ZDCAUTIOUS

ZD Gross Margin Analysis

83.4%

Higher than 88% of Communication Services sector peers

Updated 310h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after subtracting the direct costs of producing its goods or services.

Sector Performance

88th percentile

83.4%

Sector Median

54.0%

Sector Avg

58.6%

Prior Period

66.7%(May 2026)

↑ Improving

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after subtracting the direct costs of producing its goods or services.

ZD’s current gross margin of 83.4% is far above the Communication Services sector median of 54.9%, placing it in the 88th percentile among peers. The year-over-year change is not available, but the quarter-over-quarter change shows a sharp increase of +25.0% from the prior quarter’s 66.7%. This combination of a very high margin with a recent upward trend suggests improving pricing power or cost control, which reduces near-term risk. However, the overall CAUTIOUS verdict on ZD likely reflects other concerns outside this metric. Therefore, the strong gross margin performance directly contradicts that cautious view.

Frequently Asked Questions

What does the Gross Margin tell investors about ZD?

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 ZD's Gross Margin compare to its sector?

ZD's Gross Margin of 83.4% compares to a Communication Services sector median of 54.0%, placing it in the 88th percentile.

Who are ZD's closest peers by Gross Margin?

The closest Communication Services peers by Gross Margin include: TWTR (54.0%), NFLX (51.9%), SNAP (56.5%), DASH (50.6%), TWLO (48.6%).

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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.