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 Franklin Resources (BEN) revenue becomes net income?

For TTM through Q1 2026, Franklin Resources turned $9.03B of revenue into $812M of net income — a net margin of 9%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Franklin Resources (BEN) gross, operating, and net margins?

For TTM through Q1 2026, Franklin Resources reported a gross margin of 73.8%, an operating margin of 9.3%, and a net margin of 9%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Franklin Resources (BEN) 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.

Franklin Resources (BEN) Income Statement Waterfall

Revenue

$9.03B

Gross Margin

+73.8%

Operating Margin

+9.3%

Net Margin

+9.0%

Income statement waterfall for Franklin Resources (BEN) — TTM through Q1 2026

Net income: $812M

Margin breakdown for Franklin Resources (BEN) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$9.03B	$9.03B
Cost of Revenue	-$2.37B	$6.66B
Gross Profit	$6.66B	$6.66B
Operating Expenses	-$5.82B	$844M
Operating Income	$844M	$844M
Other Income / Expense	$485M	$1.33B
Pre-tax Income	$1.33B	$1.33B
Income Tax	-$330M	$999M
Other Items	-$187M	$812M
Net Income	$812M	$812M

Revenue$9.03B
Cost of Revenue-$2.37B
Gross Profit$6.66B
Operating Expenses-$5.82B
Operating Income$844M
Other Income / Expense$485M
Pre-tax Income$1.33B
Income Tax-$330M
Other Items-$187M
Net Income$812M

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Franklin Resources (BEN) Key Financials

Charts, filings, and peer comparison for every metric

Income Statement

Balance Sheet

Profitability

Cash Flow

Capital Return

Forecast & Valuation

Operations

Employees9.8K

Explore more

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

Overview

BEN Overview

Counters