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 Main Street Capital (MAIN) revenue becomes net income?

For TTM through Q1 2026, Main Street Capital turned $728M of revenue into $426M of net income — a net margin of 58.6%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Main Street Capital (MAIN) gross, operating, and net margins?

For TTM through Q1 2026, Main Street Capital reported a gross margin of 86.4%, an operating margin of 66.8%, and a net margin of 58.6%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Main Street Capital (MAIN) 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.

Main Street Capital (MAIN) Income Statement Waterfall

Revenue

$728M

Gross Margin

+86.4%

Operating Margin

+66.8%

Net Margin

+58.6%

Income statement waterfall for Main Street Capital (MAIN) — TTM through Q1 2026

Net income: $426M

Margin breakdown for Main Street Capital (MAIN) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$728M	$728M
Cost of Revenue	-$99M	$629M
Gross Profit	$629M	$629M
Operating Expenses	-$143M	$486M
Operating Income	$486M	$486M
Other Income / Expense	-$34M	$452M
Pre-tax Income	$452M	$452M
Income Tax	-$25.7M	$426M
Net Income	$426M	$426M

Revenue$728M
Cost of Revenue-$99M
Gross Profit$629M
Operating Expenses-$143M
Operating Income$486M
Other Income / Expense-$34M
Pre-tax Income$452M
Income Tax-$25.7M
Net Income$426M

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