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 Agree Realty (ADC) revenue becomes net income?

For TTM through Q1 2026, Agree Realty turned $750M of revenue into $220M of net income — a net margin of 29.3%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Agree Realty (ADC) gross, operating, and net margins?

For TTM through Q1 2026, Agree Realty reported a gross margin of 87.6%, an operating margin of 48%, and a net margin of 29.3%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Agree Realty (ADC) 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.

Agree Realty (ADC) Income Statement Waterfall

Revenue

$750M

Gross Margin

+87.6%

Operating Margin

+48.0%

Net Margin

+29.3%

Income statement waterfall for Agree Realty (ADC) — TTM through Q1 2026

Net income: $220M

Margin breakdown for Agree Realty (ADC) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$750M	$750M
Cost of Revenue	-$92.7M	$657M
Gross Profit	$657M	$657M
Operating Expenses	-$297M	$360M
Operating Income	$360M	$360M
Other Income / Expense	-$103M	$257M
Pre-tax Income	$257M	$257M
Income Tax	-$410K	$257M
Other Items	-$37.3M	$220M
Net Income	$220M	$220M

Revenue$750M
Cost of Revenue-$92.7M
Gross Profit$657M
Operating Expenses-$297M
Operating Income$360M
Other Income / Expense-$103M
Pre-tax Income$257M
Income Tax-$410K
Other Items-$37.3M
Net Income$220M

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Operating Margin48.0%

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Operations

Employees90.0

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