Republic Services, Inc. stock research
FY2024 Q2
Republic Services (RSG) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly from the prior quarter and more notably from a year ago, reflecting a favorable relationship between revenue growth and cost control.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly from the prior quarter and more notably from a year ago, reflecting a favorable relationship between revenue growth and cost control.
- The strongest observable margin driver is the consistent expansion of gross margin relative to both the prior quarter and the year-ago quarter, supported by revenue growth outpacing cost of revenue increases.
- Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. Revenue and gross profit were higher in both comparisons, while cost of revenue was higher as well.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.1%
Gross profit
$1.7B
Revenue
$4.0B
Cost of revenue
$2.4B
Quarter-over-quarter change
+0.2 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $3.8B | $1.5B | $2.3B | 40.3% |
| Dec 31, 2023 | $3.8B | $1.6B | $2.3B | 40.9% |
| Mar 31, 2024 | $3.9B | $1.6B | $2.3B | 40.9% |
| Jun 30, 2024 | $4.0B | $1.7B | $2.4B | 41.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.2 pts
Year-over-year change
Jun 30, 2023
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the consistent expansion of gross margin relative to both the prior quarter and the year-ago quarter, supported by revenue growth outpacing cost of revenue increases.
Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. Revenue and gross profit were higher in both comparisons, while cost of revenue was higher as well.
Monitor the trend in cost of revenue relative to revenue, as its increase could pressure gross margin if revenue growth slows.