Pony AIPONY -3.82%13 Gross Margin % is 16.24% as of Mar. 2026, which is 31% below its 10-year median of 23.48. GuruFocus rates PONY with a GF Score™ of 13/100. The stock has 2 warning signs investors should review. Among 2,685 Software companies, Pony AI ranks worse than 84.99% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Pony AI's Gross Profit for the
three
months ended in Mar. 2026 was $5.6 Mil. Pony AI's Revenue for the
three
months ended in Mar. 2026 was $34.3 Mil. Therefore, Pony AI's Gross Margin % for the quarter that ended in Mar. 2026 was 16.24%.
The historical rank and industry rank for Pony AI's Gross Margin % or its related term are showing as below:
PONY'
s Gross Margin % Range Over the Past 10 Years
Min: 15.2 Med: 23.48 Max: 77.74
Current: 15.79
During the past 5 years, the highestGross Margin % of Pony AI was 77.74%. The lowest was 15.20%. And the median was 23.48%.
PONY's Gross Margin % is ranked worse than 84.99% of 2685
companies
in the Software industry
Industry Median: 40.45
vs PONY: 15.79
Pony AI had a gross margin of 16.24% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Pony AI was 0.00% per year.
Pony AI (NAS:PONY) 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
Pony AI had a gross margin of 16.24% 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.
Pony AI Gross Margin % Related Terms
Pony AI Gross Margin % Historical Data
* Premium members only.
The historical data trend for Pony AI'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.
PONY vs EXLS, SAIC, EPAM: Gross Margin % Comparison
For the Information Technology Services subindustry, Pony AI'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.
Pony AI Gross Margin % vs Software Industry
For the Software industry and Technology sector, Pony AI's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pony AI'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.
Pony AI (PONY) has a Gross Margin % of 16.24% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Pony AI and its competitors. This is 31% below median its historical median of 23.48. Over the past decade, Pony AI's Gross Margin % has ranged from 15.20 to 77.74. According to the industry distribution chart, Pony AI ranks #2282 out of 2685 companies in the Software industry, placing it in the top 85%.
Is Pony AI's Gross Margin % too high?
Pony AI's current Gross Margin % of 16.24% is 31% below median its 10-year median of 23.48. Over the past 10 years, this metric has ranged from a low of 15.20 to a high of 77.74. The Software industry median Gross Margin % is 40.45. Pony AI's value of 16.24% is 59.9% below this industry median. Based on the distribution chart, Pony AI ranks #2282 out of 2685 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Pony AI has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Pony AI's Gross Margin % compare to EXLS and SAIC?
According to the Software industry distribution chart, Pony AI ranks #2282 out of 2685 companies for Gross Margin %. This places Pony AI in the lower half of its industry. The industry median Gross Margin % is 40.45. Pony AI's value of 16.24% is 59.9% below this benchmark. Historically, Pony AI's own Gross Margin % has ranged from 15.20 to 77.74 over the past decade. While the company's 10-year median is 23.48 vs. the industry median of 40.45, Pony AI 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 40.45, 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. Pony AI's current Gross Margin % of 16.24% is 59.9% 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 Pony AI 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. Pony AI's current Gross Margin % is 16.24%, which is 31% below median its own 10-year median of 23.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pony AI stock overvalued right now?
Pony AI (PONY) has a current Gross Margin % of 16.24%. The current Gross Margin % is 16.24%, which is 31% below median its 10-year median of 23.48 and 59.9% below the Software industry median of 40.45. Pony AI's overall GF Score™ is 13/100 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 Pony AI (PONY), the current Gross Margin % is 16.24% 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.
Pony AI Inc is an artificial intelligence technology company that is principally engaged in the operation and development of autonomous vehicles. It operates fully driverless robotaxis through the PonyPilot mobile app in Beijing, Shanghai, Guangzhou, and Shenzhen. The company operates a fleet of robotaxis. The Group conducts its operations mainly in the People's Republic of China (PRC) and the United States of America (U.S.) through subsidiaries. Key revenue is generated from the Peoples Republic of China.
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