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 Fair Isaac (FICO) revenue becomes net income?

For TTM through Q1 2026, Fair Isaac turned $2.26B of revenue into $760M of net income — a net margin of 33.7%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Fair Isaac (FICO) gross, operating, and net margins?

For TTM through Q1 2026, Fair Isaac reported a gross margin of 84.2%, an operating margin of 50.4%, and a net margin of 33.7%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Fair Isaac (FICO) 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.

Fair Isaac (FICO) Income Statement Waterfall

Revenue

$2.26B

Gross Margin

+84.2%

Operating Margin

+50.4%

Net Margin

+33.7%

Income statement waterfall for Fair Isaac (FICO) — TTM through Q1 2026

Net income: $760M

Margin breakdown for Fair Isaac (FICO) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$2.26B	$2.26B
Cost of Revenue	-$357M	$1.9B
Gross Profit	$1.9B	$1.9B
Operating Expenses	-$762M	$1.14B
Operating Income	$1.14B	$1.14B
Other Income / Expense	-$149M	$987M
Pre-tax Income	$987M	$987M
Income Tax	-$228M	$760M
Net Income	$760M	$760M

Revenue$2.26B
Cost of Revenue-$357M
Gross Profit$1.9B
Operating Expenses-$762M
Operating Income$1.14B
Other Income / Expense-$149M
Pre-tax Income$987M
Income Tax-$228M
Net Income$760M

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