Yalla GroupYALA +8.48%76 Gross Margin % is 66.49% as of Mar. 2026, which is 3% above its 10-year median of 64.85. GuruFocus rates YALA with a GF Score™ of 76/100 and a GF Value™ of $5.72 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,681 Software companies, Yalla Group ranks better than 77.47% on this metric.
The historical rank and industry rank for Yalla Group's Gross Margin % or its related term are showing as below:
YALA'
s Gross Margin % Range Over the Past 10 Years
Min: 54.59 Med: 64.85 Max: 67.61
Current: 67.6
During the past 8 years, the highestGross Margin % of Yalla Group was 67.61%. The lowest was 54.59%. And the median was 64.85%.
YALA's Gross Margin % is ranked better than 77.47% of 2681
companies
in the Software industry
Industry Median: 40.45
vs YALA: 67.60
Yalla Group had a gross margin of 66.49% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Yalla Group was 3.00% per year.
Yalla Group (NYSE:YALA) 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
Yalla Group had a gross margin of 66.49% 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.
Yalla Group Gross Margin % Related Terms
Yalla Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Yalla Group'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.
YALA vs RDVT, IBTA, GTM: Gross Margin % Comparison
For the Software - Application subindustry, Yalla Group'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.
Yalla Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, Yalla Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Yalla Group'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.
Yalla Group (YALA) has a Gross Margin % of 66.49% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Yalla Group and its competitors. This is near median its historical median of 64.85. Over the past decade, Yalla Group's Gross Margin % has ranged from 54.59 to 67.61. According to the industry distribution chart, Yalla Group ranks #604 out of 2681 companies in the Software industry, placing it in the top 22.5%.
Is Yalla Group's Gross Margin % too high?
Yalla Group's current Gross Margin % of 66.49% is near median its 10-year median of 64.85. Over the past 10 years, this metric has ranged from a low of 54.59 to a high of 67.61. The Software industry median Gross Margin % is 40.45. Yalla Group's value of 66.49% is 64.4% above this industry median. Based on the distribution chart, Yalla Group ranks #604 out of 2681 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Yalla Group has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Yalla Group's Gross Margin % compare to RDVT and IBTA?
According to the Software industry distribution chart, Yalla Group ranks #604 out of 2681 companies for Gross Margin %. This places Yalla Group in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Yalla Group's value of 66.49% is 64.4% above this benchmark. Historically, Yalla Group's own Gross Margin % has ranged from 54.59 to 67.61 over the past decade. While the company's 10-year median is 64.85 vs. the industry median of 40.45, Yalla Group 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 2,681 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. Yalla Group's current Gross Margin % of 66.49% is 64.4% 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 Yalla Group 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. Yalla Group's current Gross Margin % is 66.49%, which is near median its own 10-year median of 64.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yalla Group stock overvalued right now?
Based on GuruFocus' analysis, Yalla Group (YALA) is currently considered Fairly Valued. The stock's GF Value™ is $5.72, compared to a current price of $5.50 — trading 3.8% below its estimated fair value. The current Gross Margin % is 66.49%, which is near median its 10-year median of 64.85 and 64.4% above the Software industry median of 40.45. Yalla Group's overall GF Score™ is 76/100 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 Yalla Group (YALA), the current Gross Margin % is 66.49% 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 Yalla Group (YALA) Overvalued in 2026?
Based on GuruFocus' analysis, Yalla Group stock appears to be undervalued.
The current stock price of $5.50 is trading 3.8% below its estimated GF Value™ of $5.72.
GuruFocus considers Yalla Group to be Fairly Valued.
Key valuation signals for YALA:
Gross Margin %: 66.49% (near median its 10-year median of 64.85)
GF Value™: $5.72 vs. price of $5.50 (3.8% below fair value)
Industry Position: 64.4% above the Software median (#604 of 2681)
No single metric tells the full story. See the YALA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yalla Group Ltd is a MENA-based online social networking and gaming company. It operates two flagship mobile applications, Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring online versions of board games popular in MENA, with in-game voice chat and localized majlis functions. The group has one operating segment, which is the social networking and entertainment platform.
76GF Score
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