ESSCAUTIOUS

ESS Gross Margin Analysis

68.4%

Updated 12h ago·SEC filings & market data

Key Takeaway

A gross margin of 68.4% means ESS keeps $0.684 of every sales dollar after paying direct production costs—a core measure of pricing power and cost efficiency.

Sector Performance

84th percentile

ESS

68.4%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

68.1%(Jul 2026)

→ Stable

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Deep Analysis

A gross margin of 68.4% means ESS keeps $0.684 of every sales dollar after paying direct production costs—a core measure of pricing power and cost efficiency.

That sits far above the sector median of 44.6%, placing ESS in the 84th percentile among peers, indicating the company generates unusually high profit per dollar of revenue. The trend is mostly N/A: the year-over-year change is N/A, the 8-quarter trend direction is N/A, and the quarter-over-quarter change is +0.4%, with recent values moving from 68.1% to 68.4%. The combination of a very high margin level and a slight sequential increase suggests stable operational strength, but the missing longer-term trend limits confidence in direction. For investment risk, this high margin offers a cushion against cost pressures

Frequently Asked Questions

What does the Gross Margin tell investors about ESS?

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.

Who are ESS's closest peers by Gross Margin?

The closest peers by Gross Margin include: MSCI (82.7%), SYF (82.7%), EA (82.8%), THC (83.4%), INTU (83.9%).

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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.