Republic Services, Inc. stock research
FY2023 Q3
Republic Services (RSG) Gross Margin — Quarter Ended Sep 30, 2023
Revenue, cost of revenue, and gross profit all increased compared to the prior quarter, while gross margin remained stable. Versus the same quarter last year, revenue and gross profit grew at a faster pace than cost of revenue, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue, cost of revenue, and gross profit all increased compared to the prior quarter, while gross margin remained stable. Versus the same quarter last year, revenue and gross profit grew at a faster pace than cost of revenue, resulting in an improved gross margin.
- Gross profit kept pace with the rise in revenue, maintaining a consistent gross margin quarter over quarter. The year-over-year improvement in margin was driven by a proportionally smaller increase in cost of revenue relative to revenue.
- Compared to the prior quarter, revenue increased, cost of revenue increased, and gross profit increased, with gross margin unchanged. Compared to the same quarter a year ago, revenue, cost of revenue, and gross profit all increased, with gross margin higher.
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
$3.8B
Cost of revenue
$2.3B
Quarter-over-quarter change
-0.0 pts
Year-over-year change
+1.3 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% |
| Sep 30, 2023 | $3.8B | $1.5B | $2.3B | 40.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.0 pts
Year-over-year change
Sep 30, 2022
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit kept pace with the rise in revenue, maintaining a consistent gross margin quarter over quarter. The year-over-year improvement in margin was driven by a proportionally smaller increase in cost of revenue relative to revenue.
Compared to the prior quarter, revenue increased, cost of revenue increased, and gross profit increased, with gross margin unchanged. Compared to the same quarter a year ago, revenue, cost of revenue, and gross profit all increased, with gross margin higher.
Monitor the trend in cost of revenue relative to revenue, as its growth rate has moderated year over year but matched revenue growth sequentially.