Align Technology, Inc. stock research
FY2025 Q2
Align Technology (ALGN) Gross Margin — Quarter Ended Jun 30, 2025
Revenue was essentially flat compared to the same quarter last year and slightly higher than the prior quarter. Gross profit and cost of revenue both moved in line with revenue, resulting in a gross margin that was slightly lower year over year but marginally higher sequentially.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue was essentially flat compared to the same quarter last year and slightly higher than the prior quarter. Gross profit and cost of revenue both moved in line with revenue, resulting in a gross margin that was slightly lower year over year but marginally higher sequentially.
- The gross margin improved modestly from the prior quarter, driven by a slightly larger increase in gross profit relative to the increase in cost of revenue. The year-over-year comparison shows a slight weakening, as gross profit declined while cost of revenue remained nearly unchanged.
- Compared to the prior quarter, revenue and gross profit both increased, while cost of revenue rose at a slower pace, leading to a slightly higher gross margin. Versus the same quarter last year, revenue was stable, but gross profit was lower and cost of revenue was slightly lower, resulting in a marginally lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.9%
Gross profit
$708.1M
Revenue
$1.0B
Cost of revenue
$304.3M
Quarter-over-quarter change
+0.5 pts
Year-over-year change
-0.3 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 | $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% |
| Jun 30, 2025 | $1.0B | $708.1M | $304.3M | 69.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.5 pts
Year-over-year change
Jun 30, 2024
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved modestly from the prior quarter, driven by a slightly larger increase in gross profit relative to the increase in cost of revenue. The year-over-year comparison shows a slight weakening, as gross profit declined while cost of revenue remained nearly unchanged.
Compared to the prior quarter, revenue and gross profit both increased, while cost of revenue rose at a slower pace, leading to a slightly higher gross margin. Versus the same quarter last year, revenue was stable, but gross profit was lower and cost of revenue was slightly lower, resulting in a marginally lower gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its slower sequential growth supported margin improvement but its near-steady year-over-year level compressed gross profit.