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 National Fuel Gas (NFG) revenue becomes net income?

For TTM through Q1 2026, National Fuel Gas turned $2.5B of revenue into $686M of net income — a net margin of 27.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are National Fuel Gas (NFG) gross, operating, and net margins?

For TTM through Q1 2026, National Fuel Gas reported a gross margin of 50%, an operating margin of 41.4%, and a net margin of 27.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does National Fuel Gas (NFG) 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.

National Fuel Gas (NFG) Income Statement Waterfall

Revenue

$2.5B

Gross Margin

+50.0%

Operating Margin

+41.4%

Net Margin

+27.5%

Income statement waterfall for National Fuel Gas (NFG) — TTM through Q1 2026

Net income: $686M

Margin breakdown for National Fuel Gas (NFG) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$2.5B	$2.5B
Cost of Revenue	-$1.25B	$1.25B
Gross Profit	$1.25B	$1.25B
Operating Expenses	-$217M	$1.03B
Operating Income	$1.03B	$1.03B
Other Income / Expense	-$112M	$922M
Pre-tax Income	$922M	$922M
Income Tax	-$235M	$686M
Net Income	$686M	$686M

Revenue$2.5B
Cost of Revenue-$1.25B
Gross Profit$1.25B
Operating Expenses-$217M
Operating Income$1.03B
Other Income / Expense-$112M
Pre-tax Income$922M
Income Tax-$235M
Net Income$686M

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