Align Technology, Inc. stock research
FY2025 Q3
Align Technology (ALGN) Gross Margin — Quarter Ended Sep 30, 2025
Revenue decreased compared to the prior quarter, while gross profit and gross margin also declined. Cost of revenue was higher than both the previous quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue decreased compared to the prior quarter, while gross profit and gross margin also declined. Cost of revenue was higher than both the previous quarter and the same quarter last year.
- Gross margin weakened from the prior quarter and the year-ago quarter, driven by a larger increase in cost of revenue relative to the change in revenue.
- Compared to the immediately preceding quarter, revenue was lower, gross profit was lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue was slightly higher, but gross profit was lower and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.2%
Gross profit
$639.2M
Revenue
$995.7M
Cost of revenue
$356.5M
Quarter-over-quarter change
-5.7 pts
Year-over-year change
-5.5 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $995.7M | $639.2M | $356.5M | 64.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-5.7 pts
Year-over-year change
Sep 30, 2024
-5.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin weakened from the prior quarter and the year-ago quarter, driven by a larger increase in cost of revenue relative to the change in revenue.
Compared to the immediately preceding quarter, revenue was lower, gross profit was lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue was slightly higher, but gross profit was lower and gross margin weakened.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.