Frequency HoldingsFRQND +92.31% Gross Margin % is 55.60% as of Sep. 2025, which is 164% above its 10-year median of 21.05. The stock has 4 warning signs investors should review. Among 2,677 Software companies, Frequency Holdings ranks better than 80.8% on this metric.
The historical rank and industry rank for Frequency Holdings's Gross Margin % or its related term are showing as below:
FRQND'
s Gross Margin % Range Over the Past 10 Years
Min: -4833.33 Med: 21.05 Max: 71.12
Current: 71.12
During the past 8 years, the highestGross Margin % of Frequency Holdings was 71.12%. The lowest was -4833.33%. And the median was 21.05%.
FRQND's Gross Margin % is ranked better than 80.8% of 2677
companies
in the Software industry
Industry Median: 40.49
vs FRQND: 71.12
Frequency Holdings had a gross margin of 55.60% for the quarter that ended in Sep. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Frequency Holdings was 0.00% per year.
Frequency Holdings (OTCPK:FRQND) 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
Frequency Holdings had a gross margin of 55.60% for the quarter that ended in Sep. 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.
Frequency Holdings Gross Margin % Related Terms
Frequency Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Frequency 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.
FRQND vs GTCH, IBM, ACN: Gross Margin % Comparison
For the Information Technology Services subindustry, Frequency 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.
Frequency Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Frequency Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Frequency 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.
Frequency Holdings (FRQND) has a Gross Margin % of 55.60% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Frequency Holdings and its competitors. This is 164% above median its historical median of 21.05. According to the industry distribution chart, Frequency Holdings ranks #514 out of 2677 companies in the Software industry, placing it in the top 19.2%.
Is Frequency Holdings' Gross Margin % too high?
Frequency Holdings' current Gross Margin % of 55.60% is 164% above median its 10-year median of 21.05. The Software industry median Gross Margin % is 40.49. Frequency Holdings' value of 55.60% is 37.3% above this industry median. Based on the distribution chart, Frequency Holdings ranks #514 out of 2677 companies in the Software industry, which is in the top quartile — a strong position relative to peers.
How does Frequency Holdings' Gross Margin % compare to GTCH and IBM?
According to the Software industry distribution chart, Frequency Holdings ranks #514 out of 2677 companies for Gross Margin %. This places Frequency Holdings in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.49. Frequency Holdings' value of 55.60% is 37.3% above this benchmark. While the company's 10-year median is 21.05 vs. the industry median of 40.49, Frequency 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 40.49, based on 2,677 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. Frequency Holdings's current Gross Margin % of 55.60% is 37.3% 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 Frequency Holdings and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frequency Holdings's current Gross Margin % is 55.60%, which is 164% above median its own 10-year median of 21.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frequency Holdings stock overvalued right now?
Frequency Holdings (FRQND) has a current Gross Margin % of 55.60%. The current Gross Margin % is 55.60%, which is 164% above median its 10-year median of 21.05 and 37.3% above the Software industry median of 40.49. 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 Frequency Holdings (FRQND), the current Gross Margin % is 55.60% as of Sep. 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.
Frequency Holdings Inc is a technology-focused holding company. The Company's model is designed to compound value through independently managed subsidiaries and strategic investments, drawing from the long-term discipline of Berkshire Hathaway and the multi-brand architecture of Alphabet. It operates through its wholly owned subsidiary which serves as the Company's execution engine. ReachOut is a cybersecurity-first digital infrastructure platform delivering compliance readiness, proactive risk reduction, and operational support for small and mid-sized businesses. The business is built on recurring revenue, high retention, and measurable outcomes, providing a stable foundation of cashflow while continuing to scale.
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