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 IREN (IREN) revenue becomes net income?

For TTM through Q1 2026, IREN turned $757M of revenue into $76.9M of net income — a net margin of 10.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are IREN (IREN) gross, operating, and net margins?

For TTM through Q1 2026, IREN reported a gross margin of 53.6%, an operating margin of -29.2%, and a net margin of 10.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does IREN (IREN) 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.

IREN (IREN) Income Statement Waterfall

Revenue

$757M

Gross Margin

+53.6%

Operating Margin

-29.2%

Net Margin

+10.2%

Income statement waterfall for IREN (IREN) — TTM through Q1 2026

Net income: $76.9M

Margin breakdown for IREN (IREN) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$757M	$757M
Cost of Revenue	-$351M	$406M
Gross Profit	$406M	$406M
Operating Expenses	-$627M	-$221M
Operating Income	-$221M	-$221M
Other Income / Expense	$297M	$76.1M
Pre-tax Income	$76.1M	$76.1M
Tax Benefit	$850K	$76.9M
Net Income	$76.9M	$76.9M

Revenue$757M
Cost of Revenue-$351M
Gross Profit$406M
Operating Expenses-$627M
Operating Income-$221M
Other Income / Expense$297M
Pre-tax Income$76.1M
Tax Benefit$850K
Net Income$76.9M

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