Royal Caribbean Cruises Ltd. stock research
FY2024 Q4
Royal Caribbean Cruises (RCL) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit decreased compared to the prior quarter but increased compared to the same quarter last year. Gross margin weakened sequentially but improved year-over-year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit decreased compared to the prior quarter but increased compared to the same quarter last year. Gross margin weakened sequentially but improved year-over-year.
- The year-over-year improvement in gross margin was the strongest observable driver, while the sequential decline reflected a relatively smaller decrease in cost of revenue compared to revenue.
- Compared to the preceding quarter, both revenue and gross profit were lower, and gross margin weakened. Versus the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.4%
Gross profit
$1.7B
Revenue
$3.8B
Cost of revenue
$2.1B
Quarter-over-quarter change
-5.6 pts
Year-over-year change
+2.2 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 |
|---|---|---|---|---|
| Mar 31, 2024 | $3.7B | $1.7B | $2.1B | 44.8% |
| Jun 30, 2024 | $4.1B | $2.0B | $2.2B | 47.6% |
| Sep 30, 2024 | $4.9B | $2.5B | $2.4B | 51.1% |
| Dec 31, 2024 | $3.8B | $1.7B | $2.1B | 45.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-5.6 pts
Year-over-year change
Dec 31, 2023
+2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin was the strongest observable driver, while the sequential decline reflected a relatively smaller decrease in cost of revenue compared to revenue.
Compared to the preceding quarter, both revenue and gross profit were lower, and gross margin weakened. Versus the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.
Monitor the relationship between revenue and cost of revenue in upcoming quarters to assess margin sustainability.