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 NIO (NIO) revenue becomes net income?

For TTM through Q1 2026, NIO turned 101B CNY of revenue into -9.02B CNY of net income — a net margin of -9%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are NIO (NIO) gross, operating, and net margins?

For TTM through Q1 2026, NIO reported a gross margin of 15.7%, an operating margin of -8.2%, and a net margin of -9%. Each subtotal in the waterfall corresponds to one of these margins.

Why does NIO (NIO) 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.

NIO (NIO) Income Statement Waterfall

Revenue

101B CNY

Gross Margin

+15.7%

Operating Margin

-8.2%

Net Margin

-9.0%

Income statement waterfall for NIO (NIO) — TTM through Q1 2026

Net income: -9.02B CNY

Margin breakdown for NIO (NIO) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	101B CNY	101B CNY
Cost of Revenue	-84.7B CNY	15.8B CNY
Gross Profit	15.8B CNY	15.8B CNY
Operating Expenses	-24B CNY	-8.24B CNY
Operating Income	-8.24B CNY	-8.24B CNY
Other Income / Expense	-164M CNY	-8.4B CNY
Pre-tax Income	-8.4B CNY	-8.4B CNY
Income Tax	-129M CNY	-8.53B CNY
Other Items	-489M CNY	-9.02B CNY
Net Loss	-9.02B CNY	-9.02B CNY

Revenue101B CNY
Cost of Revenue-84.7B CNY
Gross Profit15.8B CNY
Operating Expenses-24B CNY
Operating Income-8.24B CNY
Other Income / Expense-164M CNY
Pre-tax Income-8.4B CNY
Income Tax-129M CNY
Other Items-489M CNY
Net Loss-9.02B CNY

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