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 Strategy (MSTR) revenue becomes net income?

For TTM through Q1 2026, Strategy turned $500.28M of revenue into −$34.92B of net income — a net margin of -6980.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Strategy (MSTR) gross, operating, and net margins?

For TTM through Q1 2026, Strategy reported a gross margin of 67.7%, an operating margin of -2715.4%, and a net margin of -6980.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Strategy (MSTR) 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.

Strategy (MSTR) Income Statement Waterfall

Revenue

$500.28M

Gross Margin

+67.7%

Operating Margin

-2715.4%

Net Margin

-6980.2%

Income statement waterfall for Strategy (MSTR) — TTM through Q1 2026

Net income: −$34.92B

Margin breakdown for Strategy (MSTR) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$500.28M	$500.28M
Cost of Revenue	−$161.59M	$338.69M
Gross Profit	$338.69M	$338.69M
Operating Expenses	−$13.92B	−$13.58B
Operating Income	−$13.58B	−$13.58B
Other Income / Expense	−$28.94B	−$42.52B
Pre-tax Income	−$42.52B	−$42.52B
Tax Benefit	$7.78B	−$34.74B
Net Loss	−$34.92B	−$34.92B

Revenue$500.28M
Cost of Revenue−$161.59M
Gross Profit$338.69M
Operating Expenses−$13.92B
Operating Income−$13.58B
Other Income / Expense−$28.94B
Pre-tax Income−$42.52B
Tax Benefit$7.78B
Net Loss−$34.92B

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Income statement waterfall for Strategy (MSTR) — TTM through Q1 2026

Margin breakdown for Strategy (MSTR) — TTM through Q1 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of Strategy (MSTR) revenue becomes net income?

+What are Strategy (MSTR) gross, operating, and net margins?

+Why does Strategy (MSTR) have such a high (or low) gross margin?

+What is the difference between gross, operating, and net margin?

Data & methodology

+What is this view?

+How to read this waterfall

+How is the data calculated?

+What is the USD toggle?

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