BokuLSE:BOKU +1.44%70 Gross Margin % is 25.99% as of Dec. 2025, which is 71% below its 10-year median of 91.00. GuruFocus rates LSE:BOKU with a GF Score™ of 70/100 and a GF Value™ of £2.47 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 2,678 Software companies, Boku ranks better than 71.88% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Boku's Gross Profit for the
six
months ended in Dec. 2025 was £12.71 Mil. Boku's Revenue for the
six
months ended in Dec. 2025 was £48.91 Mil. Therefore, Boku's Gross Margin % for the quarter that ended in Dec. 2025 was 25.99%.
Warning Sign:
Boku Inc gross margin has been in long-term decline. The average rate of decline per year is -8.8%.
The historical rank and industry rank for Boku's Gross Margin % or its related term are showing as below:
LSE:BOKU'
s Gross Margin % Range Over the Past 10 Years
Min: 61.73 Med: 91 Max: 97.52
Current: 61.73
During the past 12 years, the highestGross Margin % of Boku was 97.52%. The lowest was 61.73%. And the median was 91.00%.
LSE:BOKU's Gross Margin % is ranked better than 71.88% of 2678
companies
in the Software industry
Industry Median: 40.455
vs LSE:BOKU: 61.73
Boku had a gross margin of 25.99% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Boku was -8.80% per year.
Boku (LSE:BOKU) 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
Boku had a gross margin of 25.99% for the quarter that ended in Dec. 2025 => Competition eroding margins
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.
Boku Gross Margin % Related Terms
Boku Gross Margin % Historical Data
* Premium members only.
The historical data trend for Boku'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.
LSE:BOKU vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Boku'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.
Boku Gross Margin % vs Software Industry
For the Software industry and Technology sector, Boku's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Boku'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.
Boku (LSE:BOKU) has a Gross Margin % of 25.99% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Boku and its competitors. This is 71% below median its historical median of 91.00. Over the past decade, Boku's Gross Margin % has ranged from 61.73 to 97.52. According to the industry distribution chart, Boku ranks #753 out of 2678 companies in the Software industry, placing it in the top 28.1%.
Is Boku's Gross Margin % too high?
Boku's current Gross Margin % of 25.99% is 71% below median its 10-year median of 91.00. Over the past 10 years, this metric has ranged from a low of 61.73 to a high of 97.52. The Software industry median Gross Margin % is 40.46. Boku's value of 25.99% is 35.8% below this industry median. Based on the distribution chart, Boku ranks #753 out of 2678 companies in the Software industry, which is above the industry midpoint. Overall, Boku has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Boku's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Boku ranks #753 out of 2678 companies for Gross Margin %. This puts Boku in the upper half of its industry. The industry median Gross Margin % is 40.46. Boku's value of 25.99% is 35.8% below this benchmark. Historically, Boku's own Gross Margin % has ranged from 61.73 to 97.52 over the past decade. While the company's 10-year median is 91.00 vs. the industry median of 40.46, Boku has consistently been below 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 40.46, based on 2,678 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. Boku's current Gross Margin % of 25.99% is 35.8% below 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 Boku and its competitors. For the Software industry, the median Gross Margin % is 40.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Boku's current Gross Margin % is 25.99%, which is 71% below median its own 10-year median of 91.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Boku stock overvalued right now?
Based on GuruFocus' analysis, Boku (LSE:BOKU) is currently considered Possible Value Trap. The stock's GF Value™ is £2.47, compared to a current price of £1.41 — trading 42.9% below its estimated fair value. The current Gross Margin % is 25.99%, which is 71% below median its 10-year median of 91.00 and 35.8% below the Software industry median of 40.46. Boku's overall GF Score™ is 70/100 with 2 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 Boku (LSE:BOKU), the current Gross Margin % is 25.99% 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 Boku (LSE:BOKU) Overvalued in 2026?
Based on GuruFocus' analysis, Boku stock appears to be undervalued.
The current stock price of £1.41 is trading 42.9% below its estimated GF Value™ of £2.47.
GuruFocus considers Boku to be Possible Value Trap.
Key valuation signals for LSE:BOKU:
Gross Margin %: 25.99% (71% below median its 10-year median of 91.00)
GF Value™: £2.47 vs. price of £1.41 (42.9% below fair value)
Industry Position: 35.8% below the Software median (#753 of 2678)
No single metric tells the full story. See the LSE:BOKU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Boku Inc is a carrier billing company. Its technology enables mobile phone users to buy goods and services and make online payments using their mobile devices. The company's operating segment is Payments. It generates maximum revenue from the Payments segment, which is engaged in the provision of a payment platform that enables mobile phone users to buy goods and services and charge them to their mobile phone or prepaid balance. Its geographical segments are the Americas, APAC, and EMEA(Europe, the Middle East & Africa). The majority is from APAC.
70GF Score
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