RDDT Gross Margin Analysis
Updated 142h ago·SEC filings & market data
Key Takeaway
Gross margin is the percentage of revenue a company keeps after paying direct production costs, and RDDT's current 91.3% means it retains roughly 91 cents of every dollar before other expenses.
Sector Performance
99th percentileRDDT
91.3%
Sector Median
47.4%
Sector Avg
48.1%
Prior Period
91.5%(Jul 2026)
Deep Analysis
Gross margin is the percentage of revenue a company keeps after paying direct production costs, and RDDT's current 91.3% means it retains roughly 91 cents of every dollar before other expenses.
This sits far above the sector median of 45.4%, placing the company in the 99th percentile of its peers, which indicates a high-margin business model. The trend is limited: year-over-year change is not available, and the quarter-over-quarter change is -0.2%, with the prior value at 91.5% and no eight-quarter history reported. The combination of an exceptionally high margin with a slight quarterly dip suggests low immediate cost pressure, but the missing longer-term trend leaves little basis to judge durability. That level alone points to a competitive advantage, while the small decline and lack of historical data introduce uncertainty. Overall, the metric supports the NEUTRAL verdict because the margin strength is offset by an absence of trend evidence and a minor recent contraction.
Frequently Asked Questions
What does the Gross Margin tell investors about RDDT?
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.
Learn More About Gross Margin
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.
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91.3%
Sector Median
47.4%
Sector Avg
48.1%
How RDDT's Gross Margin compares to sector peers.
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