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 Match Group (MTCH) revenue becomes net income?

For TTM through Q1 2026, Match Group turned $3.52B of revenue into $663M of net income — a net margin of 18.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Match Group (MTCH) gross, operating, and net margins?

For TTM through Q1 2026, Match Group reported a gross margin of 73.8%, an operating margin of 26.6%, and a net margin of 18.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Match Group (MTCH) 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.

Match Group (MTCH) Income Statement Waterfall

Revenue

$3.52B

Gross Margin

+73.8%

Operating Margin

+26.6%

Net Margin

+18.8%

Income statement waterfall for Match Group (MTCH) — TTM through Q1 2026

Net income: $663M

Margin breakdown for Match Group (MTCH) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$3.52B	$3.52B
Cost of Revenue	-$922M	$2.6B
Gross Profit	$2.6B	$2.6B
Operating Expenses	-$1.66B	$936M
Operating Income	$936M	$936M
Other Income / Expense	-$130M	$807M
Pre-tax Income	$807M	$807M
Income Tax	-$144M	$663M
Net Income	$663M	$663M

Revenue$3.52B
Cost of Revenue-$922M
Gross Profit$2.6B
Operating Expenses-$1.66B
Operating Income$936M
Other Income / Expense-$130M
Pre-tax Income$807M
Income Tax-$144M
Net Income$663M

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