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 Albemarle (ALB) revenue becomes net income?

For TTM through Q1 2026, Albemarle turned $5.49B of revenue into -$233M of net income — a net margin of -4.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Albemarle (ALB) gross, operating, and net margins?

For TTM through Q1 2026, Albemarle reported a gross margin of 18.5%, an operating margin of 5.6%, and a net margin of -4.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Albemarle (ALB) 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.

Albemarle (ALB) Income Statement Waterfall

Revenue

$5.49B

Gross Margin

+18.5%

Operating Margin

+5.6%

Net Margin

-4.2%

Income statement waterfall for Albemarle (ALB) — TTM through Q1 2026

Net income: -$233M

Margin breakdown for Albemarle (ALB) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$5.49B	$5.49B
Cost of Revenue	-$4.48B	$1.02B
Gross Profit	$1.02B	$1.02B
Operating Expenses	-$713M	$305M
Operating Income	$305M	$305M
Other Income / Expense	-$404M	-$99.5M
Pre-tax Income	-$99.5M	-$99.5M
Income Tax	-$182M	-$282M
Other Items	$48.9M	-$233M
Net Loss	-$233M	-$233M

Revenue$5.49B
Cost of Revenue-$4.48B
Gross Profit$1.02B
Operating Expenses-$713M
Operating Income$305M
Other Income / Expense-$404M
Pre-tax Income-$99.5M
Income Tax-$182M
Other Items$48.9M
Net Loss-$233M

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