Waste Management, Inc. stock research
FY2025 Q1
Waste Management (WM) Gross Margin — Quarter Ended Mar 31, 2025
In the current quarter, revenue increased compared to both the prior quarter and the same quarter a year ago, while gross profit increased more than cost of revenue, resulting in an improved gross margin. The company's filing notes no material changes to previously disclosed risk factors and provides standard liquidity and capital resources discussion.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
In the current quarter, revenue increased compared to both the prior quarter and the same quarter a year ago, while gross profit increased more than cost of revenue, resulting in an improved gross margin. The company's filing notes no material changes to previously disclosed risk factors and provides standard liquidity and capital resources discussion.
- The strongest observable margin driver is the increase in gross profit that exceeded the increase in cost of revenue when compared to both the prior quarter and the year-ago quarter, leading to a higher gross margin.
- Compared to the prior quarter, gross margin improved as revenue grew while cost of revenue remained unchanged. Versus the same quarter a year ago, margin also improved as revenue and gross profit rose more than the increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.0%
Gross profit
$2.4B
Revenue
$6.0B
Cost of revenue
$3.6B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+0.8 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $5.4B | $2.1B | $3.3B | 39.1% |
| Sep 30, 2024 | $5.6B | $2.2B | $3.4B | 39.4% |
| Dec 31, 2024 | $5.9B | $2.3B | $3.6B | 39.7% |
| Mar 31, 2025 | $6.0B | $2.4B | $3.6B | 40.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+0.3 pts
Year-over-year change
Mar 31, 2024
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in gross profit that exceeded the increase in cost of revenue when compared to both the prior quarter and the year-ago quarter, leading to a higher gross margin.
Compared to the prior quarter, gross margin improved as revenue grew while cost of revenue remained unchanged. Versus the same quarter a year ago, margin also improved as revenue and gross profit rose more than the increase in cost of revenue.
Monitor the trend in cost of revenue, as it held steady quarter-over-quarter but rose year-over-year; any acceleration in cost growth could pressure margins.