Alpha and Omega Semiconductor Ltd (AOSL)

Gross profit margin

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Gross profit US$ in thousands 161,004,000 171,918 199,536 268,556 204,543
Revenue US$ in thousands 696,162,000 657,274 691,321 777,552 656,902
Gross profit margin 23.13% 26.16% 28.86% 34.54% 31.14%

June 30, 2025 calculation

Gross profit margin = Gross profit ÷ Revenue
= $161,004,000K ÷ $696,162,000K
= 23.13%

The gross profit margin of Alpha and Omega Semiconductor Ltd. has exhibited notable fluctuations over the observed period from June 30, 2021, to June 30, 2025. At the end of fiscal year 2021, the company's gross profit margin stood at 31.14%, indicating a healthy level of profitability relative to sales revenue. This margin increased markedly in 2022 to reach 34.54%, reflecting an improvement in either cost efficiencies, pricing strategies, or a combination of both, which contributed to a higher proportion of gross profit relative to sales.

However, subsequent years have demonstrated a downward trend. By June 30, 2023, the gross profit margin declined to 28.86%. This decrease suggests heightened cost pressures, potential pricing challenges, or a shift in the product mix that adversely affected profitability at the gross level. The declining margin continued into the following fiscal year, reaching 26.16% as of June 30, 2024, and further narrowed to 23.13% by June 30, 2025. This persistent reduction indicates a possible deterioration in cost control, increased competitive pressures, or changing market dynamics affecting the company's ability to maintain higher gross profit margins.

Overall, the trend reflects a contraction in gross profitability over the analyzed period, with the margin decreasing by approximately 8 percentage points from its peak in 2022 to 2025. This pattern warrants further investigation into the underlying cost structures, pricing strategies, and market conditions to understand the factors contributing to the sustained decline in gross profit margin over these years.