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 Brookfield Asset Management (BAM) revenue becomes net income?

For TTM through Q1 2026, Brookfield Asset Management turned $4.79B of revenue into $2.5B of net income — a net margin of 52.3%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Brookfield Asset Management (BAM) gross, operating, and net margins?

For TTM through Q1 2026, Brookfield Asset Management reported a gross margin of 71.8%, an operating margin of 63.1%, and a net margin of 52.3%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Brookfield Asset Management (BAM) 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.

Brookfield Asset Management (BAM) Income Statement Waterfall

Revenue

$4.79B

Gross Margin

+71.8%

Operating Margin

+63.1%

Net Margin

+52.3%

Income statement waterfall for Brookfield Asset Management (BAM) — TTM through Q1 2026

Net income: $2.5B

Margin breakdown for Brookfield Asset Management (BAM) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$4.79B	$4.79B
Cost of Revenue	-$1.35B	$3.44B
Gross Profit	$3.44B	$3.44B
Operating Expenses	-$417M	$3.02B
Operating Income	$3.02B	$3.02B
Other Income / Expense	$8.39M	$3.03B
Pre-tax Income	$3.03B	$3.03B
Income Tax	-$560M	$2.47B
Other Items	$35.5M	$2.5B
Net Income	$2.5B	$2.5B

Revenue$4.79B
Cost of Revenue-$1.35B
Gross Profit$3.44B
Operating Expenses-$417M
Operating Income$3.02B
Other Income / Expense$8.39M
Pre-tax Income$3.03B
Income Tax-$560M
Other Items$35.5M
Net Income$2.5B

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