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 Elastic N.V. (ESTC) revenue becomes net income?

For TTM through Q2 2026, Elastic N.V. turned $1.74B of revenue into $368M of net income — a net margin of 21.1%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Elastic N.V. (ESTC) gross, operating, and net margins?

For TTM through Q2 2026, Elastic N.V. reported a gross margin of 76.1%, an operating margin of -1.9%, and a net margin of 21.1%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Elastic N.V. (ESTC) 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.

Elastic N.V. (ESTC) Income Statement Waterfall

Revenue

$1.74B

Gross Margin

+76.1%

Operating Margin

-1.9%

Net Margin

+21.1%

Income statement waterfall for Elastic N.V. (ESTC) — TTM through Q2 2026

Net income: $368M

Margin breakdown for Elastic N.V. (ESTC) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$1.74B	$1.74B
Cost of Revenue	-$416M	$1.32B
Gross Profit	$1.32B	$1.32B
Operating Expenses	-$1.36B	-$33.5M
Operating Income	-$33.5M	-$33.5M
Other Income / Expense	$31.2M	-$2.3M
Pre-tax Income	-$2.3M	-$2.3M
Tax Benefit	$370M	$368M
Net Income	$368M	$368M

Revenue$1.74B
Cost of Revenue-$416M
Gross Profit$1.32B
Operating Expenses-$1.36B
Operating Income-$33.5M
Other Income / Expense$31.2M
Pre-tax Income-$2.3M
Tax Benefit$370M
Net Income$368M

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