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 Invitation Homes (INVH) revenue becomes net income?

For TTM through Q1 2026, Invitation Homes turned $2.79B of revenue into $583M of net income — a net margin of 20.9%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Invitation Homes (INVH) gross, operating, and net margins?

For TTM through Q1 2026, Invitation Homes reported a gross margin of 45%, an operating margin of 31.2%, and a net margin of 20.9%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Invitation Homes (INVH) 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.

Invitation Homes (INVH) Income Statement Waterfall

Revenue

$2.79B

Gross Margin

+45.0%

Operating Margin

+31.2%

Net Margin

+20.9%

Income statement waterfall for Invitation Homes (INVH) — TTM through Q1 2026

Net income: $583M

Margin breakdown for Invitation Homes (INVH) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$2.79B	$2.79B
Cost of Revenue	-$1.53B	$1.26B
Gross Profit	$1.26B	$1.26B
Operating Expenses	-$387M	$869M
Operating Income	$869M	$869M
Other Income / Expense	-$340M	$530M
Pre-tax Income	$530M	$530M
Income Tax	$0.00	$530M
Other Items	$52.9M	$583M
Net Income	$583M	$583M

Revenue$2.79B
Cost of Revenue-$1.53B
Gross Profit$1.26B
Operating Expenses-$387M
Operating Income$869M
Other Income / Expense-$340M
Pre-tax Income$530M
Income Tax$0.00
Other Items$52.9M
Net Income$583M

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Invitation Homes (INVH) Key Financials

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Profitability

Operating Margin31.2%

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Operations

Employees100.0

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