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 Assured Guaranty (AGO) revenue becomes net income?

For TTM through Q1 2026, Assured Guaranty turned $951M of revenue into $415M of net income — a net margin of 43.6%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Assured Guaranty (AGO) gross, operating, and net margins?

For TTM through Q1 2026, Assured Guaranty reported a gross margin of 94.6%, an operating margin of 49.1%, and a net margin of 43.6%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Assured Guaranty (AGO) 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.

Assured Guaranty (AGO) Income Statement Waterfall

Revenue

$951M

Gross Margin

+94.6%

Operating Margin

+49.1%

Net Margin

+43.6%

Income statement waterfall for Assured Guaranty (AGO) — TTM through Q1 2026

Net income: $415M

Margin breakdown for Assured Guaranty (AGO) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$951M	$951M
Cost of Revenue	-$51M	$900M
Gross Profit	$900M	$900M
Operating Expenses	-$433M	$467M
Operating Income	$467M	$467M
Other Income / Expense	$31M	$498M
Pre-tax Income	$498M	$498M
Income Tax	-$55M	$443M
Other Items	-$28M	$415M
Net Income	$415M	$415M

Revenue$951M
Cost of Revenue-$51M
Gross Profit$900M
Operating Expenses-$433M
Operating Income$467M
Other Income / Expense$31M
Pre-tax Income$498M
Income Tax-$55M
Other Items-$28M
Net Income$415M

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Assured Guaranty (AGO) Key Financials

Charts, filings, and peer comparison for every metric

Income Statement

Balance Sheet

Profitability

Cash Flow

Capital Return

Forecast & Valuation

Operations

Employees367.0

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

AGO Overview

Counters