RARECAUTIOUS

RARE Gross Margin Analysis

84.1%

Updated 35h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying direct production costs, so 84.1% means the company keeps $0.841 from every dollar of sales after those costs.

Sector Performance

96th percentile

RARE

84.1%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

77.9%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin is the share of revenue left after paying direct production costs, so 84.1% means the company keeps $0.841 from every dollar of sales after those costs.

That level is far above the sector median of 44.9%, placing it in the 96th percentile among peers. The year-over-year change is not available, but the quarter-over-quarter change is +8.0%, with historical values of 84.1% most recently versus 77.9% prior. The combination of an extremely high margin and a positive quarterly move suggests the company has strong pricing power or cost advantages, which is an opportunity. That said, this metric contradicts the overall cautios verdict — a margin this far above peers and improving would normally support a more positive outlook. The cautious stance must therefore be driven by concerns elsewhere, such as growth, cash flow, or competitive risk.

Frequently Asked Questions

What does the Gross Margin tell investors about RARE?

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 RARE'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.