Church & Dwight Co., Inc. stock research
FY2025 Q2
Church & Dwight (CHD) Gross Margin — Quarter Ended Jun 30, 2025
Revenue was essentially stable compared to both the prior quarter and the same quarter a year ago. Gross profit decreased as cost of revenue rose, leading to a lower gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue was essentially stable compared to both the prior quarter and the same quarter a year ago. Gross profit decreased as cost of revenue rose, leading to a lower gross margin.
- The primary observable driver of margin compression was the increase in cost of revenue while revenue remained flat. This indicates that the company's cost of generating revenue grew relative to sales.
- Compared with the immediately preceding quarter, gross margin weakened as cost of revenue increased and gross profit fell, while revenue was unchanged. Versus the same quarter one year earlier, the pattern was similar: revenue was stable, but cost of revenue was higher and gross profit and margin were lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.0%
Gross profit
$647.0M
Revenue
$1.5B
Cost of revenue
$859.3M
Quarter-over-quarter change
-2.0 pts
Year-over-year change
-4.2 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 | $1.5B | $683.1M | $827.5M | 45.2% |
| Dec 31, 2024 | $1.6B | $707.9M | $874.1M | 44.7% |
| Mar 31, 2025 | $1.5B | $659.6M | $807.5M | 45.0% |
| Jun 30, 2025 | $1.5B | $647.0M | $859.3M | 43.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-2.0 pts
Year-over-year change
Jun 30, 2024
-4.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of margin compression was the increase in cost of revenue while revenue remained flat. This indicates that the company's cost of generating revenue grew relative to sales.
Compared with the immediately preceding quarter, gross margin weakened as cost of revenue increased and gross profit fell, while revenue was unchanged. Versus the same quarter one year earlier, the pattern was similar: revenue was stable, but cost of revenue was higher and gross profit and margin were lower.
Monitor the trajectory of cost of revenue in future quarters, as it has been the sole factor behind the margin decline.