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 Host Hotels & Resorts (HST) revenue becomes net income?

For TTM through Q1 2026, Host Hotels & Resorts turned $6.17B of revenue into $1.01B of net income — a net margin of 16.4%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Host Hotels & Resorts (HST) gross, operating, and net margins?

For TTM through Q1 2026, Host Hotels & Resorts reported a gross margin of 27.8%, an operating margin of 14.3%, and a net margin of 16.4%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Host Hotels & Resorts (HST) 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.

Host Hotels & Resorts (HST) Income Statement Waterfall

Revenue

$6.17B

Gross Margin

+27.8%

Operating Margin

+14.3%

Net Margin

+16.4%

Income statement waterfall for Host Hotels & Resorts (HST) — TTM through Q1 2026

Net income: $1.01B

Margin breakdown for Host Hotels & Resorts (HST) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$6.17B	$6.17B
Cost of Revenue	-$4.45B	$1.71B
Gross Profit	$1.71B	$1.71B
Operating Expenses	-$832M	$882M
Operating Income	$882M	$882M
Other Income / Expense	$204M	$1.09B
Pre-tax Income	$1.09B	$1.09B
Income Tax	-$60M	$1.03B
Other Items	-$15M	$1.01B
Net Income	$1.01B	$1.01B

Revenue$6.17B
Cost of Revenue-$4.45B
Gross Profit$1.71B
Operating Expenses-$832M
Operating Income$882M
Other Income / Expense$204M
Pre-tax Income$1.09B
Income Tax-$60M
Other Items-$15M
Net Income$1.01B

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Host Hotels & Resorts (HST) Key Financials

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Income Statement

Balance Sheet

Profitability

Operating Margin14.3%

Cash Flow

Capital Return

Forecast & Valuation

Operations

Employees162.0

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