WealthfrontWLTH +8.99%21 Gross Margin % is 88.99% as of Apr. 2026, which is 1% below its 10-year median of 89.59. GuruFocus rates WLTH with a GF Score™ of 21/100. The stock has 3 warning signs investors should review. Among 2,685 Software companies, Wealthfront ranks better than 95.05% on this metric.
The historical rank and industry rank for Wealthfront's Gross Margin % or its related term are showing as below:
WLTH'
s Gross Margin % Range Over the Past 10 Years
Min: 89.41 Med: 89.59 Max: 89.97
Current: 89.41
During the past 3 years, the highestGross Margin % of Wealthfront was 89.97%. The lowest was 89.41%. And the median was 89.59%.
WLTH's Gross Margin % is ranked better than 95.05% of 2685
companies
in the Software industry
Industry Median: 40.45
vs WLTH: 89.41
Wealthfront had a gross margin of 88.99% for the quarter that ended in Apr. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Wealthfront was 0.00% per year.
Wealthfront (NAS:WLTH) 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
Wealthfront had a gross margin of 88.99% for the quarter that ended in Apr. 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.
Wealthfront Gross Margin % Related Terms
Wealthfront Gross Margin % Historical Data
* Premium members only.
The historical data trend for Wealthfront'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.
WLTH vs INTA, ASAN, NCNO: Gross Margin % Comparison
For the Software - Application subindustry, Wealthfront'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.
Wealthfront Gross Margin % vs Software Industry
For the Software industry and Technology sector, Wealthfront's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Wealthfront'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.
Wealthfront (WLTH) has a Gross Margin % of 88.99% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Wealthfront and its competitors. This is near median its historical median of 89.59. Over the past decade, Wealthfront's Gross Margin % has ranged from 89.41 to 89.97. According to the industry distribution chart, Wealthfront ranks #133 out of 2685 companies in the Software industry, placing it in the top 5%.
Is Wealthfront's Gross Margin % too high?
Wealthfront's current Gross Margin % of 88.99% is near median its 10-year median of 89.59. Over the past 10 years, this metric has ranged from a low of 89.41 to a high of 89.97. The Software industry median Gross Margin % is 40.45. Wealthfront's value of 88.99% is 120% above this industry median. Based on the distribution chart, Wealthfront ranks #133 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Wealthfront has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Wealthfront's Gross Margin % compare to INTA and ASAN?
According to the Software industry distribution chart, Wealthfront ranks #133 out of 2685 companies for Gross Margin %. This places Wealthfront in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Wealthfront's value of 88.99% is 120% above this benchmark. Historically, Wealthfront's own Gross Margin % has ranged from 89.41 to 89.97 over the past decade. While the company's 10-year median is 89.59 vs. the industry median of 40.45, Wealthfront 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. Wealthfront's current Gross Margin % of 88.99% is 120% 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 Wealthfront 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. Wealthfront's current Gross Margin % is 88.99%, which is near median its own 10-year median of 89.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wealthfront stock overvalued right now?
Wealthfront (WLTH) has a current Gross Margin % of 88.99%. The current Gross Margin % is 88.99%, which is near median its 10-year median of 89.59 and 120% above the Software industry median of 40.45. Wealthfront's overall GF Score™ is 21/100 with 3 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 Wealthfront (WLTH), the current Gross Margin % is 88.99% as of Apr. 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.
Wealthfront Corp is a product-driven technology company that built a financial solutions platform for digital natives. The platform is designed to address the needs of the wealth builders within these generations. Its business model is designed to optimize for clients' success. The focus on delivering fully automated services results in being one of the lowest cost producers in each category in which participate. The group generates revenue from cash management and investment advisory products. Cash management revenue is earned from fees received for the delivery of cash management services, including the cash sweep program.
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