Royal Caribbean Cruises Ltd. stock research
FY2025 Q4
Royal Caribbean Cruises (RCL) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both decreased from the prior quarter, while cost of revenue declined at a slower pace, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit increased, and gross margin improved as cost of revenue rose less than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both decreased from the prior quarter, while cost of revenue declined at a slower pace, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit increased, and gross margin improved as cost of revenue rose less than revenue.
- The gross margin weakened sequentially as the decline in revenue outpaced the reduction in cost of revenue. Year over year, the margin strengthened because revenue growth exceeded cost of revenue growth.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all lower, while cost of revenue was also lower. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, while cost of revenue was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.4%
Gross profit
$2.0B
Revenue
$4.3B
Cost of revenue
$2.2B
Quarter-over-quarter change
-4.4 pts
Year-over-year change
+1.9 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, 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% |
| Dec 31, 2025 | $4.3B | $2.0B | $2.2B | 47.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-4.4 pts
Year-over-year change
Dec 31, 2024
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially as the decline in revenue outpaced the reduction in cost of revenue. Year over year, the margin strengthened because revenue growth exceeded cost of revenue growth.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all lower, while cost of revenue was also lower. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, while cost of revenue was higher.
Monitor the relationship between revenue and cost of revenue trends, as the sequential margin compression suggests cost reductions are not keeping pace with revenue changes.