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Gross margin

Gross margin is the share of revenue left after the direct cost of producing a company’s goods or services.

Gross margin is revenue minus the cost of goods sold (COGS), divided by revenue, as a percentage. It measures how profitable a company’s products are before overhead, sales, R&D, interest, and taxes. A 60% gross margin means $0.60 of every sales dollar remains after direct production costs.

A high, durable gross margin is often the first sign of a strong business model — pricing power, a differentiated product, or low input costs. It is the raw material from which all other profit is paid, so a company with a thin gross margin has little room to fund the rest of its operations.

stocks-llm shows gross margin as delayed market data with its as-of date, next to operating and net margin so the full profit "waterfall" is visible.

Highest gross-margin companies in the catalog

CompanyGross margin
1TON Strategy Co (TONX)+76550.0%
2MAINSTREET BANCSHARES INC (MNSB)+3368.7%
3Microbot Medical Inc. (MBOT)+514.6%
4I3 VERTICALS INC CLASS A (IIIV)+175.7%
5HIREQUEST INC (HQI)+100.3%

Live from the catalog, last updated 2026-09-03 — delayed data from SEC EDGAR + market data.

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Related terms

  • Earnings per share (EPS) — Earnings per share (EPS) is a company’s net profit divided by its shares outstanding — the profit attributable to each single share.
  • Earnings surprise and the reaction — An earnings surprise is how far a company’s reported profit landed from the analyst forecast; the reaction is what its share price actually did afterwards — and the two disagree far more often than people expect.
  • Net profit margin — Net profit margin is the share of every revenue dollar a company keeps as bottom-line profit, after all costs, interest, and taxes.
  • Operating margin — Operating margin is the share of revenue a company keeps as operating profit, after production costs and operating expenses but before interest and taxes.
  • Return on equity (ROE) — Return on equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity.

See more terms in the stocks-llm glossary.

Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.