Margin Expansion
Margin expansion is an increase in a company's profit margin over time, driven by pricing power, operating leverage or cost discipline. It is one of the most valued dynamics in an earnings call because it compounds — the same revenue converts into more profit.
Seen in a real earnings call
“…same period last year. Our adjusted EBITDA margin increased 16.4% compared to 13.2% in the same period last year, driven by gross margin expansion and continued operational discipline. Turning to our balance sheet. Our strong financial position provides us the flexibility to continue investing in our long-term…”Reformation Inc. (REF) — earnings call, September 10, 2026