Republic Services, Inc. stock research
FY2025 Q4
Republic Services (RSG) Gross Margin — Quarter Ended Dec 31, 2025
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit remained stable across both comparisons, while cost of revenue decreased from the prior quarter and increased year over year, resulting in a gross margin that improved sequentially but weakened compared to the prior year.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit remained stable across both comparisons, while cost of revenue decreased from the prior quarter and increased year over year, resulting in a gross margin that improved sequentially but weakened compared to the prior year.
- The gross margin improved from the prior quarter as cost of revenue declined relative to revenue, while the year-over-year decline in gross margin was driven by a larger increase in cost of revenue relative to revenue growth.
- Compared to the prior quarter, revenue was lower and cost of revenue was lower, with gross profit unchanged, leading to a higher gross margin. Compared to the same quarter last year, revenue was higher and cost of revenue was higher, with gross profit unchanged, resulting in a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.9%
Gross profit
$1.7B
Revenue
$4.1B
Cost of revenue
$2.4B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-0.9 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, 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% |
| Dec 31, 2025 | $4.1B | $1.7B | $2.4B | 41.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+0.3 pts
Year-over-year change
Dec 31, 2024
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved from the prior quarter as cost of revenue declined relative to revenue, while the year-over-year decline in gross margin was driven by a larger increase in cost of revenue relative to revenue growth.
Compared to the prior quarter, revenue was lower and cost of revenue was lower, with gross profit unchanged, leading to a higher gross margin. Compared to the same quarter last year, revenue was higher and cost of revenue was higher, with gross profit unchanged, resulting in a lower gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate has diverged from revenue trends across the comparative periods.