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 CF Industries Holdings (CF) revenue becomes net income?

For TTM through Q1 2026, CF Industries Holdings turned $7.41B of revenue into $1.76B of net income — a net margin of 23.7%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are CF Industries Holdings (CF) gross, operating, and net margins?

For TTM through Q1 2026, CF Industries Holdings reported a gross margin of 40.4%, an operating margin of 35.7%, and a net margin of 23.7%. Each subtotal in the waterfall corresponds to one of these margins.

Why does CF Industries Holdings (CF) 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.

CF Industries Holdings (CF) Income Statement Waterfall

Revenue

$7.41B

Gross Margin

+40.4%

Operating Margin

+35.7%

Net Margin

+23.7%

Income statement waterfall for CF Industries Holdings (CF) — TTM through Q1 2026

Net income: $1.76B

Margin breakdown for CF Industries Holdings (CF) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$7.41B	$7.41B
Cost of Revenue	-$4.41B	$2.99B
Gross Profit	$2.99B	$2.99B
Operating Expenses	-$350M	$2.64B
Operating Income	$2.64B	$2.64B
Other Income / Expense	$3M	$2.65B
Pre-tax Income	$2.65B	$2.65B
Income Tax	-$523M	$2.12B
Other Items	-$365M	$1.76B
Net Income	$1.76B	$1.76B

Revenue$7.41B
Cost of Revenue-$4.41B
Gross Profit$2.99B
Operating Expenses-$350M
Operating Income$2.64B
Other Income / Expense$3M
Pre-tax Income$2.65B
Income Tax-$523M
Other Items-$365M
Net Income$1.76B

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