Waste Management (WM) Gross Margin — Quarter Ended Sep 30, 2025

Revenue and gross profit were stable compared to the prior quarter, while gross margin edged higher. Relative to the same quarter last year, revenue and gross profit were higher, and gross margin improved.

Gross margin takeaway

Quarter ended Sep 30, 2025 · FY2025 Q3

The year-over-year gross margin expansion was driven by a larger increase in gross profit relative to the increase in cost of revenue.
Quarter-over-quarter, revenue and gross profit were unchanged, while gross margin improved slightly. Year-over-year, all metrics were higher, with gross margin also higher.

Gross margin snapshot

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

Gross margin

40.5%

Gross profit

$2.6B

Revenue

$6.4B

Cost of revenue

$3.8B

Quarter-over-quarter change

+0.2 pts

Year-over-year change

+1.1 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	$5.9B	$2.3B	$3.6B	39.7%
Mar 31, 2025	$6.0B	$2.4B	$3.6B	40.0%
Jun 30, 2025	$6.4B	$2.6B	$3.8B	40.3%
Sep 30, 2025	$6.4B	$2.6B	$3.8B	40.5%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2025

+0.2 pts

Year-over-year change

Sep 30, 2024

+1.1 pts

What the margin says

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

The year-over-year gross margin expansion was driven by a larger increase in gross profit relative to the increase in cost of revenue.

Quarter-over-quarter, revenue and gross profit were unchanged, while gross margin improved slightly. Year-over-year, all metrics were higher, with gross margin also higher.

Monitor whether gross margin can sustain its improvement given the stable revenue and cost levels compared to the prior quarter.