ReadCloudASX:RCL -2.90% Pretax Margin % is 18.27% as of Mar. 2026. The stock has 3 warning signs investors should review. Among 2,825 Software companies, ReadCloud ranks worse than 62.09% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. ReadCloud's Pre-Tax Income for the
six
months ended in Mar. 2026 was A$1.56 Mil. ReadCloud's Revenue for the
six
months ended in Mar. 2026 was A$8.52 Mil. Therefore, ReadCloud's pretax margin for the quarter that ended in Mar. 2026 was 18.27%.
The historical rank and industry rank for ReadCloud's Pretax Margin % or its related term are showing as below:
ASX:RCL'
s Pretax Margin % Range Over the Past 10 Years
Min: -65.62 Med: -17.75 Max: -1.59
Current: -1.59
ASX:RCL's Pretax Margin % is ranked worse than 62.09% of 2825
companies
in the Software industry
Industry Median: 3.53
vs ASX:RCL: -1.59
ReadCloud (ASX:RCL) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
ReadCloud Pretax Margin % Related Terms
ReadCloud Pretax Margin % Historical Data
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The historical data trend for ReadCloud's Pretax 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.
ASX:RCL vs CRM, SHOP, UBER: Pretax Margin % Comparison
For the Software - Application subindustry, ReadCloud's Pretax Margin %, along with its competitors' market caps and Pretax 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.
ReadCloud Pretax Margin % vs Software Industry
For the Software industry and Technology sector, ReadCloud's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where ReadCloud's Pretax 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.
ReadCloud (ASX:RCL) has a Pretax Margin % of 18.27% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on ReadCloud and its competitors. According to the industry distribution chart, ReadCloud ranks #1754 out of 2825 companies in the Software industry, placing it in the top 62.1%.
Is ReadCloud's Pretax Margin % too high?
ReadCloud's current Pretax Margin % is 18.27%. The Software industry median Pretax Margin % is 3.53. ReadCloud's value of 18.27% is 417.6% above this industry median. Based on the distribution chart, ReadCloud ranks #1754 out of 2825 companies in the Software industry, which is below the industry midpoint.
How does ReadCloud's Pretax Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, ReadCloud ranks #1754 out of 2825 companies for Pretax Margin %. This places ReadCloud in the lower half of its industry. The industry median Pretax Margin % is 3.53. ReadCloud's value of 18.27% is 417.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.53, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ReadCloud's current Pretax Margin % of 18.27% is 417.6% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on ReadCloud and its competitors. For the Software industry, the median Pretax Margin % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ReadCloud's current Pretax Margin % is 18.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ReadCloud stock overvalued right now?
Based on GuruFocus' analysis, ReadCloud (ASX:RCL) is currently considered Significantly Undervalued. The stock's GF Value™ is A$0.10, compared to a current price of A$0.07 — trading 33% below its estimated fair value. The current Pretax Margin % is 18.27% and 417.6% above the Software industry median of 3.53. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For ReadCloud (ASX:RCL), the current Pretax Margin % is 18.27% 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.
ReadCloud Ltd is an education technology company that offers digital e-learning solutions to secondary schools. The firm operates in two segments: eBook solutions, which is the key revenue driver, and Vocational Education and Training (VET). It provides software solutions, including eBooks, to schools within Australia. In addition, it also provides digital VET course materials and services to schools through its subsidiary Australian Institute of Education and Training Unit Trust, PKY Media Pty Ltd and Ripponlea Institute Pty Ltd, which offers over 40 VET courses and services to schools across Australia.
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