FirstWave Cloud TechnologyASX:FCT -10.00% Gross Margin % is 94.71% as of Dec. 2025, which is 46% above its 10-year median of 64.97. The stock has 6 warning signs investors should review. Among 2,685 Software companies, FirstWave Cloud Technology ranks better than 96.83% on this metric.
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
FirstWave Cloud Technology had a gross margin of 94.71% for the quarter that ended in Dec. 2025 => 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.
FirstWave Cloud Technology Gross Margin % Related Terms
FirstWave Cloud Technology Gross Margin % Historical Data
* 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.
ASX:FCT vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, FirstWave Cloud 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.
FirstWave Cloud Technology Gross Margin % vs Software Industry
For the Software industry and Technology sector, FirstWave Cloud Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where FirstWave Cloud 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.
FirstWave Cloud Technology (ASX:FCT) has a Gross Margin % of 94.71% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on FirstWave Cloud Technology and its competitors. This is 46% above median its historical median of 64.97. Over the past decade, FirstWave Cloud Technology's Gross Margin % has ranged from 53.96 to 92.93. According to the industry distribution chart, FirstWave Cloud Technology ranks #85 out of 2685 companies in the Software industry, placing it in the top 3.2%.
Is FirstWave Cloud Technology's Gross Margin % too high?
FirstWave Cloud Technology's current Gross Margin % of 94.71% is 46% above median its 10-year median of 64.97. Over the past 10 years, this metric has ranged from a low of 53.96 to a high of 92.93. The Software industry median Gross Margin % is 40.45. FirstWave Cloud Technology's value of 94.71% is 134.1% above this industry median. Based on the distribution chart, FirstWave Cloud Technology ranks #85 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers.
How does FirstWave Cloud Technology's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, FirstWave Cloud Technology ranks #85 out of 2685 companies for Gross Margin %. This places FirstWave Cloud Technology in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. FirstWave Cloud Technology's value of 94.71% is 134.1% above this benchmark. Historically, FirstWave Cloud Technology's own Gross Margin % has ranged from 53.96 to 92.93 over the past decade. While the company's 10-year median is 64.97 vs. the industry median of 40.45, FirstWave Cloud Technology has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,685 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. FirstWave Cloud Technology's current Gross Margin % of 94.71% is 134.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on FirstWave Cloud Technology and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FirstWave Cloud Technology's current Gross Margin % is 94.71%, which is 46% above median its own 10-year median of 64.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FirstWave Cloud Technology stock overvalued right now?
Based on GuruFocus' analysis, FirstWave Cloud Technology (ASX:FCT) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.01, compared to a current price of A$0.01 — trading 10% below its estimated fair value. The current Gross Margin % is 94.71%, which is 46% above median its 10-year median of 64.97 and 134.1% above the Software industry median of 40.45. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For FirstWave Cloud Technology (ASX:FCT), the current Gross Margin % is 94.71% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
FirstWave Cloud Technology Ltd is a technology company offering a comprehensive end-to-end solution for network discovery, management, and cybersecurity by developing and selling network monitoring and internet security software. Its product offerings include NMIS9 (Network Management Information System), Secure Traffic Manager Platform, CyberCision Platform, and Open-Audit (a network auditing discovery solution), among others. The company mainly caters to the needs of MSPs and service providers, government entities, and enterprises. It has only one reportable segment, being the development and sale of software. Geographically, the company generates maximum revenue from its business in Australia, followed by the USA and Canada, Latin America, and the Rest of the world.
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