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 Cullen/Frost Bankers (CFR) revenue becomes net income?

For TTM through Q1 2026, Cullen/Frost Bankers turned $2.79B of revenue into $669M of net income — a net margin of 24%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Cullen/Frost Bankers (CFR) gross, operating, and net margins?

For TTM through Q1 2026, Cullen/Frost Bankers reported a gross margin of 80.1%, an operating margin of 28.5%, and a net margin of 24%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Cullen/Frost Bankers (CFR) 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.

Cullen/Frost Bankers (CFR) Income Statement Waterfall

Revenue

$2.79B

Gross Margin

+80.1%

Operating Margin

+28.5%

Net Margin

+24.0%

Income statement waterfall for Cullen/Frost Bankers (CFR) — TTM through Q1 2026

Net income: $669M

Margin breakdown for Cullen/Frost Bankers (CFR) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$2.79B	$2.79B
Cost of Revenue	-$554M	$2.23B
Gross Profit	$2.23B	$2.23B
Operating Expenses	-$1.44B	$795M
Operating Income	$795M	$795M
Pre-tax Income	$795M	$795M
Income Tax	-$126M	$669M
Net Income	$669M	$669M

Revenue$2.79B
Cost of Revenue-$554M
Gross Profit$2.23B
Operating Expenses-$1.44B
Operating Income$795M
Pre-tax Income$795M
Income Tax-$126M
Net Income$669M

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Cullen/Frost Bankers (CFR) Key Financials

Charts, filings, and peer comparison for every metric

Income Statement

Balance Sheet

Profitability

Cash Flow

Capital Return

Forecast & Valuation

Operations

Employees6.0K

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

CFR Overview

Counters