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 Medical Properties Trust (MPT) revenue becomes net income?

For TTM through Q1 2026, Medical Properties Trust turned $1B of revenue into -$126M of net income — a net margin of -12.6%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Medical Properties Trust (MPT) gross, operating, and net margins?

For TTM through Q1 2026, Medical Properties Trust reported a gross margin of 96.1%, an operating margin of 57%, and a net margin of -12.6%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Medical Properties Trust (MPT) 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.

Medical Properties Trust (MPT) Income Statement Waterfall

Revenue

$1B

Gross Margin

+96.1%

Operating Margin

+57.0%

Net Margin

-12.6%

Income statement waterfall for Medical Properties Trust (MPT) — TTM through Q1 2026

Net income: -$126M

Margin breakdown for Medical Properties Trust (MPT) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$1B	$1B
Cost of Revenue	-$39.3M	$961M
Gross Profit	$961M	$961M
Operating Expenses	-$391M	$570M
Operating Income	$570M	$570M
Other Income / Expense	-$698M	-$128M
Pre-tax Income	-$128M	-$128M
Tax Benefit	$3.64M	-$125M
Net Loss	-$126M	-$126M

Revenue$1B
Cost of Revenue-$39.3M
Gross Profit$961M
Operating Expenses-$391M
Operating Income$570M
Other Income / Expense-$698M
Pre-tax Income-$128M
Tax Benefit$3.64M
Net Loss-$126M

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Operating Margin57.0%

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Operations

Employees121.0

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