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 Equity Residential (EQR) revenue becomes net income?

For TTM through Q2 2026, Equity Residential turned $3.14B of revenue into $875M of net income — a net margin of 27.9%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Equity Residential (EQR) gross, operating, and net margins?

For TTM through Q2 2026, Equity Residential reported a gross margin of 46%, an operating margin of 28.1%, and a net margin of 27.9%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Equity Residential (EQR) 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.

Equity Residential (EQR) Income Statement Waterfall

Revenue

$3.14B

Gross Margin

+46.0%

Operating Margin

+28.1%

Net Margin

+27.9%

Income statement waterfall for Equity Residential (EQR) — TTM through Q2 2026

Net income: $875M

Margin breakdown for Equity Residential (EQR) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$3.14B	$3.14B
Cost of Revenue	-$1.69B	$1.44B
Gross Profit	$1.44B	$1.44B
Operating Expenses	-$560M	$882M
Operating Income	$882M	$882M
Other Income / Expense	$20.8M	$903M
Pre-tax Income	$903M	$903M
Income Tax	-$3.63M	$899M
Other Items	-$23.9M	$875M
Net Income	$875M	$875M

Revenue$3.14B
Cost of Revenue-$1.69B
Gross Profit$1.44B
Operating Expenses-$560M
Operating Income$882M
Other Income / Expense$20.8M
Pre-tax Income$903M
Income Tax-$3.63M
Other Items-$23.9M
Net Income$875M

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Equity Residential (EQR) Key Financials

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Profitability

Operating Margin28.1%

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Operations

Employees2.4K

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