APLDNEUTRAL

Gross Margin

42.5%

Higher than 17% of Technology sector peers

Updated 247h ago

Sector Performance

17th percentile

APLD

42.5%

Sector Median

65.2%

Sector Avg

60.4%

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Deep Analysis

Gross margin is the percentage of revenue a company retains after subtracting the direct costs of producing its goods or services.

Applied Digital’s current gross margin of 42.5% means it keeps roughly 42.5 cents of every revenue dollar to cover operating expenses and profit. This is far below the technology sector median of 65.2%, placing the company in the 17th percentile among its peers. The year-over-year and quarter-over-quarter changes are both listed as N/A, meaning no trend data is available to assess whether margins are improving or declining. The combination of a low margin relative to peers and no observable trend points to a competitive disadvantage that elevates investment risk. This metric contradicts the overall NEUTRAL verdict, because a gross margin this far below the sector median typically signals weaker pricing power or higher costs.

Frequently Asked Questions

What does the Gross Margin tell investors about APLD?

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 APLD's Gross Margin compare to its sector?

APLD's Gross Margin of 42.5% compares to a Technology sector median of 65.2%, placing it in the 17th percentile.

Who are APLD's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: ORCL (65.2%), MDB (72.2%), SAP (73.0%), LIF (77.3%), OKTA (77.8%).

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.