Albemarle Corporation stock research
FY2025 Q2
Albemarle (ALB) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose proportionally less, resulting in a slightly improved gross margin. Compared to the same quarter one year earlier, revenue was lower but gross profit turned positive from a loss, leading to a substantial improvement in gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose proportionally less, resulting in a slightly improved gross margin. Compared to the same quarter one year earlier, revenue was lower but gross profit turned positive from a loss, leading to a substantial improvement in gross margin.
- The strongest observable margin driver is the shift from a negative gross margin in the year-ago quarter to a positive margin in the current quarter, driven by a lower cost of revenue relative to revenue.
- Compared to the immediately preceding quarter, gross margin improved slightly as revenue growth outpaced cost of revenue growth. Compared to the same quarter one year earlier, gross margin strengthened significantly, moving from a loss to a profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
14.8%
Gross profit
$196.9M
Revenue
$1.3B
Cost of revenue
$1.1B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+15.5 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, 2024 | $1.4B | -$104.0M | $1.5B | -7.7% |
| Dec 31, 2024 | $1.2B | $138.2M | $1.1B | 11.2% |
| Mar 31, 2025 | $1.1B | $156.3M | $920.6M | 14.5% |
| Jun 30, 2025 | $1.3B | $196.9M | $1.1B | 14.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.3 pts
Year-over-year change
Jun 30, 2024
+15.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the shift from a negative gross margin in the year-ago quarter to a positive margin in the current quarter, driven by a lower cost of revenue relative to revenue.
Compared to the immediately preceding quarter, gross margin improved slightly as revenue growth outpaced cost of revenue growth. Compared to the same quarter one year earlier, gross margin strengthened significantly, moving from a loss to a profit.
Monitor the trajectory of cost of revenue relative to revenue, as its proportion was a key factor in the margin improvement.