Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
RedCloud HoldingsRCT +7.75%4 Gross Margin % is 70.75% as of Dec. 2025, which is 71% above its 10-year median of 41.44. GuruFocus rates RCT with a GF Score™ of 4/100. The stock has 6 warning signs investors should review. Among 2,685 Software companies, RedCloud Holdings ranks better than 66.29% 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
RedCloud Holdings had a gross margin of 70.75% for the quarter that ended in Dec. 2025 => 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.
RedCloud Holdings Gross Margin % Related Terms
RedCloud Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for RedCloud Holdings'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.
RCT vs KNRX, UPLD, MYSE: Gross Margin % Comparison
For the Software - Application subindustry, RedCloud Holdings'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.
RedCloud Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, RedCloud Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where RedCloud Holdings'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.
RedCloud Holdings (RCT) has a Gross Margin % of 70.75% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on RedCloud Holdings and its competitors. This is 71% above median its historical median of 41.44. According to the industry distribution chart, RedCloud Holdings ranks #905 out of 2685 companies in the Software industry, placing it in the top 33.7%.
Is RedCloud Holdings' Gross Margin % too high?
RedCloud Holdings' current Gross Margin % of 70.75% is 71% above median its 10-year median of 41.44. The Software industry median Gross Margin % is 40.46. RedCloud Holdings' value of 70.75% is 74.9% above this industry median. Based on the distribution chart, RedCloud Holdings ranks #905 out of 2685 companies in the Software industry, which is above the industry midpoint. Overall, RedCloud Holdings has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does RedCloud Holdings' Gross Margin % compare to KNRX and UPLD?
According to the Software industry distribution chart, RedCloud Holdings ranks #905 out of 2685 companies for Gross Margin %. This puts RedCloud Holdings in the upper half of its industry. The industry median Gross Margin % is 40.46. RedCloud Holdings' value of 70.75% is 74.9% above this benchmark. While the company's 10-year median is 41.44 vs. the industry median of 40.46, RedCloud Holdings 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 40.46, 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. RedCloud Holdings's current Gross Margin % of 70.75% is 74.9% 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 RedCloud Holdings 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. RedCloud Holdings's current Gross Margin % is 70.75%, which is 71% above median its own 10-year median of 41.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RedCloud Holdings stock overvalued right now?
RedCloud Holdings (RCT) has a current Gross Margin % of 70.75%. The current Gross Margin % is 70.75%, which is 71% above median its 10-year median of 41.44 and 74.9% above the Software industry median of 40.46. RedCloud Holdings' overall GF Score™ is 4/100 with 6 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 RedCloud Holdings (RCT), the current Gross Margin % is 70.75% 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.
RedCloud Holdings PLC developed and operates the RedCloud Platform, which facilitates the trading of everyday consumer supplies of fast-moving consumer goods (FMCG) products across business supply chains in Nigeria, South Africa, Argentina, Brazil, and through joint ventures in Turkiye and Saudi Arabia. The Platform solves the old problem of how to unlock and enable access to key purchase and sales data between brands, distributors, and retailers in growth consumer markets. Its Platform has AI and machine learning capabilities that provide brands, distributors, and retailers with trading and product insights and data to help make commercial decisions regarding their business operations. Geographically, Key revenue is generated from Nigeria.
4GF Score
Get the complete analysis for RCT
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
RCT has been successfully added to your 
