SPWRCAUTIOUS

SPWR Gross Margin Analysis

61.4%

Higher than 87% of Energy sector peers

Updated 24h ago·SEC filings & market data

Key Takeaway

SPWR's gross margin of 61.4% means that for every dollar of revenue, the company retains 61.4 cents after paying the direct costs to produce its solar products—a measure of core profitability.

Sector Performance

87th percentile

SPWR

61.4%

Sector Median

32.4%

Sector Avg

39.3%

Prior Period

57.4%(Jun 2026)

↑ Improving

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Deep Analysis

SPWR's gross margin of 61.4% means that for every dollar of revenue, the company retains 61.4 cents after paying the direct costs to produce its solar products—a measure of core profitability.

This figure far exceeds the sector median of 32.4%, placing SPWR in the 87th percentile among its energy peers, indicating it is among the most profitable in its group. Over the last eight quarters the trend is increasing, though the year-over-year change is not available; the most recent quarter-over-quarter change is a gain of 7.0 percentage points. A high and rising gross margin typically signals strong pricing power or effective cost management, which can reduce investment risk, but the overall caution suggests other factors—such as debt or demand uncertainty—may offset this advantage. This metric directly contradicts the overall CAUTIOUS verdict, as a 61.4% margin and upward trend would normally support a more positive outlook.

Frequently Asked Questions

What does the Gross Margin tell investors about SPWR?

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 SPWR's Gross Margin compare to its sector?

SPWR's Gross Margin of 61.4% compares to a Energy sector median of 32.4%, placing it in the 87th percentile.

Who are SPWR's closest peers by Gross Margin?

The closest Energy peers by Gross Margin include: NOG (32.9%), CVE (31.8%), LNG (31.7%), PXD (34.2%), RUN (30.4%).

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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.