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 Extra Space Storage (EXR) revenue becomes net income?

For TTM through Q1 2026, Extra Space Storage turned $3.39B of revenue into $944M of net income — a net margin of 27.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Extra Space Storage (EXR) gross, operating, and net margins?

For TTM through Q1 2026, Extra Space Storage reported a gross margin of 27.9%, an operating margin of 43.3%, and a net margin of 27.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Extra Space Storage (EXR) 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.

Extra Space Storage (EXR) Income Statement Waterfall

Revenue

$3.39B

Gross Margin

+27.9%

Operating Margin

+43.3%

Net Margin

+27.8%

Income statement waterfall for Extra Space Storage (EXR) — TTM through Q1 2026

Net income: $944M

Margin breakdown for Extra Space Storage (EXR) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$3.39B	$3.39B
Cost of Revenue	-$2.45B	$946M
Gross Profit	$946M	$946M
Operating Expenses	$522M	$1.47B
Operating Income	$1.47B	$1.47B
Other Income / Expense	-$434M	$1.03B
Pre-tax Income	$1.03B	$1.03B
Income Tax	-$43.4M	$990M
Other Items	-$45.9M	$944M
Net Income	$944M	$944M

Revenue$3.39B
Cost of Revenue-$2.45B
Gross Profit$946M
Operating Expenses$522M
Operating Income$1.47B
Other Income / Expense-$434M
Pre-tax Income$1.03B
Income Tax-$43.4M
Other Items-$45.9M
Net Income$944M

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Extra Space Storage (EXR) Key Financials

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Income Statement

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Profitability

Operating Margin43.3%

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Capital Return

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Operations

Employees8.4K

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