.9M | $235.5M | -623.7% |
| Dec 31, 2025 | $34.0M | -$197.5M | $231.5M | -580.9% |
| Mar 31, 2026 | $33.7M | -$204.6M | $238.3M | -607.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-26.3 pts
Year-over-year change
Mar 31, 2025
+16.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin was negative in all periods, driven by cost of revenue that substantially exceeded revenue. The sequential weakening was due to a larger increase in cost of revenue relative to the decline in revenue.
Compared to the immediately preceding quarter, revenue was slightly lower and gross profit was more negative, leading to a weakened gross margin. Compared to the same quarter one year earlier, revenue was higher and gross profit was less negative, resulting in an improved gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as cost of revenue continues to exceed revenue and drives the negative gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Extra Space Storage Inc. (EXR) | -607.2% |