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 Fastly (FSLY) revenue becomes net income?

For TTM through Q1 2026, Fastly turned $653M of revenue into -$103M of net income — a net margin of -15.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Fastly (FSLY) gross, operating, and net margins?

For TTM through Q1 2026, Fastly reported a gross margin of 58.7%, an operating margin of -15.9%, and a net margin of -15.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Fastly (FSLY) 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.

Fastly (FSLY) Income Statement Waterfall

Revenue

$653M

Gross Margin

+58.7%

Operating Margin

-15.9%

Net Margin

-15.8%

Income statement waterfall for Fastly (FSLY) — TTM through Q1 2026

Net income: -$103M

Margin breakdown for Fastly (FSLY) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$653M	$653M
Cost of Revenue	-$270M	$383M
Gross Profit	$383M	$383M
Operating Expenses	-$487M	-$104M
Operating Income	-$104M	-$104M
Other Income / Expense	-$1.31M	-$105M
Pre-tax Income	-$105M	-$105M
Tax Benefit	$2.33M	-$103M
Net Loss	-$103M	-$103M

Revenue$653M
Cost of Revenue-$270M
Gross Profit$383M
Operating Expenses-$487M
Operating Income-$104M
Other Income / Expense-$1.31M
Pre-tax Income-$105M
Tax Benefit$2.33M
Net Loss-$103M

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Fastly (FSLY) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

FSLY Overview

Counters

Income Statement

Cash Flow

Capital Return

Buybacks

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation