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 FedEx Freight Holding Company (FDXF) revenue becomes net income?

For TTM through Q1 2026, FedEx Freight Holding Company turned $8.7B of revenue into $584M of net income — a net margin of 6.7%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are FedEx Freight Holding Company (FDXF) gross, operating, and net margins?

For TTM through Q1 2026, FedEx Freight Holding Company reported a gross margin of 29.1%, an operating margin of 8.2%, and a net margin of 6.7%. Each subtotal in the waterfall corresponds to one of these margins.

Why does FedEx Freight Holding Company (FDXF) 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.

FedEx Freight Holding Company (FDXF) Income Statement Waterfall

Revenue

$8.7B

Gross Margin

+29.1%

Operating Margin

+8.2%

Net Margin

+6.7%

Income statement waterfall for FedEx Freight Holding Company (FDXF) — TTM through Q1 2026

Net income: $584M

Margin breakdown for FedEx Freight Holding Company (FDXF) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$8.7B	$8.7B
Cost of Revenue	-$6.16B	$2.53B
Gross Profit	$2.53B	$2.53B
Operating Expenses	-$1.82B	$714M
Operating Income	$714M	$714M
Other Income / Expense	$71.5M	$785M
Pre-tax Income	$785M	$785M
Income Tax	-$202M	$584M
Net Income	$584M	$584M

Revenue$8.7B
Cost of Revenue-$6.16B
Gross Profit$2.53B
Operating Expenses-$1.82B
Operating Income$714M
Other Income / Expense$71.5M
Pre-tax Income$785M
Income Tax-$202M
Net Income$584M

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