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 Enphase Energy (ENPH) revenue becomes net income?

For TTM through Q1 2026, Enphase Energy turned $1.4B of revenue into $135M of net income — a net margin of 9.6%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Enphase Energy (ENPH) gross, operating, and net margins?

For TTM through Q1 2026, Enphase Energy reported a gross margin of 44.2%, an operating margin of 6.8%, and a net margin of 9.6%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Enphase Energy (ENPH) 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.

Enphase Energy (ENPH) Income Statement Waterfall

Revenue

$1.4B

Gross Margin

+44.2%

Operating Margin

+6.8%

Net Margin

+9.6%

Income statement waterfall for Enphase Energy (ENPH) — TTM through Q1 2026

Net income: $135M

Margin breakdown for Enphase Energy (ENPH) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$1.4B	$1.4B
Cost of Revenue	-$781M	$619M
Gross Profit	$619M	$619M
Operating Expenses	-$524M	$95.3M
Operating Income	$95.3M	$95.3M
Other Income / Expense	$48.7M	$144M
Pre-tax Income	$144M	$144M
Income Tax	-$9.06M	$135M
Net Income	$135M	$135M

Revenue$1.4B
Cost of Revenue-$781M
Gross Profit$619M
Operating Expenses-$524M
Operating Income$95.3M
Other Income / Expense$48.7M
Pre-tax Income$144M
Income Tax-$9.06M
Net Income$135M

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