Align Technology, Inc. stock research
FY2025 Q1
Align Technology (ALGN) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue was relatively stable. Gross margin weakened slightly versus both comparison periods, reflecting a modestly lower proportion of revenue retained as gross profit.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue was relatively stable. Gross margin weakened slightly versus both comparison periods, reflecting a modestly lower proportion of revenue retained as gross profit.
- The gross margin decline was driven by a combination of lower revenue and a nearly unchanged cost of revenue, which compressed the spread between revenue and cost. The strongest observable driver is the revenue decrease, as cost of revenue remained essentially flat.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was slightly higher, and gross margin weakened. Versus the same quarter one year earlier, revenue and gross profit were also lower, cost of revenue was marginally lower, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.5%
Gross profit
$680.1M
Revenue
$979.3M
Cost of revenue
$299.2M
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-0.5 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $1.0B | $722.6M | $305.9M | 70.3% |
| Sep 30, 2024 | $977.9M | $681.8M | $296.1M | 69.7% |
| Dec 31, 2024 | $995.2M | $696.9M | $298.3M | 70.0% |
| Mar 31, 2025 | $979.3M | $680.1M | $299.2M | 69.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-0.6 pts
Year-over-year change
Mar 31, 2024
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decline was driven by a combination of lower revenue and a nearly unchanged cost of revenue, which compressed the spread between revenue and cost. The strongest observable driver is the revenue decrease, as cost of revenue remained essentially flat.
Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was slightly higher, and gross margin weakened. Versus the same quarter one year earlier, revenue and gross profit were also lower, cost of revenue was marginally lower, and gross margin weakened.
Monitor whether revenue continues to decline while cost of revenue remains stable, as this pattern would further pressure gross margin.