NETCAUTIOUS

NET Gross Margin Analysis

71.2%

Higher than 62% of Technology sector peers

Updated 22h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying direct costs of delivering its products or services — NET retains 71.2% of each dollar earned, meaning it has a strong cushion to cover operating expenses.

Sector Performance

62th percentile

NET

71.2%

Sector Median

65.3%

Sector Avg

60.5%

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Deep Analysis

This figure sits above the Technology sector median of 65.2% and places NET at the 62nd percentile among its sector peers, indicating better-than-average efficiency relative to its industry. The trend for this metric is not available: no year-over-year change is reported, no quarter-over-quarter change is reported, and there is only a single historical value of 71.2% for the most recent period. The combination of a high current gross margin with no trend history offers a limited risk picture — the level itself suggests solid unit economics, but the absence of direction means investors cannot assess whether this advantage is stable, improving, or eroding. This metric supports the overall CAUTIOUS verdict because a strong gross margin alone does not confirm a favorable outlook without evidence of sustained or improving performance, and the lack of trend data introduces uncertainty.

Frequently Asked Questions

What does the Gross Margin tell investors about NET?

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 NET's Gross Margin compare to its sector?

NET's Gross Margin of 71.2% compares to a Technology sector median of 65.3%, placing it in the 62th percentile.

Who are NET's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: MTSI (56.9%), DOCN (56.1%), NVDA (74.9%), GRAB (43.4%), APLD (42.5%).

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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.