Margin Glossary

StreetMining tracks the language top operators use when they talk about margin expansion. Use this glossary to align your transcript reviews with the signals our models prioritize.

Core Metrics

Baseline profitability ratios that anchor any margin expansion narrative.

Signal weight: 1.0

Operating margin: Share of revenue that remains after operating expenses – the north star for sustained margin expansion.
Gross margin: Revenue minus direct costs of production. Rising gross margin signals improved product economics before overheads.
EBITDA margin: Earnings before interest, taxes, depreciation, and amortization as a percentage of revenue – a clean read on cash profitability.
Incremental margin: The percentage of each additional revenue dollar that converts to profit, highlighting operating leverage.

Cost Structure

Signals that management is reshaping expenses to protect or expand profitability.

Signal weight: 0.8

Cost of goods sold (COGS): Direct input costs required to deliver a product or service. Tracking COGS percentage reveals production efficiency gains.
SG&A as a percentage of revenue: Sales, general, and administrative spend normalized to revenue – a quick test for back-office discipline.
Cost optimization: Company-wide initiatives to streamline workflows, renegotiate vendors, or consolidate platforms to lower recurring expenses.

Scalability

How efficiently incremental demand translates into higher profitability at scale.

Signal weight: 1.2

Operating leverage: When fixed costs stay relatively flat as revenue grows, expanding margins without new spending.
Economies of scale: Unit costs fall as volumes rise, often through automation, better purchasing power, or platform reuse.
Efficiency gains: Process improvements that boost output per employee, server, or dollar invested.

AI & Automation Signals

High-impact catalysts where intelligent automation delivers step-changes in margin structure.

Signal weight: 1.5

AI driven efficiency: Using machine learning to optimize operations, from forecasting demand to routing support tickets.
Automation savings: Quantified cost reductions from bots or scripted workflows replacing manual effort.
AI-enabled margin expansion: Management explicitly linking AI initiatives to future margin improvement guidance.
Inference cost decline: Lower compute expense per AI prediction, unlocking scale economics for AI-heavy products.

Pricing Power

Narratives that show the company can charge more without sacrificing demand.

Signal weight: 1.0

Pricing power: Ability to raise list prices or reduce discounting because customers perceive differentiated value.
Value-based pricing: Aligning price points with delivered business outcomes, supporting durable margin uplift.
Mix shift to higher margin products: Transitioning demand toward premium offerings that carry structurally better unit economics.