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VroomVRM -0.36%46 Gross Margin % is 29.52% as of Jun. 2026, which is 365% above its 10-year median of 6.35. GuruFocus rates VRM with a GF Score™ of 46/100 and a GF Value™ of $16.40 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 391 Credit Services companies, Vroom ranks worse than 95.4% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Vroom's Gross Profit for the
three
months ended in Jun. 2026 was $12.87 Mil. Vroom's Revenue for the
three
months ended in Jun. 2026 was $43.61 Mil. Therefore, Vroom's Gross Margin % for the quarter that ended in Jun. 2026 was 29.52%.
The historical rank and industry rank for Vroom's Gross Margin % or its related term are showing as below:
VRM'
s Gross Margin % Range Over the Past 10 Years
Min: -30.97 Med: 6.35 Max: 12.56
Current: -30.97
During the past 8 years, the highestGross Margin % of Vroom was 12.56%. The lowest was -30.97%. And the median was 6.35%.
VRM's Gross Margin % is ranked worse than 95.4% of 391
companies
in the Credit Services industry
Industry Median: 51.69
vs VRM: -30.97
Vroom had a gross margin of 29.52% for the quarter that ended in Jun. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Vroom was 0.00% per year.
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
Vroom had a gross margin of 29.52% for the quarter that ended in Jun. 2026 => Competition eroding margins
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.
Vroom Gross Margin % Related Terms
Vroom Gross Margin % Historical Data
* Premium members only.
The historical data trend for Vroom'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 Credit Services subindustry, Vroom'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.
Vroom Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Vroom's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Vroom'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.
Vroom (VRM) has a Gross Margin % of 29.52% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Vroom and its competitors. This is 365% above median its historical median of 6.35. According to the industry distribution chart, Vroom ranks #373 out of 391 companies in the Credit Services industry, placing it in the top 95.4%.
Is Vroom's Gross Margin % too high?
Vroom's current Gross Margin % of 29.52% is 365% above median its 10-year median of 6.35. The Credit Services industry median Gross Margin % is 51.69. Vroom's value of 29.52% is 42.9% below this industry median. Based on the distribution chart, Vroom ranks #373 out of 391 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Vroom has a GF Score™ of 46/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Vroom's Gross Margin % compare to AIJTY and JF?
According to the Credit Services industry distribution chart, Vroom ranks #373 out of 391 companies for Gross Margin %. This places Vroom in the lower half of its industry. The industry median Gross Margin % is 51.69. Vroom's value of 29.52% is 42.9% below this benchmark. While the company's 10-year median is 6.35 vs. the industry median of 51.69, Vroom 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.69, based on 391 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. Vroom's current Gross Margin % of 29.52% is 42.9% 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 Vroom and its competitors. For the Credit Services industry, the median Gross Margin % is 51.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vroom's current Gross Margin % is 29.52%, which is 365% above median its own 10-year median of 6.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vroom stock overvalued right now?
Based on GuruFocus' analysis, Vroom (VRM) is currently considered Possible Value Trap. The stock's GF Value™ is $16.40, compared to a current price of $9.20 — trading 43.9% below its estimated fair value. The current Gross Margin % is 29.52%, which is 365% above median its 10-year median of 6.35 and 42.9% below the Credit Services industry median of 51.69. Vroom's overall GF Score™ is 46/100 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 Vroom (VRM), the current Gross Margin % is 29.52% as of Jun. 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 Vroom (VRM) Overvalued in 2026?
Based on GuruFocus' analysis, Vroom stock appears to be undervalued.
The current stock price of $9.20 is trading 43.9% below its estimated GF Value™ of $16.40.
GuruFocus considers Vroom to be Possible Value Trap.
Key valuation signals for VRM:
Gross Margin %: 29.52% (365% above median its 10-year median of 6.35)
GF Value™: $16.40 vs. price of $9.20 (43.9% below fair value)
Industry Position: 42.9% below the Credit Services median (#373 of 391)
No single metric tells the full story. See the VRM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vroom Inc is an end-to-end e-commerce platform for the used vehicles industry. The company offers vehicle financing to consumers through third-party dealers and an artificial intelligence ("AI")-powered analytics and digital services platform supporting the automotive industry.
46GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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