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 Community Bank System (CBU) revenue becomes net income?

For TTM through Q1 2026, Community Bank System turned $1.03B of revenue into $218M of net income — a net margin of 21.3%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Community Bank System (CBU) gross, operating, and net margins?

For TTM through Q1 2026, Community Bank System reported a gross margin of 79.4%, an operating margin of 27.9%, and a net margin of 21.3%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Community Bank System (CBU) 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.

Community Bank System (CBU) Income Statement Waterfall

Revenue

$1.03B

Gross Margin

+79.4%

Operating Margin

+27.9%

Net Margin

+21.3%

Income statement waterfall for Community Bank System (CBU) — TTM through Q1 2026

Net income: $218M

Margin breakdown for Community Bank System (CBU) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$1.03B	$1.03B
Cost of Revenue	-$211M	$815M
Gross Profit	$815M	$815M
Operating Expenses	-$529M	$286M
Operating Income	$286M	$286M
Pre-tax Income	$286M	$286M
Income Tax	-$67.7M	$218M
Net Income	$218M	$218M

Revenue$1.03B
Cost of Revenue-$211M
Gross Profit$815M
Operating Expenses-$529M
Operating Income$286M
Pre-tax Income$286M
Income Tax-$67.7M
Net Income$218M

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