HOODNEUTRAL

HOOD Gross Margin Analysis

82.0%

Updated 108h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after covering the direct costs of delivering its services — at 80.6%, HOOD retains over 80 cents for every dollar of revenue.

Sector Performance

93th percentile

HOOD

82.0%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

80.6%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after covering the direct costs of delivering its services — at 80.6%, HOOD retains over 80 cents for every dollar of revenue.

This is above the sector median of 68.5% and places HOOD in the 68th percentile among its Financial Services peers, indicating a stronger profitability profile than most competitors. The trend is marked as not available, with no year-over-year or quarter-over-quarter change reported, so there is no data to assess whether this margin is improving, stable, or declining. Without a trend direction, the high absolute level suggests a competitive advantage, but the lack of historical context means investors cannot gauge momentum or sustainability. This high margin generally supports a positive view, but the overall NEUTRAL verdict on the stock appears appropriate given that trend information — essential for judging risk or opportunity — is absent.

Frequently Asked Questions

What does the Gross Margin tell investors about HOOD?

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 HOOD's closest peers by Gross Margin?

The closest peers by Gross Margin include: HII (12.6%), VLO (12.3%), EXPD (12.3%), LMT (12.2%), EPD (12.1%).

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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.