Extra Space Storage Inc (0IJV.L) delivered a Q3 2025 performance that underscores the stability of the self-storage model even as top-line revenue softened in the quarter. Revenue of $777.6 million declined year-over-year by 9.0% and quarter-over-quarter by 7.6%, while gross profit reached $307.4 million for a gross margin of 39.5%. Operating income was $279.1 million (operating margin 35.9%), and net income was $169.9 million with EPS of $0.78. EBITDA stood at $499.0 million, yielding an EBITDARatio of 0.642, signaling strong earnings before financing and depreciation relative to revenue. The quarter featured a substantial interest burden (interest expense of $749.8 million), resulting in an EBIT coverage of 0.37x, highlighting the leverage risk facing the balance sheet even as ACHIEVING positive bottom-line results helped support free cash flow per share (FCF per share) of $2.20 and operating cash flow per share (OCF per share) of $2.16. Management commentary in the call (where available) typically centers on rate discipline, occupancy stability, and disciplined capital allocation; however, no transcript has been provided in the data, limiting direct quotes. The near-term outlook remains dependent on rent growth, occupancy retention, and refinancing conditions given a debt-heavy capital structure.
Key Performance Indicators
Revenue
Decreasing
777.56M
QoQ: -7.61% | YoY: -9.03%
Gross Profit
Decreasing
307.45M
39.54% margin
QoQ: -48.51% | YoY: -51.06%
Operating Income
Decreasing
279.12M
QoQ: -25.36% | YoY: -7.80%
Net Income
Decreasing
169.94M
QoQ: -31.95% | YoY: -11.86%
EPS
Decreasing
0.78
QoQ: -33.90% | YoY: -17.89%
Revenue Trend
Margin Analysis
Financial Highlights
Financial highlights for Q3 2025 (USD, all figures approximate):
- Revenue: $777.6 million; YoY: -9.03%; QoQ: -7.61%
- Gross Profit: $307.4 million; Gross Margin: 39.54%; YoY Gross Profit: -51.06%; QoQ: -48.51%
- Operating Income: $279.1 million; Operating Margin: 35.90%; YoY: -7.80%; QoQ: -25.36%
- Net Income: $169.9 million; Net Margin: 21.86%; YoY: -11.86%; QoQ: -31.95%
- EPS: $0.78; EPS Diluted: $0.78; YoY: -17.89%; QoQ: -33.90%
- EBITDA: $499.0 million; EBITDA Margin (EBITDA/Revenue): 64.18%
- Interest Expense: $749.8 million; Depreciation & Amortization: $177.5 million
- Income Before Tax: $124.8 million; Income Tax Benefit: -$53.22 million; Net Income: $169.9 million
- Weighted Avg Shares: 211.9 million; Cash Flow per Share (OCF): $2.16; Free Cash Flow per Share (FCF): $2.20
- Liquidity: Current Ratio 0.203; Quick Ratio 0.203; Cash Ratio 0.203
- Leverage & Coverage: Debt Ratio 0.467; Debt/Capitalization 0.501; Long-Term Debt to Capitalization 0.487; Interest Coverage (EBIT/Interest) 0.37x
- Valuation & Returns: Price/Earnings 43.94x; Price/Book 2.19x; Price/Sales 38.41x; Dividend Yield 1.15%; EV/EBITDA 87.00x; Dividend Payout Ratio 2.02x; Capex Coverage 54.41x; Dividends Paid vs Capex Coverage 1.298x
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
777.56M
-9.03%
-7.61%
Gross Profit
307.45M
-51.06%
-48.51%
Operating Income
279.12M
-7.80%
-25.36%
Net Income
169.94M
-11.86%
-31.95%
EPS
0.78
-17.89%
-33.90%
Key Financial Ratios
Gross Profit Margin
Fair
39.50%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Excellent
35.90%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
21.90%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Weak
0.58%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.25%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.20
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
1.00
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
High Growth
43.94x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
Fair Value
2.19x
Price-to-book ratio reasonable for profitable companies
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