Smith Micro SoftwareFRA:SS90 60 Gross Margin % is 78.42% as of Mar. 2026, which is 3% above its 10-year median of 76.02. GuruFocus rates FRA:SS90 with a GF Score™ of 60/100 and a GF Value™ of €9.28. The stock has 4 warning signs investors should review. Among 2,683 Software companies, Smith Micro Software ranks better than 84.87% on this metric.
Smith Micro Software Inc gross margin has been in long-term decline. The average rate of decline per year is -3.5%.
The historical rank and industry rank for Smith Micro Software's Gross Margin % or its related term are showing as below:
FRA:SS90'
s Gross Margin % Range Over the Past 10 Years
Min: 70.2 Med: 76.02 Max: 90.94
Current: 75.49
During the past 13 years, the highestGross Margin % of Smith Micro Software was 90.94%. The lowest was 70.20%. And the median was 76.02%.
FRA:SS90's Gross Margin % is ranked better than 84.87% of 2683
companies
in the Software industry
Industry Median: 40.45
vs FRA:SS90: 75.49
Smith Micro Software had a gross margin of 78.42% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Smith Micro Software was -3.50% per year.
Smith Micro Software (FRA:SS90) Gross Margin % Explanation
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
Smith Micro Software had a gross margin of 78.42% for the quarter that ended in Mar. 2026 => 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.
Smith Micro Software Gross Margin % Related Terms
Smith Micro Software Gross Margin % Historical Data
* Premium members only.
The historical data trend for Smith Micro Software'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.
FRA:SS90 vs CYN, FALC, INUV: Gross Margin % Comparison
For the Software - Application subindustry, Smith Micro Software'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.
Smith Micro Software Gross Margin % vs Software Industry
For the Software industry and Technology sector, Smith Micro Software's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Smith Micro Software'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.
Smith Micro Software (FRA:SS90) has a Gross Margin % of 78.42% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Smith Micro Software and its competitors. This is near median its historical median of 76.02. Over the past decade, Smith Micro Software's Gross Margin % has ranged from 70.20 to 90.94. According to the industry distribution chart, Smith Micro Software ranks #406 out of 2683 companies in the Software industry, placing it in the top 15.1%.
Is Smith Micro Software's Gross Margin % too high?
Smith Micro Software's current Gross Margin % of 78.42% is near median its 10-year median of 76.02. Over the past 10 years, this metric has ranged from a low of 70.20 to a high of 90.94. The Software industry median Gross Margin % is 40.45. Smith Micro Software's value of 78.42% is 93.9% above this industry median. Based on the distribution chart, Smith Micro Software ranks #406 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Smith Micro Software has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Smith Micro Software's Gross Margin % compare to CYN and FALC?
According to the Software industry distribution chart, Smith Micro Software ranks #406 out of 2683 companies for Gross Margin %. This places Smith Micro Software in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Smith Micro Software's value of 78.42% is 93.9% above this benchmark. Historically, Smith Micro Software's own Gross Margin % has ranged from 70.20 to 90.94 over the past decade. While the company's 10-year median is 76.02 vs. the industry median of 40.45, Smith Micro Software 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 2,683 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. Smith Micro Software's current Gross Margin % of 78.42% is 93.9% 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 Smith Micro Software 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. Smith Micro Software's current Gross Margin % is 78.42%, which is near median its own 10-year median of 76.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smith Micro Software stock overvalued right now?
Smith Micro Software (FRA:SS90) has a current Gross Margin % of 78.42%. The stock's GF Value™ is €9.28, compared to a current price of €10.72 — trading 15.5% above its estimated fair value. The current Gross Margin % is 78.42%, which is near median its 10-year median of 76.02 and 93.9% above the Software industry median of 40.45. Smith Micro Software's overall GF Score™ is 60/100 with 4 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 Smith Micro Software (FRA:SS90), the current Gross Margin % is 78.42% as of Mar. 2026. 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 Smith Micro Software (FRA:SS90) Overvalued in 2026?
Based on GuruFocus' analysis, Smith Micro Software stock appears to be overvalued.
The current stock price of €10.72 is trading 15.5% above its estimated GF Value™ of €9.28.
Key valuation signals for FRA:SS90:
Gross Margin %: 78.42% (near median its 10-year median of 76.02)
GF Value™: €9.28 vs. price of €10.72 (15.5% above fair value)
Industry Position: 93.9% above the Software median (#406 of 2683)
No single metric tells the full story. See the FRA:SS90 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smith Micro Software Inc provides software solutions that simplify and enhance the mobile experience to some of the wireless service providers around the globe. The company's solutions include SafePath product suite provides comprehensive and easy-to-use tools to protect family digital lifestyles and manage connected devices both inside and outside the home; CommSuite premium messaging platform helps mobile service providers deliver a next-generation voicemail experience to mobile subscribers, while monetizing a legacy cost-center; and ViewSpot its retail display management platform provided wireless carriers and retailers with a way to bring powerful on-screen, interactive demos to life. It operates in single segment: Wireless.
60GF Score
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