Gross MarginMediaGrowth
Gross Margin for Media at Growth (Freemium)
2026 data · Sample size: 485 · Source: First Round State of Startups 2026
25th %ile
57.7%
Median
63.4%
75th %ile
68.1%
90th %ile
72%
▬Trending stable year-over-year
About This Metric
Revenue minus cost of goods sold, expressed as a percentage. For SaaS, this is typically 70-85%.
(Revenue - COGS) / Revenue × 100
Higher is better · Unit: percentage
How to Improve
Migrate to cloud-native infrastructure to reduce COGS. Automate support with AI to reduce human cost per ticket. Negotiate volume discounts on third-party APIs.
Ehsan's Analysis
Media companies at Growth stage should track this metric weekly with a 4-week rolling average. The spread between p25 and p75 is where competitive advantage lives. Focus on moving from median to top-quartile before chasing top-decile performance. The compound effect of consistent 5% monthly improvement puts you in the top 10% within 18 months.
J.
Ehsan Jahandarpour
AI Growth Strategist & Fractional CMO · Forbes Top 20 Growth Hacker · TEDx Speaker · 716 Academic Citations
Frequently Asked Questions
What is a good Gross Margin for Media at Growth?
The median Gross Margin is 63.4%. Top-quartile companies achieve 68.1%. Aim for top-quartile to be competitive.
How does Gross Margin change by company stage?
Gross Margin improves as companies mature. Later-stage companies benefit from scale and optimization.
How to improve Gross Margin in Media?
Focus on the primary drivers specific to Media. Track weekly with a 4-week rolling average and iterate on the biggest lever.