THCNEUTRAL

THC Gross Margin Analysis

83.7%

Updated 201h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its services, so 83.7% means THC retains $0.837 of every dollar in sales before other expenses.

Sector Performance

95th percentile

THC

83.7%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

83.4%(Jul 2026)

→ Stable

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its services, so 83.7% means THC retains $0.837 of every dollar in sales before other expenses.

That figure sits far above the sector median of 46.4%, placing THC in the 95th percentile among peers, indicating a high-margin business relative to its sector. The trend direction over the last eight quarters is N/A, and the year-over-year change is also N/A, but the quarter-over-quarter change is +0.4%, moving from 83.4% to 83.7% in the most recent period. With a very high level and only a slight sequential uptick, the margin story shows stability but no evidence of acceleration, limiting both upside surprise and near-term downside risk from margin compression. A high, stable gross margin lowers operating risk, yet the lack of trend data and the neutral overall verdict mean this metric alone does not push the stock toward a bullish stance. The metric supports the NEUTRAL verdict: it confirms a strong current position but offers no forward momentum to justify a more positive rating.

Frequently Asked Questions

What does the Gross Margin tell investors about THC?

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.

Who are THC's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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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.