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 Brady (BRC) revenue becomes net income?

For TTM through Q2 2026, Brady turned $1.62B of revenue into $210M of net income — a net margin of 12.9%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Brady (BRC) gross, operating, and net margins?

For TTM through Q2 2026, Brady reported a gross margin of 51.1%, an operating margin of 16.2%, and a net margin of 12.9%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Brady (BRC) 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.

Brady (BRC) Income Statement Waterfall

Revenue

$1.62B

Gross Margin

+51.1%

Operating Margin

+16.2%

Net Margin

+12.9%

Income statement waterfall for Brady (BRC) — TTM through Q2 2026

Net income: $210M

Margin breakdown for Brady (BRC) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$1.62B	$1.62B
Cost of Revenue	-$793M	$829M
Gross Profit	$829M	$829M
Operating Expenses	-$566M	$263M
Operating Income	$263M	$263M
Other Income / Expense	$1.69M	$264M
Pre-tax Income	$264M	$264M
Income Tax	-$54.7M	$210M
Net Income	$210M	$210M

Revenue$1.62B
Cost of Revenue-$793M
Gross Profit$829M
Operating Expenses-$566M
Operating Income$263M
Other Income / Expense$1.69M
Pre-tax Income$264M
Income Tax-$54.7M
Net Income$210M

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