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 Broadridge Financial Solutions (BR) revenue becomes net income?

For TTM through Q1 2026, Broadridge Financial Solutions turned $7.32B of revenue into $1.1B of net income — a net margin of 15%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Broadridge Financial Solutions (BR) gross, operating, and net margins?

For TTM through Q1 2026, Broadridge Financial Solutions reported a gross margin of 31.3%, an operating margin of 17.1%, and a net margin of 15%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Broadridge Financial Solutions (BR) 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.

Broadridge Financial Solutions (BR) Income Statement Waterfall

Revenue

$7.32B

Gross Margin

+31.3%

Operating Margin

+17.1%

Net Margin

+15.0%

Income statement waterfall for Broadridge Financial Solutions (BR) — TTM through Q1 2026

Net income: $1.1B

Margin breakdown for Broadridge Financial Solutions (BR) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$7.32B	$7.32B
Cost of Revenue	-$5.03B	$2.29B
Gross Profit	$2.29B	$2.29B
Operating Expenses	-$1.04B	$1.26B
Operating Income	$1.26B	$1.26B
Other Income / Expense	$140M	$1.4B
Pre-tax Income	$1.4B	$1.4B
Income Tax	-$295M	$1.1B
Net Income	$1.1B	$1.1B

Revenue$7.32B
Cost of Revenue-$5.03B
Gross Profit$2.29B
Operating Expenses-$1.04B
Operating Income$1.26B
Other Income / Expense$140M
Pre-tax Income$1.4B
Income Tax-$295M
Net Income$1.1B

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