Republic Services, Inc. stock research
FY2023 Q2
Republic Services (RSG) Gross Margin — Quarter Ended Jun 30, 2023
Revenue grew compared to both the prior quarter and the same quarter last year. Gross profit increased, and gross margin improved relative to both periods, as cost of revenue rose at a slower rate than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue grew compared to both the prior quarter and the same quarter last year. Gross profit increased, and gross margin improved relative to both periods, as cost of revenue rose at a slower rate than revenue.
- The primary driver of the improved gross margin was revenue growth that outpaced the increase in cost of revenue, particularly compared to the prior quarter where cost of revenue was unchanged.
- Gross margin strengthened from the prior quarter and from the same quarter a year ago, reflecting higher revenue and gross profit in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.3%
Gross profit
$1.5B
Revenue
$3.7B
Cost of revenue
$2.2B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+0.8 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, 2023 | $3.6B | $1.4B | $2.2B | 39.4% |
| Jun 30, 2023 | $3.7B | $1.5B | $2.2B | 40.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.9 pts
Year-over-year change
Jun 30, 2022
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the improved gross margin was revenue growth that outpaced the increase in cost of revenue, particularly compared to the prior quarter where cost of revenue was unchanged.
Gross margin strengthened from the prior quarter and from the same quarter a year ago, reflecting higher revenue and gross profit in both comparisons.
Monitor the relative growth rates of revenue and cost of revenue in upcoming quarters to assess margin sustainability.