The historical rank and industry rank for Alkami Technology's Gross Margin % or its related term are showing as below:
ALKT'
s Gross Margin % Range Over the Past 10 Years
Min: 41.39 Med: 53.73 Max: 58.9
Current: 58.9
During the past 6 years, the highestGross Margin % of Alkami Technology was 58.90%. The lowest was 41.39%. And the median was 53.73%.
ALKT's Gross Margin % is ranked better than 69.05% of 2630
companies
in the Software industry
Industry Median: 40.935
vs ALKT: 58.90
Alkami Technology had a gross margin of 59.35% for the quarter that ended in Dec. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Alkami Technology was 5.30% per year.
Alkami Technology Gross Margin % Historical Data
The historical data trend for Alkami Technology's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Alkami Technology's Gross Margin %
For the Software - Application subindustry, Alkami Technology's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alkami Technology's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Alkami Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alkami Technology's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Alkami Technology had a gross margin of 59.35% for the quarter that ended in Dec. 2024 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Alkami Technology Gross Margin % Related Terms
Thank you for viewing the detailed overview of Alkami Technology's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Alkami Technology Inc is a cloud-based digital banking solutions provider. Alkami Platform, allows FIs to onboard and engage new users, accelerate revenues and meaningfully improve operational efficiency with the support of a proprietary, true cloud-based, multi-tenant architecture.
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