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 MSCI (MSCI) revenue becomes net income?

For TTM through Q2 2026, MSCI turned $3.33B of revenue into $1.36B of net income — a net margin of 40.7%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are MSCI (MSCI) gross, operating, and net margins?

For TTM through Q2 2026, MSCI reported a gross margin of 83%, an operating margin of 55.7%, and a net margin of 40.7%. Each subtotal in the waterfall corresponds to one of these margins.

Why does MSCI (MSCI) 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.

MSCI (MSCI) Income Statement Waterfall

Revenue

$3.33B

Gross Margin

+83.0%

Operating Margin

+55.7%

Net Margin

+40.7%

Income statement waterfall for MSCI (MSCI) — TTM through Q2 2026

Net income: $1.36B

Margin breakdown for MSCI (MSCI) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$3.33B	$3.33B
Cost of Revenue	-$568M	$2.77B
Gross Profit	$2.77B	$2.77B
Operating Expenses	-$910M	$1.86B
Operating Income	$1.86B	$1.86B
Other Income / Expense	-$264M	$1.59B
Pre-tax Income	$1.59B	$1.59B
Income Tax	-$234M	$1.36B
Net Income	$1.36B	$1.36B

Revenue$3.33B
Cost of Revenue-$568M
Gross Profit$2.77B
Operating Expenses-$910M
Operating Income$1.86B
Other Income / Expense-$264M
Pre-tax Income$1.59B
Income Tax-$234M
Net Income$1.36B

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