AFRMCAUTIOUS

AFRM Gross Margin Analysis

65.9%

Higher than 49% of Technology sector peers

Updated 2555h ago·SEC filings & market data

Key Takeaway

Gross margin, which measures the percentage of revenue remaining after subtracting the direct costs of producing services, stands at 65.9% for Affirm.

Sector Performance

49th percentile

AFRM

65.9%

Sector Median

66.3%

Sector Avg

62.2%

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Deep Analysis

Gross margin, which measures the percentage of revenue remaining after subtracting the direct costs of producing services, stands at 65.9% for Affirm.

This is almost identical to the sector median of 65.6%, placing Affirm in the 52nd percentile among technology peers—essentially middle of the pack. No year-over-year change, quarter-over-quarter change, or historical trend data are provided, so there is no directional signal from this metric alone. The combination of an average-level gross margin with no observable trend implies neither clear competitive advantage nor deterioration, keeping the risk-opportunity profile flat. Since this metric does not deviate meaningfully from sector norms, it neither strengthens nor weakens the case for investment. Therefore, the current gross margin supports the overall neutral verdict by providing no reason to adjust the outlook.

Frequently Asked Questions

What does the Gross Margin tell investors about AFRM?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AFRM's Gross Margin compare to its sector?

AFRM's Gross Margin of 65.9% compares to a Technology sector median of 66.3%, placing it in the 49th percentile.

Who are AFRM's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: MDB (72.2%), NVDA (74.9%), CRWD (75.3%), ESTC (75.4%), CRM (76.9%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.