RC

Royal Caribbean Cruises Ltd. stock research

Mar 31, 2025

FY2025 Q1

Royal Caribbean Cruises (RCL) Gross Margin — Quarter Ended Mar 31, 2025

Revenue rose while cost of revenue held steady, lifting gross profit and gross margin. Compared with the prior quarter and the same quarter a year earlier, gross margin improved as revenue and gross profit were higher and cost of revenue remained similar.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue rose while cost of revenue held steady, lifting gross profit and gross margin. Compared with the prior quarter and the same quarter a year earlier, gross margin improved as revenue and gross profit were higher and cost of revenue remained similar.

  • The strongest observable driver is the increase in revenue together with a stable cost of revenue, which directly supported gross margin expansion.
  • Current-quarter revenue and gross profit were higher than both the immediately preceding quarter and the same quarter one year earlier, while cost of revenue was similar. Gross margin improved compared with both periods.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

48.0%

Gross profit

$1.9B

Revenue

$4.0B

Cost of revenue

$2.1B

Quarter-over-quarter change

+2.6 pts

Year-over-year change

+3.2 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2024$4.1B$2.0B$2.2B47.6%
Sep 30, 2024$4.9B$2.5B$2.4B51.1%
Dec 31, 2024$3.8B$1.7B$2.1B45.4%
Mar 31, 2025$4.0B$1.9B$2.1B48.0%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2024

+2.6 pts

Year-over-year change

Mar 31, 2024

+3.2 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable driver is the increase in revenue together with a stable cost of revenue, which directly supported gross margin expansion.

Current-quarter revenue and gross profit were higher than both the immediately preceding quarter and the same quarter one year earlier, while cost of revenue was similar. Gross margin improved compared with both periods.

Monitor revenue growth sustainability and any shift in cost of revenue trends.