MerlinMRLN -6.06%6 Gross Margin % is -63.67% as of Mar. 2026. GuruFocus rates MRLN with a GF Score™ of 6/100. Among 342 Aerospace & Defense companies, Merlin ranks worse than 97.37% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Merlin's Gross Profit for the
three
months ended in Mar. 2026 was $-0.64 Mil. Merlin's Revenue for the
three
months ended in Mar. 2026 was $1.00 Mil. Therefore, Merlin's Gross Margin % for the quarter that ended in Mar. 2026 was -63.67%.
The historical rank and industry rank for Merlin's Gross Margin % or its related term are showing as below:
MRLN'
s Gross Margin % Range Over the Past 10 Years
Min: -591.62 Med: -282.45 Max: 26.72
Current: -63.67
During the past 2 years, the highestGross Margin % of Merlin was 26.72%. The lowest was -591.62%. And the median was -282.45%.
MRLN's Gross Margin % is ranked worse than 97.37% of 342
companies
in the Aerospace & Defense industry
Industry Median: 26.65
vs MRLN: -63.67
Merlin had a gross margin of -63.67% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Merlin was 0.00% per year.
Merlin (NAS:MRLN) 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
Merlin had a gross margin of -63.67% for the quarter that ended in Mar. 2026 => 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.
Merlin Gross Margin % Related Terms
Merlin Gross Margin % Historical Data
* Premium members only.
The historical data trend for Merlin'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.
Merlin Gross Margin % Chart
Merlin Annual Data
Trend
Dec23
Dec24
Gross Margin %
26.72
-591.62
Merlin Quarterly Data
Dec23
Dec24
Mar25
Sep25
Mar26
Gross Margin %
0.00
-109.98
17.74
0.00
-63.67
MRLN vs EH, SWBI, NPK: Gross Margin % Comparison
For the Aerospace & Defense subindustry, Merlin'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.
Merlin Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Merlin's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Merlin'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.
Merlin (MRLN) has a Gross Margin % of -63.67% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Merlin and its competitors. According to the industry distribution chart, Merlin ranks #333 out of 342 companies in the Aerospace & Defense industry, placing it in the top 97.4%.
Is Merlin's Gross Margin % too high?
Merlin's current Gross Margin % is -63.67%. Based on the distribution chart, Merlin ranks #333 out of 342 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Merlin has a GF Score™ of 6/100, reflecting its overall financial health beyond just this single metric.
How does Merlin's Gross Margin % compare to EH and SWBI?
According to the Aerospace & Defense industry distribution chart, Merlin ranks #333 out of 342 companies for Gross Margin %. This places Merlin in the lower half of its industry. The industry median Gross Margin % is 26.65. 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 an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.65, based on 342 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 Merlin and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merlin's current Gross Margin % is -63.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merlin stock overvalued right now?
Merlin (MRLN) has a current Gross Margin % of -63.67%. The current Gross Margin % is -63.67%. Merlin's overall GF Score™ is 6/100. 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 Merlin (MRLN), the current Gross Margin % is -63.67% 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.
Merlin Inc is focused on developing autonomous flight software for legacy and next-generation airborne systems. Its aircraft-agnostic, AI-based software supports takeoff-to-landing autonomous operations for military and civil aviation programs. The company aims to build an AI-based operating software platform intended to support autonomous flight operations across a range of aircraft types.
6GF Score
Get the complete analysis for MRLN
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MRLN has been successfully added to your 