Allegion plc stock research
FY2025 Q2
Allegion (ALLE) Gross Margin — Quarter Ended Jun 30, 2025
Revenue, gross profit, and cost of revenue each increased compared to the prior quarter and the same quarter last year. The gross margin improved, reflecting a larger relative increase in gross profit compared to the increase in cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue, gross profit, and cost of revenue each increased compared to the prior quarter and the same quarter last year. The gross margin improved, reflecting a larger relative increase in gross profit compared to the increase in cost of revenue.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Gross profit increased more than cost of revenue, leading to a higher gross margin.
- Compared to the prior quarter, gross margin improved from a lower level. Compared to the same quarter last year, gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.6%
Gross profit
$466.5M
Revenue
$1.0B
Cost of revenue
$555.5M
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+1.3 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 | $967.1M | $432.1M | $535.0M | 44.7% |
| Dec 31, 2024 | $945.6M | $416.7M | $528.9M | 44.1% |
| Mar 31, 2025 | $941.9M | $422.5M | $519.4M | 44.9% |
| Jun 30, 2025 | $1.0B | $466.5M | $555.5M | 45.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.8 pts
Year-over-year change
Jun 30, 2024
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Gross profit increased more than cost of revenue, leading to a higher gross margin.
Compared to the prior quarter, gross margin improved from a lower level. Compared to the same quarter last year, gross margin also improved.
Monitor the trend in cost of revenue relative to revenue, as changes in this relationship could affect gross margin.