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 data from Finnhub with its as-of date, next to operating and net margin so the full profit "waterfall" is visible.

Highest gross-margin companies →

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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.