TDOCNEUTRAL

Gross Margin

67.8%

Higher than 44% of Healthcare sector peers

Updated 22h ago

Sector Performance

44th percentile

TDOC

67.8%

Sector Median

68.9%

Sector Avg

-20.2%

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Deep Analysis

The gross margin of 67.8% means that for every dollar of revenue, Teladoc keeps $0.678 after paying the direct costs of delivering its healthcare services.

This is slightly below the sector median of 68.9%, placing the company at the 44th percentile among healthcare peers — a middle-of-the-pack position. Year-over-year change is not available, but quarter-over-quarter the margin rose by 28.4 percentage points from 52.8% to 67.8%. The combination of a gross margin just below the sector median and a sharp quarterly improvement suggests that recent cost or pricing changes may have reduced near-term risk, though the trend’s durability is uncertain given limited history. This metric supports the NEUTRAL verdict: the current level shows neither a clear competitive advantage nor a disadvantage versus peers, and the recent jump has not yet been validated over multiple quarters.

Frequently Asked Questions

What does the Gross Margin tell investors about TDOC?

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 TDOC's Gross Margin compare to its sector?

TDOC's Gross Margin of 67.8% compares to a Healthcare sector median of 68.9%, placing it in the 44th percentile.

Who are TDOC's closest peers by Gross Margin?

The closest Healthcare peers by Gross Margin include: BLUE (68.4%), AMGN (68.2%), TECH (66.9%), NTRA (64.8%), RMD (62.2%).

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.