Definition
Gross Margin
Revenue left after the direct cost of making a product or service.
Gross margin is revenue minus the cost of goods sold, expressed as a percentage of revenue — what’s left to cover everything else before operating expenses. A high gross margin gives a company room to invest, weather downturns, and fund the things that build a moat. Comparing it to industry peers helps show whether a business has a genuine cost or pricing edge. It’s one of the inputs to the Market Lens Moat score.
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