ReadyTech HoldingsASX:RDY +4.43%77 Gross Margin % is 93.43% as of Dec. 2025, which is 0% above its 10-year median of 93.06. GuruFocus rates ASX:RDY with a GF Score™ of 77/100 and a GF Value™ of A$3.35 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,681 Software companies, ReadyTech Holdings ranks better than 97.17% 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
ReadyTech Holdings had a gross margin of 93.43% 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.
ReadyTech Holdings Gross Margin % Related Terms
ReadyTech Holdings Gross Margin % Historical Data
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The historical data trend for ReadyTech Holdings'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.
ASX:RDY vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, ReadyTech Holdings'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.
ReadyTech Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, ReadyTech Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ReadyTech Holdings'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.
ReadyTech Holdings (ASX:RDY) has a Gross Margin % of 93.43% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on ReadyTech Holdings and its competitors. This is near median its historical median of 93.06. Over the past decade, ReadyTech Holdings' Gross Margin % has ranged from 92.02 to 94.02. According to the industry distribution chart, ReadyTech Holdings ranks #76 out of 2681 companies in the Software industry, placing it in the top 2.8%.
Is ReadyTech Holdings' Gross Margin % too high?
ReadyTech Holdings' current Gross Margin % of 93.43% is near median its 10-year median of 93.06. Over the past 10 years, this metric has ranged from a low of 92.02 to a high of 94.02. The Software industry median Gross Margin % is 40.41. ReadyTech Holdings' value of 93.43% is 131.2% above this industry median. Based on the distribution chart, ReadyTech Holdings ranks #76 out of 2681 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, ReadyTech Holdings has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does ReadyTech Holdings' Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, ReadyTech Holdings ranks #76 out of 2681 companies for Gross Margin %. This places ReadyTech Holdings in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.41. ReadyTech Holdings' value of 93.43% is 131.2% above this benchmark. Historically, ReadyTech Holdings' own Gross Margin % has ranged from 92.02 to 94.02 over the past decade. While the company's 10-year median is 93.06 vs. the industry median of 40.41, ReadyTech Holdings 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 40.41, based on 2,681 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. ReadyTech Holdings's current Gross Margin % of 93.43% is 131.2% 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 ReadyTech Holdings and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ReadyTech Holdings's current Gross Margin % is 93.43%, which is near median its own 10-year median of 93.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ReadyTech Holdings stock overvalued right now?
Based on GuruFocus' analysis, ReadyTech Holdings (ASX:RDY) is currently considered Possible Value Trap. The stock's GF Value™ is A$3.35, compared to a current price of A$1.65 — trading 50.7% below its estimated fair value. The current Gross Margin % is 93.43%, which is near median its 10-year median of 93.06 and 131.2% above the Software industry median of 40.41. ReadyTech Holdings' overall GF Score™ is 77/100 with 6 warning signs to review. 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 ReadyTech Holdings (ASX:RDY), the current Gross Margin % is 93.43% 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.
Is ReadyTech Holdings (ASX:RDY) Overvalued in 2026?
Based on GuruFocus' analysis, ReadyTech Holdings stock appears to be undervalued.
The current stock price of A$1.65 is trading 50.7% below its estimated GF Value™ of A$3.35.
GuruFocus considers ReadyTech Holdings to be Possible Value Trap.
Key valuation signals for ASX:RDY:
Gross Margin %: 93.43% (near median its 10-year median of 93.06)
GF Value™: A$3.35 vs. price of A$1.65 (50.7% below fair value)
Industry Position: 131.2% above the Software median (#76 of 2681)
No single metric tells the full story. See the ASX:RDY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ReadyTech Holdings Ltd is a provider of people management software for educators, employers, and facilitators of career transitions. Its products are JR Plus, A2E, HR3, ePayroll, JR Gov, Aussiepay, and others. The company's operating segments include Education and Work pathways, Workforce Solutions, and Government and Justice. It generates maximum revenue from the Government and Justice. The education segment mainly provides products and services to tertiary education providers. Its Workforce segment provides products and services to a mid-sized company across various industries. The Government division provides government and justice case management software as a service solution to local governments, state governments, and justice departments.
77GF Score
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