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 Cerebras Systems (CBRS) revenue becomes net income?

For TTM through Q4 2025, Cerebras Systems turned $509.99M of revenue into $237.83M of net income — a net margin of 46.6%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Cerebras Systems (CBRS) gross, operating, and net margins?

For TTM through Q4 2025, Cerebras Systems reported a gross margin of 39%, an operating margin of -28.6%, and a net margin of 46.6%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Cerebras Systems (CBRS) 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.

Cerebras Systems (CBRS) Income Statement Waterfall

Revenue

$509.99M

Gross Margin

+39.0%

Operating Margin

-28.6%

Net Margin

+46.6%

Income statement waterfall for Cerebras Systems (CBRS) — TTM through Q4 2025

Net income: $237.83M

Margin breakdown for Cerebras Systems (CBRS) — TTM through Q4 2025

Line item	Amount	Running total
Revenue	$509.99M	$509.99M
Cost of Revenue	−$310.92M	$199.07M
Gross Profit	$199.07M	$199.07M
Operating Expenses	−$344.93M	−$145.86M
Operating Income	−$145.86M	−$145.86M
Other Income / Expense	$383.69M	$237.83M
Pre-tax Income	$237.83M	$237.83M
Income Tax	$0.00	$237.83M
Net Income	$237.83M	$237.83M

Revenue$509.99M
Cost of Revenue−$310.92M
Gross Profit$199.07M
Operating Expenses−$344.93M
Operating Income−$145.86M
Other Income / Expense$383.69M
Pre-tax Income$237.83M
Income Tax$0.00
Net Income$237.83M

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Income statement waterfall for Cerebras Systems (CBRS) — TTM through Q4 2025

Margin breakdown for Cerebras Systems (CBRS) — TTM through Q4 2025

Frequently asked questions

+What is an income statement waterfall?

+How much of Cerebras Systems (CBRS) revenue becomes net income?

+What are Cerebras Systems (CBRS) gross, operating, and net margins?

+Why does Cerebras Systems (CBRS) have such a high (or low) gross margin?

+What is the difference between gross, operating, and net margin?

Data & methodology

+What is this view?

+How to read this waterfall

+How is the data calculated?

+What is the USD toggle?

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