LHNEUTRAL

LH Gross Margin Analysis

28.7%

Updated 276h ago·SEC filings & market data

Key Takeaway

LH's current gross margin of 28.7% means that after subtracting the direct costs of providing its services, the company keeps 28.7 cents of every dollar in revenue as gross profit.

Sector Performance

22th percentile

28.7%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

26.5%(May 2026)

↑ Improving

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Deep Analysis

LH's current gross margin of 28.7% means that after subtracting the direct costs of providing its services, the company keeps 28.7 cents of every dollar in revenue as gross profit.

This figure sits well below the sector median of 44.7%, placing LH in the 23rd percentile among its peers—indicating that the majority of competitors achieve higher gross profitability. Trend data is not available: the year-over-year change and quarter-over-quarter change are both reported as N/A, and the historical values show only the single latest figure. The combination of a below-median gross margin with no observable trend makes it difficult to assess whether this weakness is improving or worsening, adding a layer of uncertainty to the investment case. Because the metric is low relative to peers yet static in available data, it suggests a structural cost disadvantage that could weigh on future returns. This static, below-median gross margin supports the overall NEUTRAL verdict, as it does not strongly signal either a clear opportunity or an imminent risk, but rather a neutral headwind that requires monitoring.

Frequently Asked Questions

What does the Gross Margin tell investors about LH?

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 LH'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.