What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of Arbor Realty Trust (ABR) revenue becomes net income?

For TTM through Q1 2026, Arbor Realty Trust turned $1.21B of revenue into $119M of net income — a net margin of 9.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Arbor Realty Trust (ABR) gross, operating, and net margins?

For TTM through Q1 2026, Arbor Realty Trust reported a gross margin of 92.6%, an operating margin of 72.8%, and a net margin of 9.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Arbor Realty Trust (ABR) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

Arbor Realty Trust (ABR) Income Statement Waterfall

Revenue

$1.21B

Gross Margin

+92.6%

Operating Margin

+72.8%

Net Margin

+9.8%

Income statement waterfall for Arbor Realty Trust (ABR) — TTM through Q1 2026

Net income: $119M

Margin breakdown for Arbor Realty Trust (ABR) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$1.21B	$1.21B
Cost of Revenue	-$89.6M	$1.12B
Gross Profit	$1.12B	$1.12B
Operating Expenses	-$239M	$879M
Operating Income	$879M	$879M
Other Income / Expense	-$736M	$143M
Pre-tax Income	$143M	$143M
Income Tax	-$17.3M	$125M
Other Items	-$6.48M	$119M
Net Income	$119M	$119M

Revenue$1.21B
Cost of Revenue-$89.6M
Gross Profit$1.12B
Operating Expenses-$239M
Operating Income$879M
Other Income / Expense-$736M
Pre-tax Income$143M
Income Tax-$17.3M
Other Items-$6.48M
Net Income$119M

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Arbor Realty Trust (ABR) Key Financials

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Income Statement

Balance Sheet

Profitability

Operating Margin72.8%

Cash Flow

Capital Return

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Operations

Employees653.0

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