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 F5 (FFIV) revenue becomes net income?

For TTM through Q1 2026, F5 turned $3.22B of revenue into $708M of net income — a net margin of 22%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are F5 (FFIV) gross, operating, and net margins?

For TTM through Q1 2026, F5 reported a gross margin of 81.9%, an operating margin of 24.6%, and a net margin of 22%. Each subtotal in the waterfall corresponds to one of these margins.

Why does F5 (FFIV) 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.

F5 (FFIV) Income Statement Waterfall

Revenue

$3.22B

Gross Margin

+81.9%

Operating Margin

+24.6%

Net Margin

+22.0%

Income statement waterfall for F5 (FFIV) — TTM through Q1 2026

Net income: $708M

Margin breakdown for F5 (FFIV) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$3.22B	$3.22B
Cost of Revenue	-$584M	$2.64B
Gross Profit	$2.64B	$2.64B
Operating Expenses	-$1.85B	$795M
Operating Income	$795M	$795M
Other Income / Expense	$45.4M	$840M
Pre-tax Income	$840M	$840M
Income Tax	-$132M	$708M
Net Income	$708M	$708M

Revenue$3.22B
Cost of Revenue-$584M
Gross Profit$2.64B
Operating Expenses-$1.85B
Operating Income$795M
Other Income / Expense$45.4M
Pre-tax Income$840M
Income Tax-$132M
Net Income$708M

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