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XChange TecXHG -3.04%13 Operating Margin % is -3.73% as of Mar. 2026. GuruFocus rates XHG with a GF Score™ of 13/100. The stock has 6 warning signs investors should review. Among 66 Insurance companies, XChange Tec ranks better than 72.73% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. XChange Tec's Operating Income for the
six
months ended in Mar. 2026 was $-1.07 Mil. XChange Tec's Revenue for the
six
months ended in Mar. 2026 was $28.70 Mil. Therefore, XChange Tec's Operating Margin % for the quarter that ended in Mar. 2026 was -3.73%.
The historical rank and industry rank for XChange Tec's Operating Margin % or its related term are showing as below:
XHG'
s Operating Margin % Range Over the Past 10 Years
Min: -42.23 Med: -23.62 Max: 21.4
Current: 21.4
XHG's Operating Margin % is ranked better than 72.73% of 66
companies
in the Insurance industry
Industry Median: 10.91
vs XHG: 21.40
XChange Tec's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
XChange Tec's Operating Income for the
six
months ended in Mar. 2026 was $-1.07 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $0.88 Mil.
Warning Sign:
XChange Tec Inc has never been profitable in the past 3 years. It lost money every year.
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.
XChange Tec Operating Margin % Related Terms
XChange Tec Operating Margin % Historical Data
* Premium members only.
The historical data trend for XChange Tec'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.
XHG vs EHTH, QDMI, HUIZ: Operating Margin % Comparison
For the Insurance Brokers subindustry, XChange Tec'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.
XChange Tec Operating Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, XChange Tec's Operating Margin % distribution charts can be found below:
* The bar in red indicates where XChange Tec'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.
XChange Tec's Operating Margin % for the fiscal year that ended in Sep. 2025 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.
XChange Tec (XHG) has a Operating Margin % of -3.73% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on XChange Tec and its competitors. According to the industry distribution chart, XChange Tec ranks #18 out of 66 companies in the Insurance industry, placing it in the top 27.3%.
Is XChange Tec's Operating Margin % too high?
XChange Tec's current Operating Margin % is -3.73%. Based on the distribution chart, XChange Tec ranks #18 out of 66 companies in the Insurance industry, which is above the industry midpoint. Overall, XChange Tec has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does XChange Tec's Operating Margin % compare to EHTH and QDMI?
According to the Insurance industry distribution chart, XChange Tec ranks #18 out of 66 companies for Operating Margin %. This puts XChange Tec in the upper half of its industry. The industry median Operating Margin % is 10.91. 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 an Insurance company?
The median Operating Margin % among Insurance companies is 10.91, based on 66 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 XChange Tec and its competitors. For the Insurance industry, the median Operating Margin % is 10.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. XChange Tec's current Operating Margin % is -3.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is XChange Tec stock overvalued right now?
XChange Tec (XHG) has a current Operating Margin % of -3.73%. The current Operating Margin % is -3.73%. XChange Tec's overall GF Score™ is 13/100 with 6 warning signs to review. 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 XChange Tec (XHG), the current Operating Margin % is -3.73% 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.
XChange Tec Inc, through its subsidiaries, operates in the insurance agency and insurance technology business. The company specialized in distributing automobile insurance policies at the earlier stage of business and subsequently expanded its insurance product portfolio to include other types of insurance, including life, health, group accident, and other property-related insurances. A maximum of the insurance purchased through platform and agency services is for automobile insurance.
13GF Score
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