IACCAUTIOUS

IAC Gross Margin Analysis

62.2%

Higher than 48% of Technology sector peers

Updated 204h ago·SEC filings & market data

Key Takeaway

IAC’s gross margin of 62.2% means that for every dollar of revenue, the company keeps roughly 62 cents after paying the direct costs of producing its services, a basic measure of profitability.

Sector Performance

48th percentile

IAC

62.2%

Sector Median

65.3%

Sector Avg

60.9%

📊

Deep Analysis

IAC’s gross margin of 62.2% means that for every dollar of revenue, the company keeps roughly 62 cents after paying the direct costs of producing its services, a basic measure of profitability.

Against technology-sector peers, the company lands just below the sector median of 65.2%, placing it at the 49th percentile — essentially in the middle of the pack. Both the year-over-year change and quarter-over-quarter change are listed as N/A, and no trend data is available for the last eight quarters, so no direction can be inferred. The lack of trend data combined with a gross margin that sits near the sector median offers neither a clear opportunity nor a distinct risk, making the metric a neutral factor. This neutrality does not contradict the overall CAUTIOUS verdict; rather, it aligns with the prudence implied by an unknown trajectory and a level that fails to outperform peers.

Frequently Asked Questions

What does the Gross Margin tell investors about IAC?

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 IAC's Gross Margin compare to its sector?

IAC's Gross Margin of 62.2% compares to a Technology sector median of 65.3%, placing it in the 48th percentile.

Who are IAC's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: DDOG (79.2%), BOX (79.5%), RBLX (79.6%), DBX (79.7%), SMAR (81.3%).

📚

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.