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RC365 HoldingLSE:RCGH -5.54% Gross Margin % is -7.93% as of Sep. 2025. The stock has 9 warning signs investors should review. Among 2,684 Software companies, RC365 Holding ranks worse than 52.91% 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
RC365 Holding had a gross margin of -7.93% for the quarter that ended in Sep. 2025 => No sustainable 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.
RC365 Holding Gross Margin % Related Terms
RC365 Holding Gross Margin % Historical Data
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The historical data trend for RC365 Holding'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:RCGH vs MSFT, PLTR, ORCL: Gross Margin % Comparison
For the Software - Infrastructure subindustry, RC365 Holding'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.
RC365 Holding Gross Margin % vs Software Industry
For the Software industry and Technology sector, RC365 Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where RC365 Holding'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.
RC365 Holding (LSE:RCGH) has a Gross Margin % of -7.93% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on RC365 Holding and its competitors. Over the past decade, RC365 Holding's Gross Margin % has ranged from 37.51 to 99.27. According to the industry distribution chart, RC365 Holding ranks #1420 out of 2684 companies in the Software industry, placing it in the top 52.9%.
Is RC365 Holding's Gross Margin % too high?
RC365 Holding's current Gross Margin % is -7.93%. Over the past 10 years, this metric has ranged from a low of 37.51 to a high of 99.27. Based on the distribution chart, RC365 Holding ranks #1420 out of 2684 companies in the Software industry, which is below the industry midpoint.
How does RC365 Holding's Gross Margin % compare to MSFT and PLTR?
According to the Software industry distribution chart, RC365 Holding ranks #1420 out of 2684 companies for Gross Margin %. This places RC365 Holding in the lower half of its industry. The industry median Gross Margin % is 40.07. Historically, RC365 Holding's own Gross Margin % has ranged from 37.51 to 99.27 over the past decade. 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 40.07, based on 2,684 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. 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 RC365 Holding and its competitors. For the Software industry, the median Gross Margin % is 40.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RC365 Holding's current Gross Margin % is -7.93%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RC365 Holding stock overvalued right now?
Based on GuruFocus' analysis, RC365 Holding (LSE:RCGH) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.02, compared to a current price of £0.04 — trading 91% above its estimated fair value. The current Gross Margin % is -7.93%. 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 RC365 Holding (LSE:RCGH), the current Gross Margin % is -7.93% 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.
RC365 Holding PLC is a UK-listed fintech holding company whose operations are based primarily in Hong Kong. Through its subsidiaries, it provides IT software development and payment solutions, including remittance and payment services, prepaid card and virtual account support, and related fintech products for individual and business customers. It also has interests in money lending and media production services. The group serves customers across Hong Kong, Japan, ASEAN countries, the United Kingdom and Europe, with Hong Kong representing its largest market. Its revenue is derived mainly from software development and payment-related service fees rather than from holding investments, despite its structure as an investment holding company. The business operates largely through wholly owned operating subsidiaries, and its shares trade on the London Stock Exchange under the ticker L2G.
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