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 Nebius Group (NBIS) revenue becomes net income?

For TTM through Q1 2026, Nebius Group turned $878M of revenue into $836M of net income — a net margin of 95.3%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Nebius Group (NBIS) gross, operating, and net margins?

For TTM through Q1 2026, Nebius Group reported a gross margin of 47.9%, an operating margin of -68.8%, and a net margin of 95.3%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Nebius Group (NBIS) 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.

Nebius Group (NBIS) Income Statement Waterfall

Revenue

$878M

Gross Margin

+47.9%

Operating Margin

-68.8%

Net Margin

+95.3%

Income statement waterfall for Nebius Group (NBIS) — TTM through Q1 2026

Net income: $836M

Margin breakdown for Nebius Group (NBIS) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$878M	$878M
Cost of Revenue	-$457M	$421M
Gross Profit	$421M	$421M
Operating Expenses	-$1.02B	-$604M
Operating Income	-$604M	-$604M
Other Income / Expense	$1.36B	$752M
Pre-tax Income	$752M	$752M
Tax Benefit	$2.7M	$755M
Other Items	$81.9M	$836M
Net Income	$836M	$836M

Revenue$878M
Cost of Revenue-$457M
Gross Profit$421M
Operating Expenses-$1.02B
Operating Income-$604M
Other Income / Expense$1.36B
Pre-tax Income$752M
Tax Benefit$2.7M
Other Items$81.9M
Net Income$836M

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