Royal Caribbean Cruises Ltd. stock research
FY2025 Q3
Royal Caribbean Cruises (RCL) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose at a slower pace, leading to an improvement in gross margin. The gross margin strengthened sequentially and also improved relative to the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose at a slower pace, leading to an improvement in gross margin. The gross margin strengthened sequentially and also improved relative to the year-ago period.
- The gross margin improved as revenue grew faster than cost of revenue, both sequentially and year-over-year.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.8%
Gross profit
$2.7B
Revenue
$5.1B
Cost of revenue
$2.5B
Quarter-over-quarter change
+2.1 pts
Year-over-year change
+0.7 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $5.1B | $2.7B | $2.5B | 51.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+2.1 pts
Year-over-year change
Sep 30, 2024
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved as revenue grew faster than cost of revenue, both sequentially and year-over-year.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.
Monitor the trend in cost of revenue relative to revenue, as its slower growth supported margin expansion this quarter.