Republic Services, Inc. stock research
FY2025 Q1
Republic Services (RSG) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and cost of revenue were both higher compared to the same quarter one year earlier, resulting in a higher gross profit and an improved gross margin. Compared to the immediately preceding quarter, revenue was stable while cost of revenue was also stable, leading to a slightly lower gross profit and a marginally weakened gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and cost of revenue were both higher compared to the same quarter one year earlier, resulting in a higher gross profit and an improved gross margin. Compared to the immediately preceding quarter, revenue was stable while cost of revenue was also stable, leading to a slightly lower gross profit and a marginally weakened gross margin.
- The gross margin improved compared to the same quarter one year earlier, driven by a higher gross profit relative to revenue. The strongest observable driver is the relationship between revenue and cost of revenue, where revenue grew while cost of revenue remained unchanged year-over-year.
- Compared to the immediately preceding quarter, gross margin weakened slightly as gross profit decreased marginally while revenue was stable. Compared to the same quarter one year earlier, gross margin improved as gross profit increased while cost of revenue was unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.3%
Gross profit
$1.7B
Revenue
$4.0B
Cost of revenue
$2.3B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+1.4 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $4.0B | $1.7B | $2.3B | 42.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-0.5 pts
Year-over-year change
Mar 31, 2024
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved compared to the same quarter one year earlier, driven by a higher gross profit relative to revenue. The strongest observable driver is the relationship between revenue and cost of revenue, where revenue grew while cost of revenue remained unchanged year-over-year.
Compared to the immediately preceding quarter, gross margin weakened slightly as gross profit decreased marginally while revenue was stable. Compared to the same quarter one year earlier, gross margin improved as gross profit increased while cost of revenue was unchanged.
Monitor the stability of cost of revenue, as it remained unchanged year-over-year but was stable quarter-over-quarter, which could indicate a trend worth tracking.