Fig. 01 · Glossary
Gross Margin
Also known as Gross Profit Margin, GM
Definition
Gross margin measures revenue after direct cost of goods sold or delivery costs. For software and tech-enabled services firms, it depends on hosting, support, implementation labor, third-party resale, services utilization, customer mix, and pricing discipline.
Gross margin is where business model truth shows up. A company can grow quickly while selling work that consumes delivery capacity faster than revenue expands.
For services-heavy technology firms, the gross-margin question is whether the company is selling a scalable operating model or custom labor under a software multiple story.
Human Renaissance glossary · operator-grade definitions · Research methodology
