RARE Gross Margin 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