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 Energy Transfer LP (ET) revenue becomes net income?

For TTM through Q1 2026, Energy Transfer LP turned $89.4B of revenue into $4.83B of net income — a net margin of 5.4%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Energy Transfer LP (ET) gross, operating, and net margins?

For TTM through Q1 2026, Energy Transfer LP reported a gross margin of 22.9%, an operating margin of 11.1%, and a net margin of 5.4%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Energy Transfer LP (ET) 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.

Energy Transfer LP (ET) Income Statement Waterfall

Revenue

$89.4B

Gross Margin

+22.9%

Operating Margin

+11.1%

Net Margin

+5.4%

Income statement waterfall for Energy Transfer LP (ET) — TTM through Q1 2026

Net income: $4.83B

Margin breakdown for Energy Transfer LP (ET) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$89.4B	$89.4B
Cost of Revenue	-$68.9B	$20.5B
Gross Profit	$20.5B	$20.5B
Operating Expenses	-$10.5B	$9.93B
Operating Income	$9.93B	$9.93B
Other Income / Expense	-$3.3B	$6.64B
Pre-tax Income	$6.64B	$6.64B
Income Tax	-$316M	$6.32B
Other Items	-$1.49B	$4.83B
Net Income	$4.83B	$4.83B

Revenue$89.4B
Cost of Revenue-$68.9B
Gross Profit$20.5B
Operating Expenses-$10.5B
Operating Income$9.93B
Other Income / Expense-$3.3B
Pre-tax Income$6.64B
Income Tax-$316M
Other Items-$1.49B
Net Income$4.83B

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