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 Li Auto (LI) revenue becomes net income?

For TTM through Q1 2026, Li Auto turned 108.98B CNY of revenue into −1.80B CNY of net income — a net margin of -1.7%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Li Auto (LI) gross, operating, and net margins?

For TTM through Q1 2026, Li Auto reported a gross margin of 16%, an operating margin of -3.9%, and a net margin of -1.7%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Li Auto (LI) 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.

Li Auto (LI) Income Statement Waterfall

Revenue

108.98B CNY

Gross Margin

+16.0%

Operating Margin

-3.9%

Net Margin

-1.7%

Income statement waterfall for Li Auto (LI) — TTM through Q1 2026

Net income: −1.80B CNY

Margin breakdown for Li Auto (LI) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	108.98B CNY	108.98B CNY
Cost of Revenue	−91.56B CNY	17.42B CNY
Gross Profit	17.42B CNY	17.42B CNY
Operating Expenses	−21.63B CNY	−4.21B CNY
Operating Income	−4.21B CNY	−4.21B CNY
Other Income / Expense	2.15B CNY	−2.06B CNY
Pre-tax Income	−2.06B CNY	−2.06B CNY
Tax Benefit	292.08M CNY	−1.77B CNY
Other Items	−31.91M CNY	−1.80B CNY
Net Loss	−1.80B CNY	−1.80B CNY

Revenue108.98B CNY
Cost of Revenue−91.56B CNY
Gross Profit17.42B CNY
Operating Expenses−21.63B CNY
Operating Income−4.21B CNY
Other Income / Expense2.15B CNY
Pre-tax Income−2.06B CNY
Tax Benefit292.08M CNY
Other Items−31.91M CNY
Net Loss−1.80B CNY

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Income statement waterfall for Li Auto (LI) — TTM through Q1 2026

Margin breakdown for Li Auto (LI) — TTM through Q1 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of Li Auto (LI) revenue becomes net income?

+What are Li Auto (LI) gross, operating, and net margins?

+Why does Li Auto (LI) 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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