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 Ames National (ATLO) revenue becomes net income?

For TTM through Q2 2026, Ames National turned $84.1M of revenue into $23M of net income — a net margin of 27.3%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Ames National (ATLO) gross, operating, and net margins?

For TTM through Q2 2026, Ames National reported a gross margin of 73.5%, an operating margin of 34.2%, and a net margin of 27.3%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Ames National (ATLO) 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.

Ames National (ATLO) Income Statement Waterfall

Revenue

$84.1M

Gross Margin

+73.5%

Operating Margin

+34.2%

Net Margin

+27.3%

Income statement waterfall for Ames National (ATLO) — TTM through Q2 2026

Net income: $23M

Margin breakdown for Ames National (ATLO) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$84.1M	$84.1M
Cost of Revenue	-$22.3M	$61.8M
Gross Profit	$61.8M	$61.8M
Operating Expenses	-$33.1M	$28.7M
Operating Income	$28.7M	$28.7M
Other Income / Expense	$660K	$29.4M
Pre-tax Income	$29.4M	$29.4M
Income Tax	-$6.43M	$23M
Net Income	$23M	$23M

Revenue$84.1M
Cost of Revenue-$22.3M
Gross Profit$61.8M
Operating Expenses-$33.1M
Operating Income$28.7M
Other Income / Expense$660K
Pre-tax Income$29.4M
Income Tax-$6.43M
Net Income$23M

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