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 Middlesex Water (MSEX) revenue becomes net income?

For TTM through Q1 2026, Middlesex Water turned $199M of revenue into $43.9M of net income — a net margin of 22.1%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Middlesex Water (MSEX) gross, operating, and net margins?

For TTM through Q1 2026, Middlesex Water reported a gross margin of 46.2%, an operating margin of 28.1%, and a net margin of 22.1%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Middlesex Water (MSEX) 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.

Middlesex Water (MSEX) Income Statement Waterfall

Revenue

$199M

Gross Margin

+46.2%

Operating Margin

+28.1%

Net Margin

+22.1%

Income statement waterfall for Middlesex Water (MSEX) — TTM through Q1 2026

Net income: $43.9M

Margin breakdown for Middlesex Water (MSEX) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$199M	$199M
Cost of Revenue	-$107M	$92M
Gross Profit	$92M	$92M
Operating Expenses	-$36.1M	$55.9M
Operating Income	$55.9M	$55.9M
Other Income / Expense	-$7.03M	$48.9M
Pre-tax Income	$48.9M	$48.9M
Income Tax	-$4.95M	$43.9M
Net Income	$43.9M	$43.9M

Revenue$199M
Cost of Revenue-$107M
Gross Profit$92M
Operating Expenses-$36.1M
Operating Income$55.9M
Other Income / Expense-$7.03M
Pre-tax Income$48.9M
Income Tax-$4.95M
Net Income$43.9M

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