United Rentals, Inc. stock research
FY2024 Q3
United Rentals (URI) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both improved compared with the immediately preceding quarter and the same quarter one year earlier, while cost of revenue was stable relative to the prior quarter but higher versus the prior year. Gross margin strengthened versus both comparison periods, driven by a larger proportion of gross profit relative to revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both improved compared with the immediately preceding quarter and the same quarter one year earlier, while cost of revenue was stable relative to the prior quarter but higher versus the prior year. Gross margin strengthened versus both comparison periods, driven by a larger proportion of gross profit relative to revenue.
- Gross profit exceeded revenue in the current quarter, resulting in a gross margin above one hundred percent. This suggests a structural relationship between revenue, cost of revenue, and gross profit where cost of revenue is reported as a larger absolute figure than revenue.
- Compared with the immediately preceding quarter, revenue and gross profit were higher and the gross margin improved from a negative level to a positive level. Compared with the same quarter one year earlier, revenue and gross profit were also higher, and gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
188.6%
Gross profit
$1.6B
Revenue
$874.0M
Cost of revenue
$2.3B
Quarter-over-quarter change
+273.4 pts
Year-over-year change
+0.3 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, 2023 | $842.0M | $1.6B | $2.2B | 188.2% |
| Mar 31, 2024 | $3.5B | $1.3B | $2.1B | 38.6% |
| Jun 30, 2024 | -$1.8B | $1.5B | $2.3B | -84.8% |
| Sep 30, 2024 | $874.0M | $1.6B | $2.3B | 188.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+273.4 pts
Year-over-year change
Sep 30, 2023
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit exceeded revenue in the current quarter, resulting in a gross margin above one hundred percent. This suggests a structural relationship between revenue, cost of revenue, and gross profit where cost of revenue is reported as a larger absolute figure than revenue.
Compared with the immediately preceding quarter, revenue and gross profit were higher and the gross margin improved from a negative level to a positive level. Compared with the same quarter one year earlier, revenue and gross profit were also higher, and gross margin strengthened.
Monitor the relationship between cost of revenue and revenue, as cost of revenue continues to exceed revenue in absolute terms.