Frequency HoldingsFRQND +92.31% Operating Margin % is -152.40% as of Sep. 2025. The stock has 4 warning signs investors should review. Among 2,813 Software companies, Frequency Holdings ranks worse than 89.02% on this metric.
Frequency Holdings Inc had lost money in 83% of the time over the past 12quarters.
Frequency Holdings (OTCPK:FRQND) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Frequency Holdings Operating Margin % Related Terms
Frequency Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for Frequency Holdings's Operating 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.
FRQND vs GTCH, IBM, ACN: Operating Margin % Comparison
For the Information Technology Services subindustry, Frequency Holdings's Operating Margin %, along with its competitors' market caps and Operating 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.
Frequency Holdings Operating Margin % vs Software Industry
For the Software industry and Technology sector, Frequency Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Frequency Holdings's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Frequency Holdings's Operating Margin % for the fiscal year that ended in Dec. 2024 is calculated as
* 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.
Frequency Holdings (FRQND) has a Operating Margin % of -152.40% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Frequency Holdings and its competitors. According to the industry distribution chart, Frequency Holdings ranks #2504 out of 2813 companies in the Software industry, placing it in the top 89%.
Is Frequency Holdings' Operating Margin % too high?
Frequency Holdings' current Operating Margin % is -152.40%. Based on the distribution chart, Frequency Holdings ranks #2504 out of 2813 companies in the Software industry, which is in the bottom quartile relative to peers.
How does Frequency Holdings' Operating Margin % compare to GTCH and IBM?
According to the Software industry distribution chart, Frequency Holdings ranks #2504 out of 2813 companies for Operating Margin %. This places Frequency Holdings in the lower half of its industry. The industry median Operating Margin % is 3.88. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.88, based on 2,813 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Frequency Holdings and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frequency Holdings's current Operating Margin % is -152.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frequency Holdings stock overvalued right now?
Frequency Holdings (FRQND) has a current Operating Margin % of -152.40%. The current Operating Margin % is -152.40%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Frequency Holdings (FRQND), the current Operating Margin % is -152.40% as of Sep. 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.
Frequency Holdings Inc is a technology-focused holding company. The Company's model is designed to compound value through independently managed subsidiaries and strategic investments, drawing from the long-term discipline of Berkshire Hathaway and the multi-brand architecture of Alphabet. It operates through its wholly owned subsidiary which serves as the Company's execution engine. ReachOut is a cybersecurity-first digital infrastructure platform delivering compliance readiness, proactive risk reduction, and operational support for small and mid-sized businesses. The business is built on recurring revenue, high retention, and measurable outcomes, providing a stable foundation of cashflow while continuing to scale.
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