Glossary › Gross Profit
Gross Profit
Revenue minus the direct costs of delivering it. Shows whether the core offering is profitable before overheads.
Gross profit is revenue minus cost of goods sold — the direct costs of delivering what you sell (materials, subcontractors, direct labour), before overheads like rent and admin.
It answers whether the product or service itself makes money. Weak gross profit can't be fixed by trimming office costs; it needs pricing or delivery-cost changes.
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