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 Corpay (CPAY) revenue becomes net income?

For TTM through Q1 2026, Corpay turned $4.78B of revenue into $1.18B of net income — a net margin of 24.6%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Corpay (CPAY) gross, operating, and net margins?

For TTM through Q1 2026, Corpay reported a gross margin of 72.8%, an operating margin of 43%, and a net margin of 24.6%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Corpay (CPAY) 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.

Corpay (CPAY) Income Statement Waterfall

Revenue

$4.78B

Gross Margin

+72.8%

Operating Margin

+43.0%

Net Margin

+24.6%

Income statement waterfall for Corpay (CPAY) — TTM through Q1 2026

Net income: $1.18B

Margin breakdown for Corpay (CPAY) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$4.78B	$4.78B
Cost of Revenue	-$1.3B	$3.48B
Gross Profit	$3.48B	$3.48B
Operating Expenses	-$1.43B	$2.06B
Operating Income	$2.06B	$2.06B
Other Income / Expense	-$337M	$1.72B
Pre-tax Income	$1.72B	$1.72B
Income Tax	-$537M	$1.18B
Net Income	$1.18B	$1.18B

Revenue$4.78B
Cost of Revenue-$1.3B
Gross Profit$3.48B
Operating Expenses-$1.43B
Operating Income$2.06B
Other Income / Expense-$337M
Pre-tax Income$1.72B
Income Tax-$537M
Net Income$1.18B

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