UB

Uber Technologies, Inc. stock research

Mar 31, 2025

FY2025 Q1

Uber Technologies (UBER) Gross Margin — Quarter Ended Mar 31, 2025

Revenue decreased while cost of revenue fell more sharply, resulting in a slight increase in gross profit and a modest improvement in gross margin compared to the prior quarter. Compared to the same quarter last year, both revenue and gross profit were higher, and gross margin strengthened as cost of revenue grew at a slower pace than revenue.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue decreased while cost of revenue fell more sharply, resulting in a slight increase in gross profit and a modest improvement in gross margin compared to the prior quarter. Compared to the same quarter last year, both revenue and gross profit were higher, and gross margin strengthened as cost of revenue grew at a slower pace than revenue.

  • The strongest observable driver of the gross margin change is the proportionally larger reduction in cost of revenue relative to the decline in revenue from the prior quarter, which allowed gross profit to remain nearly stable even as revenue fell.
  • Compared to the immediately preceding quarter, revenue was lower, gross profit was slightly lower, and gross margin was marginally higher. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, with cost of revenue increasing at a slower rate than revenue.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

33.1%

Gross profit

$3.8B

Revenue

$11.5B

Cost of revenue

$7.7B

Quarter-over-quarter change

+0.2 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.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2024$10.7B$3.4B$7.3B32.0%
Sep 30, 2024$11.2B$3.6B$7.6B32.5%
Dec 31, 2024$12.0B$3.9B$8.0B33.0%
Mar 31, 2025$11.5B$3.8B$7.7B33.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2024

+0.2 pts

Year-over-year change

Mar 31, 2024

+1.8 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable driver of the gross margin change is the proportionally larger reduction in cost of revenue relative to the decline in revenue from the prior quarter, which allowed gross profit to remain nearly stable even as revenue fell.

Compared to the immediately preceding quarter, revenue was lower, gross profit was slightly lower, and gross margin was marginally higher. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, with cost of revenue increasing at a slower rate than revenue.

Monitor the trajectory of cost of revenue relative to revenue, as the ability to keep cost growth below revenue growth was key to the margin improvement.