RGTICAUTIOUS

RGTI Gross Margin Analysis

42.6%

Higher than 19% of Technology sector peers

Updated 1070h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after directly paying for the costs to produce its goods or services, here at 42.6%.

Sector Performance

19th percentile

RGTI

42.6%

Sector Median

65.7%

Sector Avg

61.2%

Prior Period

31.3%(Aug 2026)

↑ Improving

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after directly paying for the costs to produce its goods or services, here at 42.6%.

This sits well below the sector median of 65.7%, placing the company in the 16th percentile among technology peers, meaning most competitors retain a larger share of revenue. The year-over-year change is N/A, but the quarter-over-quarter change is +36.1%, climbing from 31.3% in the prior period; the eight-quarter trend direction is likewise unavailable. The combination of a low absolute margin with a sharp recent improvement suggests the company is still catching up to industry norms, creating both operational risk and potential upside if the gain continues. This metric supports the overall CAUTIOUS verdict: while the positive QoQ move is encouraging, the persistent gap to sector peers keeps the margin profile fragile.

Frequently Asked Questions

What does the Gross Margin tell investors about RGTI?

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 RGTI's Gross Margin compare to its sector?

RGTI's Gross Margin of 42.6% compares to a Technology sector median of 65.7%, placing it in the 19th percentile.

Who are RGTI's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: MODN (55.0%), ASML (53.0%), AMD (52.8%), MRVL (52.1%), SMTC (52.0%).

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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.