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 Q1 2026, Cerebras Systems turned $604M of revenue into $248M of net income — a net margin of 41%. 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 Q1 2026, Cerebras Systems reported a gross margin of 40.3%, an operating margin of -21.9%, and a net margin of 41%. 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

$604M

Gross Margin

+40.3%

Operating Margin

-21.9%

Net Margin

+41.0%

Income statement waterfall for Cerebras Systems (CBRS) — TTM through Q1 2026

Net income: $248M

Margin breakdown for Cerebras Systems (CBRS) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$604M	$604M
Cost of Revenue	-$360M	$244M
Gross Profit	$244M	$244M
Operating Expenses	-$376M	-$132M
Operating Income	-$132M	-$132M
Other Income / Expense	$382M	$249M
Pre-tax Income	$249M	$249M
Income Tax	-$1.5M	$248M
Net Income	$248M	$248M

Revenue$604M
Cost of Revenue-$360M
Gross Profit$244M
Operating Expenses-$376M
Operating Income-$132M
Other Income / Expense$382M
Pre-tax Income$249M
Income Tax-$1.5M
Net Income$248M

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