AFRMNEUTRAL

Gross Margin

65.9%

Higher than 53% of Technology sector peers

Updated 1078h ago

Sector Performance

53th percentile

AFRM

65.9%

Sector Median

65.2%

Sector Avg

60.6%

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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 65.2%, placing it in the 53th percentile.

Who are AFRM's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: LYFT (47.6%), COHU (46.3%), UBER (45.0%), LSPD (44.4%), GRAB (43.4%).

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.