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 Essex Property Trust (ESS) revenue becomes net income?

For TTM through Q1 2026, Essex Property Trust turned $1.91B of revenue into $576M of net income — a net margin of 30.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Essex Property Trust (ESS) gross, operating, and net margins?

For TTM through Q1 2026, Essex Property Trust reported a gross margin of 69.4%, an operating margin of 38.4%, and a net margin of 30.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Essex Property Trust (ESS) 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.

Essex Property Trust (ESS) Income Statement Waterfall

Revenue

$1.91B

Gross Margin

+69.4%

Operating Margin

+38.4%

Net Margin

+30.2%

Income statement waterfall for Essex Property Trust (ESS) — TTM through Q1 2026

Net income: $576M

Margin breakdown for Essex Property Trust (ESS) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$1.91B	$1.91B
Cost of Revenue	-$583M	$1.32B
Gross Profit	$1.32B	$1.32B
Operating Expenses	-$592M	$732M
Operating Income	$732M	$732M
Other Income / Expense	-$135M	$597M
Pre-tax Income	$597M	$597M
Income Tax	-$257K	$597M
Other Items	-$21.6M	$576M
Net Income	$576M	$576M

Revenue$1.91B
Cost of Revenue-$583M
Gross Profit$1.32B
Operating Expenses-$592M
Operating Income$732M
Other Income / Expense-$135M
Pre-tax Income$597M
Income Tax-$257K
Other Items-$21.6M
Net Income$576M

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