Republic Services, Inc. stock research
FY2025 Q3
Republic Services (RSG) Gross Margin — Quarter Ended Sep 30, 2025
Revenue was unchanged from the prior quarter, while gross profit and cost of revenue both moved in opposite directions, resulting in a slightly lower gross margin. Compared with the same quarter a year ago, revenue was higher and gross profit was stable, with cost of revenue also higher, leading to a slightly weakened gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue was unchanged from the prior quarter, while gross profit and cost of revenue both moved in opposite directions, resulting in a slightly lower gross margin. Compared with the same quarter a year ago, revenue was higher and gross profit was stable, with cost of revenue also higher, leading to a slightly weakened gross margin.
- The strongest observable margin driver is the relationship between cost of revenue and revenue: cost of revenue increased while revenue remained flat sequentially, putting downward pressure on gross margin.
- Compared with the immediately preceding quarter, gross margin was lower, driven by higher cost of revenue against flat revenue. Versus the same quarter one year earlier, gross margin was slightly lower, as revenue growth was offset by a proportionally larger increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.5%
Gross profit
$1.7B
Revenue
$4.2B
Cost of revenue
$2.5B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-0.4 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $4.2B | $1.7B | $2.5B | 41.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.6 pts
Year-over-year change
Sep 30, 2024
-0.4 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 cost of revenue and revenue: cost of revenue increased while revenue remained flat sequentially, putting downward pressure on gross margin.
Compared with the immediately preceding quarter, gross margin was lower, driven by higher cost of revenue against flat revenue. Versus the same quarter one year earlier, gross margin was slightly lower, as revenue growth was offset by a proportionally larger increase in cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its increase without corresponding revenue growth weakened gross margin this quarter.