Republic Services, Inc. stock research
FY2024 Q4
Republic Services (RSG) Gross Margin — Quarter Ended Dec 31, 2024
Revenue decreased from the prior quarter while gross profit remained stable, resulting in an improved gross margin. Compared to the same quarter last year, both revenue and gross profit were higher, and gross margin strengthened.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue decreased from the prior quarter while gross profit remained stable, resulting in an improved gross margin. Compared to the same quarter last year, both revenue and gross profit were higher, and gross margin strengthened.
- Gross profit held steady despite a lower revenue base, indicating that cost of revenue declined at a faster rate than revenue. This relative cost efficiency was the primary observable factor behind the margin improvement.
- Compared to the prior quarter, gross margin improved as revenue decreased but gross profit was unchanged. Versus the same quarter a year ago, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.7%
Gross profit
$1.7B
Revenue
$4.0B
Cost of revenue
$2.3B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+1.8 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, 2024 | $3.9B | $1.6B | $2.3B | 40.9% |
| Jun 30, 2024 | $4.0B | $1.7B | $2.4B | 41.1% |
| Sep 30, 2024 | $4.1B | $1.7B | $2.4B | 41.9% |
| Dec 31, 2024 | $4.0B | $1.7B | $2.3B | 42.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.8 pts
Year-over-year change
Dec 31, 2023
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit held steady despite a lower revenue base, indicating that cost of revenue declined at a faster rate than revenue. This relative cost efficiency was the primary observable factor behind the margin improvement.
Compared to the prior quarter, gross margin improved as revenue decreased but gross profit was unchanged. Versus the same quarter a year ago, revenue, gross profit, and gross margin were all higher.
Monitor whether cost of revenue continues to decline relative to revenue in future periods, as this dynamic was the key factor in the current margin expansion.