Trident Digital Tech HoldingsTDTH -3.25% Gross Margin % is 52.42% as of Dec. 2025, which is 153% above its 10-year median of 20.74. The stock has 9 warning signs investors should review. Among 2,685 Software companies, Trident Digital Tech Holdings ranks better than 62.79% on this metric.
Trident Digital Tech Holdings (NAS:TDTH) 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
Trident Digital Tech Holdings had a gross margin of 52.42% 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.
Trident Digital Tech Holdings Gross Margin % Related Terms
Trident Digital Tech Holdings Gross Margin % Historical Data
* 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.
Trident Digital Tech Holdings Gross Margin % Chart
TDTH vs LZMH, CRCW, ARBB: Gross Margin % Comparison
For the Information Technology Services subindustry, Trident Digital Tech 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.
Trident Digital Tech Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Trident Digital Tech Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Trident Digital Tech 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.
Trident Digital Tech Holdings (TDTH) has a Gross Margin % of 52.42% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Trident Digital Tech Holdings and its competitors. This is 153% above median its historical median of 20.74. Over the past decade, Trident Digital Tech Holdings' Gross Margin % has ranged from 0.22 to 51.55. According to the industry distribution chart, Trident Digital Tech Holdings ranks #999 out of 2685 companies in the Software industry, placing it in the top 37.2%.
Is Trident Digital Tech Holdings' Gross Margin % too high?
Trident Digital Tech Holdings' current Gross Margin % of 52.42% is 153% above median its 10-year median of 20.74. Over the past 10 years, this metric has ranged from a low of 0.22 to a high of 51.55. The Software industry median Gross Margin % is 40.45. Trident Digital Tech Holdings' value of 52.42% is 29.6% above this industry median. Based on the distribution chart, Trident Digital Tech Holdings ranks #999 out of 2685 companies in the Software industry, which is above the industry midpoint.
How does Trident Digital Tech Holdings' Gross Margin % compare to LZMH and CRCW?
According to the Software industry distribution chart, Trident Digital Tech Holdings ranks #999 out of 2685 companies for Gross Margin %. This puts Trident Digital Tech Holdings in the upper half of its industry. The industry median Gross Margin % is 40.45. Trident Digital Tech Holdings' value of 52.42% is 29.6% above this benchmark. Historically, Trident Digital Tech Holdings' own Gross Margin % has ranged from 0.22 to 51.55 over the past decade. While the company's 10-year median is 20.74 vs. the industry median of 40.45, Trident Digital Tech 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 40.45, 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. Trident Digital Tech Holdings's current Gross Margin % of 52.42% is 29.6% 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 Trident Digital Tech Holdings 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. Trident Digital Tech Holdings's current Gross Margin % is 52.42%, which is 153% above median its own 10-year median of 20.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trident Digital Tech Holdings stock overvalued right now?
Trident Digital Tech Holdings (TDTH) has a current Gross Margin % of 52.42%. The current Gross Margin % is 52.42%, which is 153% above median its 10-year median of 20.74 and 29.6% above the Software industry median of 40.45. 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 Trident Digital Tech Holdings (TDTH), the current Gross Margin % is 52.42% 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.
Trident Digital Tech Holdings Business Description
Trident Digital Tech Holdings Ltd is principally engaged in the provision of business consulting service and IT customization solutions in the Republic of Singapore. Its revenue is derived from business consulting service, IT customization and selling event tickets. The company only operates and generates revenue from Singapore.
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