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 MGE Energy (MGEE) revenue becomes net income?

For TTM through Q1 2026, MGE Energy turned $767M of revenue into $143M of net income — a net margin of 18.6%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are MGE Energy (MGEE) gross, operating, and net margins?

For TTM through Q1 2026, MGE Energy reported a gross margin of 77.2%, an operating margin of 22.3%, and a net margin of 18.6%. Each subtotal in the waterfall corresponds to one of these margins.

Why does MGE Energy (MGEE) 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.

MGE Energy (MGEE) Income Statement Waterfall

Revenue

$767M

Gross Margin

+77.2%

Operating Margin

+22.3%

Net Margin

+18.6%

Income statement waterfall for MGE Energy (MGEE) — TTM through Q1 2026

Net income: $143M

Margin breakdown for MGE Energy (MGEE) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$767M	$767M
Cost of Revenue	-$175M	$592M
Gross Profit	$592M	$592M
Operating Expenses	-$421M	$171M
Operating Income	$171M	$171M
Other Income / Expense	-$7.84M	$163M
Pre-tax Income	$163M	$163M
Income Tax	-$20.3M	$143M
Net Income	$143M	$143M

Revenue$767M
Cost of Revenue-$175M
Gross Profit$592M
Operating Expenses-$421M
Operating Income$171M
Other Income / Expense-$7.84M
Pre-tax Income$163M
Income Tax-$20.3M
Net Income$143M

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