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 Lyft (LYFT) revenue becomes net income?

For TTM through Q1 2026, Lyft turned $6.52B of revenue into $2.86B of net income — a net margin of 43.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Lyft (LYFT) gross, operating, and net margins?

For TTM through Q1 2026, Lyft reported a gross margin of 43.2%, an operating margin of -2.5%, and a net margin of 43.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Lyft (LYFT) 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.

Lyft (LYFT) Income Statement Waterfall

Revenue

$6.52B

Gross Margin

+43.2%

Operating Margin

-2.5%

Net Margin

+43.8%

Income statement waterfall for Lyft (LYFT) — TTM through Q1 2026

Net income: $2.86B

Margin breakdown for Lyft (LYFT) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$6.52B	$6.52B
Cost of Revenue	-$3.7B	$2.82B
Gross Profit	$2.82B	$2.82B
Operating Expenses	-$2.98B	-$165M
Operating Income	-$165M	-$165M
Other Income / Expense	$125M	-$39.4M
Pre-tax Income	-$39.4M	-$39.4M
Tax Benefit	$2.9B	$2.86B
Net Income	$2.86B	$2.86B

Revenue$6.52B
Cost of Revenue-$3.7B
Gross Profit$2.82B
Operating Expenses-$2.98B
Operating Income-$165M
Other Income / Expense$125M
Pre-tax Income-$39.4M
Tax Benefit$2.9B
Net Income$2.86B

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Lyft (LYFT) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

LYFT Overview

Counters

Income Statement

Cash Flow

Capital Return

Buybacks14.43% TTM

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation