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 GitLab (GTLB) revenue becomes net income?

For TTM through Q2 2026, GitLab turned $1.00B of revenue into −$25.05M of net income — a net margin of -2.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are GitLab (GTLB) gross, operating, and net margins?

For TTM through Q2 2026, GitLab reported a gross margin of 86.7%, an operating margin of -5.1%, and a net margin of -2.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does GitLab (GTLB) 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.

GitLab (GTLB) Income Statement Waterfall

Revenue

$1.00B

Gross Margin

+86.7%

Operating Margin

-5.1%

Net Margin

-2.5%

Income statement waterfall for GitLab (GTLB) — TTM through Q2 2026

Net income: −$25.05M

Margin breakdown for GitLab (GTLB) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$1.00B	$1.00B
Cost of Revenue	−$133.20M	$871.68M
Gross Profit	$871.68M	$871.68M
Operating Expenses	−$923.30M	−$51.62M
Operating Income	−$51.62M	−$51.62M
Other Income / Expense	$33.73M	−$17.89M
Pre-tax Income	−$17.89M	−$17.89M
Income Tax	−$9.99M	−$27.89M
Other Items	$2.83M	−$25.05M
Net Loss	−$25.05M	−$25.05M

Revenue$1.00B
Cost of Revenue−$133.20M
Gross Profit$871.68M
Operating Expenses−$923.30M
Operating Income−$51.62M
Other Income / Expense$33.73M
Pre-tax Income−$17.89M
Income Tax−$9.99M
Other Items$2.83M
Net Loss−$25.05M

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Buybacks1.33% TTM

No dividends or stock splits on record for this company.

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Income statement waterfall for GitLab (GTLB) — TTM through Q2 2026

Margin breakdown for GitLab (GTLB) — TTM through Q2 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of GitLab (GTLB) revenue becomes net income?

+What are GitLab (GTLB) gross, operating, and net margins?

+Why does GitLab (GTLB) have such a high (or low) gross margin?

+What is the difference between gross, operating, and net margin?

Data & methodology

+What is this view?

+How to read this waterfall

+How is the data calculated?

+What is the USD toggle?

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