GFL Environmental Inc. (GFL) Income Statement

The quarterly revenue growth pattern shows no clear trend, with significant negative growth in several periods (e.g., -17.8% in 2024Q3, -15.1% in 2025Q4) followed by sharp positive spikes. This volatility suggests the top line is heavily influenced by the timing of acquisitions and divestitures, particularly the recent divestiture of non-core infrastructure assets, rather than stable underlying demand. Investors should focus on organic growth metrics, which are not provided, to assess the true durability of the business.

The gross margin has fluctuated between 16.5% and 22.2% over the past ten quarters, but has not shown a sustained upward trend toward peer levels. This persistent gap suggests GFL's integrated model has not yet translated into the superior cost structure seen at larger, more mature competitors. The margin profile appears constrained by the company's acquisition-heavy history, which may have prioritized volume over disposal asset ownership.

Operating margin has swung from a low of 0.1% in 2025Q1 to a high of 9.5% in 2025Q3, but has not established a clear upward trajectory. The lack of consistent operating leverage implies that SG&A and other overhead costs are rising in tandem with revenue, or that the cost of integrating acquisitions is consuming potential gains. This pattern is atypical for a company in a 'harvest' phase and warrants scrutiny of expense discipline.

The sharp swings in SG&A, such as the jump from $186M in 2025Q3 to $320M in 2025Q4, indicate that cost control is a challenge. This volatility makes it difficult to model future profitability and suggests that the company may be incurring lumpy expenses related to acquisitions or restructuring. Without a stable SG&A base, it is hard to assess management's true expense discipline.