REACT Group (LSE:REAT) Gross Profit: £5.95 Mil (TTM As of Mar. 2026)

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LSE:REAT REACT Group PLC LSE:REAT
38 GF Score
Price £0.41
GF Value £0.86
Valuation Significantly Undervalued
! 6 Warning Signs
View Full Analysis

What is REACT Group Gross Profit?

REACT Group LSE:REAT 38 Gross Profit is £5.95 Mil as of Mar. 2026. GuruFocus rates LSE:REAT with a GF Score™ of 38/100 and a GF Value™ of £0.86 (Significantly Undervalued). The stock has 6 warning signs investors should review.

REACT Group's gross profit for the six months ended in Mar. 2026 was £3.02 Mil. REACT Group's gross profit for the trailing twelve months (TTM) ended in Mar. 2026 was £5.95 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. REACT Group's gross profit for the six months ended in Mar. 2026 was £3.02 Mil. REACT Group's Revenue for the six months ended in Mar. 2026 was £13.19 Mil. Therefore, REACT Group's Gross Margin % for the quarter that ended in Mar. 2026 was 22.88%.

REACT Group had a gross margin of 22.88% for the quarter that ended in Mar. 2026 => Competition eroding margins

During the past 13 years, the highest Gross Margin % of REACT Group was 41.65%. The lowest was 21.03%. And the median was 29.64%.

Warning Sign:

REACT Group PLC gross margin has been in long-term decline. The average rate of decline per year is -1.1%.


REACT Group  (LSE:REAT) Gross Profit 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

REACT Group had a gross margin of 22.88% for the quarter that ended in Mar. 2026 => Competition eroding margins


REACT Group Gross Profit Related Terms


REACT Group Gross Profit Historical Data

* Premium members only.

The historical data trend for REACT Group's Gross Profit 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.

REACT Group Gross Profit Chart

REACT Group Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Gross Profit
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.11 2.34 3.43 3.94 5.54

REACT Group Semi-Annual Data
Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Gross Profit Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.97 1.97 2.61 2.93 3.02

LSE:REAT vs CTAS, CPRT, GPN: Gross Profit Comparison

For the Specialty Business Services subindustry, REACT Group's Gross Profit, along with its competitors' market caps and Gross Profit 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.


REACT Group Gross Profit vs Business Services Industry

For the Business Services industry and Industrials sector, REACT Group's Gross Profit distribution charts can be found below:

* The bar in red indicates where REACT Group's Gross Profit falls into.


LSE:REAT
38GF Score
REACT Group PLC LSE:REAT
Gross Profit is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

REACT Group Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

REACT Group's Gross Profit for the fiscal year that ended in Sep. 2025 is calculated as

Gross Profit (A: Sep. 2025 )=Revenue - Cost of Goods Sold
=24.932 - 19.391
=5.54

REACT Group's Gross Profit for the quarter that ended in Mar. 2026 is calculated as

Gross Profit (Q: Mar. 2026 )=Revenue - Cost of Goods Sold
=13.188 - 10.17
=3.02

Gross Profit for the trailing twelve months (TTM) ended in Mar. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was £5.95 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

REACT Group's Gross Margin % for the quarter that ended in Mar. 2026 is calculated as

Gross Margin % (Q: Mar. 2026 )=Gross Profit (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=(Revenue - Cost of Goods Sold) / Revenue
=3.02 / 13.188
=22.88 %

* 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.

Frequently Asked Questions Learn more about Gross Profit →
What does a Gross Profit of £5.95 Mil mean?
REACT Group (LSE:REAT) has a Gross Profit of £5.95 Mil as of Mar. 2026. Gross Profit equals net sales less total cost of goods sold. View historical data on REACT Group and its competitors.
Is REACT Group's Gross Profit too high?
REACT Group's current Gross Profit is £5.95 Mil. Overall, REACT Group has a GF Score™ of 38/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does REACT Group's Gross Profit compare to CTAS and CPRT?
REACT Group's Gross Profit of £5.95 Mil can be compared against companies in the Business Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Profit for a Business Services company?
A good Gross Profit depends on the Business Services industry context. However, Gross Profit 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 Profit mean?
A high Gross Profit can signal that a stock is expensive relative to its fundamentals. Gross Profit equals net sales less total cost of goods sold. View historical data on REACT Group and its competitors. REACT Group's current Gross Profit is £5.95 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REACT Group stock overvalued right now?
Based on GuruFocus' analysis, REACT Group (LSE:REAT) is currently considered Significantly Undervalued. The stock's GF Value™ is £0.86, compared to a current price of £0.41 — trading 52.3% below its estimated fair value. The current Gross Profit is £5.95 Mil. REACT Group's overall GF Score™ is 38/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Profit calculated?
Gross Profit is calculated from a company's financial statements. For REACT Group (LSE:REAT), the current Gross Profit is £5.95 Mil 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 REACT Group (LSE:REAT) Overvalued in 2026?

Based on GuruFocus' analysis, REACT Group stock appears to be undervalued. The current stock price of £0.41 is trading 52.3% below its estimated GF Value™ of £0.86. GuruFocus considers REACT Group to be Significantly Undervalued.

Key valuation signals for LSE:REAT:

  • Gross Profit: £5.95 Mil
  • GF Value™: £0.86 vs. price of £0.41 (52.3% below fair value)
  • GF Score™: 38/100 with 6 warning signs

No single metric tells the full story. See the LSE:REAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


REACT Group Business Description

Address Holly House, Shady Lane, Birmingham, GBR, B44 9ER
REACT Group PLC is engaged in providing cleaning, decontamination, hygiene services, drainage and plumbing including both contracted commercial cleaning and specialist emergency decontamination work. Its objective is to maintain and/or rapidly return its customer's property to safe, clean, operational use and do this through regular specialist cleaning and/or emergency response to potentially harmful incidents. The business operates through three divisions; commercial windows & cladding, hygiene & maintenance, and, emergency & decontamination. It has three operating segments; Contract Maintenance, Contract Reactive, and Ad Hoc work, out of which a majority of the revenue is generated from the contract maintenance segment.
38GF Score

Get the complete analysis for LSE:REAT

Gross Profit is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£0.41
Price
£0.86
GF Value