Royal Caribbean Cruises Ltd. stock research
FY2025 Q2
Royal Caribbean Cruises (RCL) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased from the prior quarter and from the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. The resulting gross profit and gross margin both improved sequentially and year-over-year.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue increased from the prior quarter and from the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. The resulting gross profit and gross margin both improved sequentially and year-over-year.
- Gross margin improvement was supported by a stronger relationship between revenue growth and cost of revenue, with revenue increasing faster than costs on both comparisons.
- Compared to the immediately preceding quarter, both revenue and gross profit were higher, while cost of revenue was lower, leading to an improved gross margin. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, yet gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
49.7%
Gross profit
$2.3B
Revenue
$4.5B
Cost of revenue
$2.3B
Quarter-over-quarter change
+1.7 pts
Year-over-year change
+2.1 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $4.9B | $2.5B | $2.4B | 51.1% |
| Dec 31, 2024 | $3.8B | $1.7B | $2.1B | 45.4% |
| Mar 31, 2025 | $4.0B | $1.9B | $2.1B | 48.0% |
| Jun 30, 2025 | $4.5B | $2.3B | $2.3B | 49.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+1.7 pts
Year-over-year change
Jun 30, 2024
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improvement was supported by a stronger relationship between revenue growth and cost of revenue, with revenue increasing faster than costs on both comparisons.
Compared to the immediately preceding quarter, both revenue and gross profit were higher, while cost of revenue was lower, leading to an improved gross margin. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, yet gross margin strengthened.
Monitor the trajectory of cost of revenue relative to revenue, as its decline versus the prior quarter was a key factor in margin improvement.