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 EQT (EQT) revenue becomes net income?

For TTM through Q2 2026, EQT turned $9.29B of revenue into $2.85B of net income — a net margin of 30.7%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are EQT (EQT) gross, operating, and net margins?

For TTM through Q2 2026, EQT reported a gross margin of 68.4%, an operating margin of 43.2%, and a net margin of 30.7%. Each subtotal in the waterfall corresponds to one of these margins.

Why does EQT (EQT) 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.

EQT (EQT) Income Statement Waterfall

Revenue

$9.29B

Gross Margin

+68.4%

Operating Margin

+43.2%

Net Margin

+30.7%

Income statement waterfall for EQT (EQT) — TTM through Q2 2026

Net income: $2.85B

Margin breakdown for EQT (EQT) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$9.29B	$9.29B
Cost of Revenue	-$2.93B	$6.35B
Gross Profit	$6.35B	$6.35B
Operating Expenses	-$2.34B	$4.01B
Operating Income	$4.01B	$4.01B
Other Income / Expense	-$163M	$3.84B
Pre-tax Income	$3.84B	$3.84B
Income Tax	-$856M	$2.99B
Other Items	-$141M	$2.85B
Net Income	$2.85B	$2.85B

Revenue$9.29B
Cost of Revenue-$2.93B
Gross Profit$6.35B
Operating Expenses-$2.34B
Operating Income$4.01B
Other Income / Expense-$163M
Pre-tax Income$3.84B
Income Tax-$856M
Other Items-$141M
Net Income$2.85B

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