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 Aehr Test Systems (AEHR) revenue becomes net income?

For TTM through Q1 2026, Aehr Test Systems turned $45.26M of revenue into −$11.42M of net income — a net margin of -25.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Aehr Test Systems (AEHR) gross, operating, and net margins?

For TTM through Q1 2026, Aehr Test Systems reported a gross margin of 30.7%, an operating margin of -34.3%, and a net margin of -25.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Aehr Test Systems (AEHR) 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.

Aehr Test Systems (AEHR) Income Statement Waterfall

Revenue

$45.26M

Gross Margin

+30.7%

Operating Margin

-34.3%

Net Margin

-25.2%

Income statement waterfall for Aehr Test Systems (AEHR) — TTM through Q1 2026

Net income: −$11.42M

Margin breakdown for Aehr Test Systems (AEHR) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$45.26M	$45.26M
Cost of Revenue	−$31.35M	$13.90M
Gross Profit	$13.90M	$13.90M
Operating Expenses	−$29.41M	−$15.50M
Operating Income	−$15.50M	−$15.50M
Other Income / Expense	$1.24M	−$14.27M
Pre-tax Income	−$14.27M	−$14.27M
Tax Benefit	$2.85M	−$11.42M
Net Loss	−$11.42M	−$11.42M

Revenue$45.26M
Cost of Revenue−$31.35M
Gross Profit$13.90M
Operating Expenses−$29.41M
Operating Income−$15.50M
Other Income / Expense$1.24M
Pre-tax Income−$14.27M
Tax Benefit$2.85M
Net Loss−$11.42M

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Buybacks0.13% TTM

No dividends or stock splits on record for this company.

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Income statement waterfall for Aehr Test Systems (AEHR) — TTM through Q1 2026

Margin breakdown for Aehr Test Systems (AEHR) — TTM through Q1 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of Aehr Test Systems (AEHR) revenue becomes net income?

+What are Aehr Test Systems (AEHR) gross, operating, and net margins?

+Why does Aehr Test Systems (AEHR) have such a high (or low) gross margin?

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

Data & methodology

+What is this view?

+How to read this waterfall

+How is the data calculated?

+What is the USD toggle?

Aehr Test Systems (AEHR) Key Financials

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