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Wellchange Holdings CoWCT +4.87%20 Gross Margin % is -140.40% as of Dec. 2025. GuruFocus rates WCT with a GF Score™ of 20/100. The stock has 5 warning signs investors should review. Among 2,691 Software companies, Wellchange Holdings Co ranks better than 52.29% on this metric.
WCT's Gross Margin % is ranked better than 52.29% of 2691
companies
in the Software industry
Industry Median: 40.57
vs WCT: 42.62
Wellchange Holdings Co had a gross margin of -140.40% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Wellchange Holdings Co was 0.00% per year.
Wellchange Holdings Co (NAS:WCT) 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
Wellchange Holdings Co had a gross margin of -140.40% for the quarter that ended in Dec. 2025 => 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.
Wellchange Holdings Co Gross Margin % Related Terms
Wellchange Holdings Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Wellchange Holdings Co'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.
WCT vs QGSI, FTFT, EHVVF: Gross Margin % Comparison
For the Software - Application subindustry, Wellchange Holdings Co'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.
Wellchange Holdings Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Wellchange Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Wellchange Holdings Co'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.
Wellchange Holdings Co (WCT) has a Gross Margin % of -140.40% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Wellchange Holdings Co and its competitors. Over the past decade, Wellchange Holdings Co's Gross Margin % has ranged from 42.62 to 78.87. According to the industry distribution chart, Wellchange Holdings Co ranks #1284 out of 2691 companies in the Software industry, placing it in the top 47.7%.
Is Wellchange Holdings Co's Gross Margin % too high?
Wellchange Holdings Co's current Gross Margin % is -140.40%. Over the past 10 years, this metric has ranged from a low of 42.62 to a high of 78.87. Based on the distribution chart, Wellchange Holdings Co ranks #1284 out of 2691 companies in the Software industry, which is above the industry midpoint. Overall, Wellchange Holdings Co has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Wellchange Holdings Co's Gross Margin % compare to QGSI and FTFT?
According to the Software industry distribution chart, Wellchange Holdings Co ranks #1284 out of 2691 companies for Gross Margin %. This puts Wellchange Holdings Co in the upper half of its industry. The industry median Gross Margin % is 40.57. Historically, Wellchange Holdings Co's own Gross Margin % has ranged from 42.62 to 78.87 over the past decade. 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 40.57, based on 2,691 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. 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 Wellchange Holdings Co and its competitors. For the Software industry, the median Gross Margin % is 40.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wellchange Holdings Co's current Gross Margin % is -140.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wellchange Holdings Co stock overvalued right now?
Wellchange Holdings Co (WCT) has a current Gross Margin % of -140.40%. The current Gross Margin % is -140.40%. Wellchange Holdings Co's overall GF Score™ is 20/100 with 5 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 Wellchange Holdings Co (WCT), the current Gross Margin % is -140.40% 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.
Wellchange Holdings Co Ltd is an enterprise software solution services provider. It provides software solutions, cloud-based software-as-a-service (SaaS) platforms, and white-label software design and development services. Geographically, the firm generates all of its revenue from Hong Kong. The firm derives the majority of its revenue from Customized software solutions, followed by White label software and Subscription services.
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