DropboxMEX:DBX 59 Gross Margin % is 79.65% as of Mar. 2026, which is 1% above its 10-year median of 78.88. GuruFocus rates MEX:DBX with a GF Score™ of 59/100 and a GF Value™ of MXN640.44 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,685 Software companies, Dropbox ranks better than 88.34% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Dropbox's Gross Profit for the
three
months ended in Mar. 2026 was MXN9,042 Mil. Dropbox's Revenue for the
three
months ended in Mar. 2026 was MXN11,352 Mil. Therefore, Dropbox's Gross Margin % for the quarter that ended in Mar. 2026 was 79.65%.
The historical rank and industry rank for Dropbox's Gross Margin % or its related term are showing as below:
MEX:DBX'
s Gross Margin % Range Over the Past 10 Years
Min: 53.76 Med: 78.88 Max: 82.53
Current: 79.72
During the past 11 years, the highestGross Margin % of Dropbox was 82.53%. The lowest was 53.76%. And the median was 78.88%.
MEX:DBX's Gross Margin % is ranked better than 88.34% of 2685
companies
in the Software industry
Industry Median: 40.45
vs MEX:DBX: 79.72
Dropbox had a gross margin of 79.65% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Dropbox was 0.70% per year.
Dropbox (MEX:DBX) 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
Dropbox had a gross margin of 79.65% 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.
Dropbox Gross Margin % Related Terms
Dropbox Gross Margin % Historical Data
* Premium members only.
The historical data trend for Dropbox'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.
MEX:DBX vs PATH, DOX, ZETA: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Dropbox'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.
Dropbox Gross Margin % vs Software Industry
For the Software industry and Technology sector, Dropbox's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dropbox'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.
Dropbox (MEX:DBX) has a Gross Margin % of 79.65% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Dropbox and its competitors. This is near median its historical median of 78.88. Over the past decade, Dropbox's Gross Margin % has ranged from 53.76 to 82.53. According to the industry distribution chart, Dropbox ranks #313 out of 2685 companies in the Software industry, placing it in the top 11.7%.
Is Dropbox's Gross Margin % too high?
Dropbox's current Gross Margin % of 79.65% is near median its 10-year median of 78.88. Over the past 10 years, this metric has ranged from a low of 53.76 to a high of 82.53. The Software industry median Gross Margin % is 40.45. Dropbox's value of 79.65% is 96.9% above this industry median. Based on the distribution chart, Dropbox ranks #313 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Dropbox has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dropbox's Gross Margin % compare to PATH and DOX?
According to the Software industry distribution chart, Dropbox ranks #313 out of 2685 companies for Gross Margin %. This places Dropbox in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Dropbox's value of 79.65% is 96.9% above this benchmark. Historically, Dropbox's own Gross Margin % has ranged from 53.76 to 82.53 over the past decade. While the company's 10-year median is 78.88 vs. the industry median of 40.45, Dropbox 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 2,685 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. Dropbox's current Gross Margin % of 79.65% is 96.9% 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 Dropbox 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. Dropbox's current Gross Margin % is 79.65%, which is near median its own 10-year median of 78.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dropbox stock overvalued right now?
Based on GuruFocus' analysis, Dropbox (MEX:DBX) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN640.44, compared to a current price of MXN493.10 — trading 23% below its estimated fair value. The current Gross Margin % is 79.65%, which is near median its 10-year median of 78.88 and 96.9% above the Software industry median of 40.45. Dropbox's overall GF Score™ is 59/100 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 Dropbox (MEX:DBX), the current Gross Margin % is 79.65% 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 Dropbox (MEX:DBX) Overvalued in 2026?
Based on GuruFocus' analysis, Dropbox stock appears to be undervalued.
The current stock price of MXN493.10 is trading 23% below its estimated GF Value™ of MXN640.44.
GuruFocus considers Dropbox to be Modestly Undervalued.
Key valuation signals for MEX:DBX:
Gross Margin %: 79.65% (near median its 10-year median of 78.88)
GF Value™: MXN640.44 vs. price of MXN493.10 (23% below fair value)
Industry Position: 96.9% above the Software median (#313 of 2685)
No single metric tells the full story. See the MEX:DBX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dropbox provides cloud storage and content collaboration tools, focusing on individuals and small to midsize businesses. Founded in 2007, Dropbox was a pioneer in the file sync and share market. In recent years, the firm has been emphasizing its Dash product, which facilitates AI-powered universal search across unstructured cloud data.
59GF Score
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