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 Black Hills (BKH) revenue becomes net income?

For TTM through Q1 2026, Black Hills turned $2.29B of revenue into $288M of net income — a net margin of 12.6%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Black Hills (BKH) gross, operating, and net margins?

For TTM through Q1 2026, Black Hills reported a gross margin of 35.7%, an operating margin of 23.3%, and a net margin of 12.6%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Black Hills (BKH) 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.

Black Hills (BKH) Income Statement Waterfall

Revenue

$2.29B

Gross Margin

+35.7%

Operating Margin

+23.3%

Net Margin

+12.6%

Income statement waterfall for Black Hills (BKH) — TTM through Q1 2026

Net income: $288M

Margin breakdown for Black Hills (BKH) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$2.29B	$2.29B
Cost of Revenue	-$1.47B	$815M
Gross Profit	$815M	$815M
Operating Expenses	-$282M	$533M
Operating Income	$533M	$533M
Other Income / Expense	-$193M	$340M
Pre-tax Income	$340M	$340M
Income Tax	-$43.2M	$296M
Other Items	-$8.1M	$288M
Net Income	$288M	$288M

Revenue$2.29B
Cost of Revenue-$1.47B
Gross Profit$815M
Operating Expenses-$282M
Operating Income$533M
Other Income / Expense-$193M
Pre-tax Income$340M
Income Tax-$43.2M
Other Items-$8.1M
Net Income$288M

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