Solo BrandsSBDS +2.13%59 Gross Margin % is 52.33% as of Mar. 2026, which is 14% below its 10-year median of 61.07. GuruFocus rates SBDS with a GF Score™ of 59/100 and a GF Value™ of $26.03 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Solo Brands ranks better than 85.23% on this metric.
Solo Brands Inc gross margin has been in long-term decline. The average rate of decline per year is -2.3%.
The historical rank and industry rank for Solo Brands's Gross Margin % or its related term are showing as below:
SBDS'
s Gross Margin % Range Over the Past 10 Years
Min: 56.8 Med: 61.07 Max: 65.18
Current: 59.03
During the past 7 years, the highestGross Margin % of Solo Brands was 65.18%. The lowest was 56.80%. And the median was 61.07%.
SBDS's Gross Margin % is ranked better than 85.23% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs SBDS: 59.03
Solo Brands had a gross margin of 52.33% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Solo Brands was -2.30% per year.
Solo Brands (OTCPK:SBDS) 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
Solo Brands had a gross margin of 52.33% 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.
Solo Brands Gross Margin % Related Terms
Solo Brands Gross Margin % Historical Data
* Premium members only.
The historical data trend for Solo Brands'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.
For the Internet Retail subindustry, Solo Brands'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.
Solo Brands Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Solo Brands's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Solo Brands'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.
Solo Brands (SBDS) has a Gross Margin % of 52.33% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Solo Brands and its competitors. This is 14% below median its historical median of 61.07. Over the past decade, Solo Brands' Gross Margin % has ranged from 56.80 to 65.18. According to the industry distribution chart, Solo Brands ranks #165 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 14.8%.
Is Solo Brands' Gross Margin % too high?
Solo Brands' current Gross Margin % of 52.33% is 14% below median its 10-year median of 61.07. Over the past 10 years, this metric has ranged from a low of 56.80 to a high of 65.18. The Retail - Cyclical industry median Gross Margin % is 36.23. Solo Brands' value of 52.33% is 44.4% above this industry median. Based on the distribution chart, Solo Brands ranks #165 out of 1117 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Solo Brands has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Solo Brands' Gross Margin % compare to KPEA and YJ?
According to the Retail - Cyclical industry distribution chart, Solo Brands ranks #165 out of 1117 companies for Gross Margin %. This places Solo Brands in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.23. Solo Brands' value of 52.33% is 44.4% above this benchmark. Historically, Solo Brands' own Gross Margin % has ranged from 56.80 to 65.18 over the past decade. While the company's 10-year median is 61.07 vs. the industry median of 36.23, Solo Brands 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 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. Solo Brands's current Gross Margin % of 52.33% is 44.4% 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 Solo Brands and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Solo Brands's current Gross Margin % is 52.33%, which is 14% below median its own 10-year median of 61.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solo Brands stock overvalued right now?
Based on GuruFocus' analysis, Solo Brands (SBDS) is currently considered Possible Value Trap. The stock's GF Value™ is $26.03, compared to a current price of $3.63 — trading 86.1% below its estimated fair value. The current Gross Margin % is 52.33%, which is 14% below median its 10-year median of 61.07 and 44.4% above the Retail - Cyclical industry median of 36.23. Solo Brands' overall GF Score™ is 59/100 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 Solo Brands (SBDS), the current Gross Margin % is 52.33% 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 Solo Brands (SBDS) Overvalued in 2026?
Based on GuruFocus' analysis, Solo Brands stock appears to be undervalued.
The current stock price of $3.63 is trading 86.1% below its estimated GF Value™ of $26.03.
GuruFocus considers Solo Brands to be Possible Value Trap.
Key valuation signals for SBDS:
Gross Margin %: 52.33% (14% below median its 10-year median of 61.07)
GF Value™: $26.03 vs. price of $3.63 (86.1% below fair value)
Industry Position: 44.4% above the Retail - Cyclical median (#165 of 1117)
No single metric tells the full story. See the SBDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solo Brands Inc is a Direct-To-Consumer (DTC) platform. It operates four premium outdoor lifestyle brands Solo Stove, Oru, ISLE, and Chubbies apparel. Solo Stove offers portable, low-smoke fire pits, grills, and camping stoves for backyard and outdoor use in different sizes, fire pit bundles, gear kits, stoves, cookware, dinnerware, and a variety of clothing and accessories. Oru offers a flagship line of lightweight, foldable kayaks. ISLE produces high-quality stand-up paddle boards with colorful designs that are engineered to accommodate every skill level, style, and interest. Chubbies is a fun-loving, premium apparel brand that offers well-fitted comfortable clothing, and other brands with different services and products.
59GF Score
Get the complete analysis for SBDS
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
SBDS has been successfully added to your 
