Republic Services, Inc. stock research
FY2025 Q2
Republic Services (RSG) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin was stable versus the prior quarter and improved relative to the year-ago period, as cost of revenue grew at a slower pace than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin was stable versus the prior quarter and improved relative to the year-ago period, as cost of revenue grew at a slower pace than revenue.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased while cost of revenue remained unchanged year over year, leading to an improved gross margin.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, while gross margin was stable. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.2%
Gross profit
$1.8B
Revenue
$4.2B
Cost of revenue
$2.4B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+1.0 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, 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% |
| Jun 30, 2025 | $4.2B | $1.8B | $2.4B | 42.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.1 pts
Year-over-year change
Jun 30, 2024
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased while cost of revenue remained unchanged year over year, leading to an improved gross margin.
Compared to the immediately preceding quarter, revenue and gross profit were higher, while gross margin was stable. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.
Monitor whether cost of revenue remains stable relative to revenue in future quarters, as this relationship has been a key factor in margin performance.