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 Northwest Natural Holding (NWN) revenue becomes net income?

For TTM through Q1 2026, Northwest Natural Holding turned $1.29B of revenue into $123M of net income — a net margin of 9.6%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Northwest Natural Holding (NWN) gross, operating, and net margins?

For TTM through Q1 2026, Northwest Natural Holding reported a gross margin of 42.3%, an operating margin of 31.3%, and a net margin of 9.6%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Northwest Natural Holding (NWN) 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.

Northwest Natural Holding (NWN) Income Statement Waterfall

Revenue

$1.29B

Gross Margin

+42.3%

Operating Margin

+31.3%

Net Margin

+9.6%

Income statement waterfall for Northwest Natural Holding (NWN) — TTM through Q1 2026

Net income: $123M

Margin breakdown for Northwest Natural Holding (NWN) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$1.29B	$1.29B
Cost of Revenue	-$742M	$543M
Gross Profit	$543M	$543M
Operating Expenses	-$140M	$403M
Operating Income	$403M	$403M
Other Income / Expense	-$241M	$162M
Pre-tax Income	$162M	$162M
Income Tax	-$39.4M	$123M
Net Income	$123M	$123M

Revenue$1.29B
Cost of Revenue-$742M
Gross Profit$543M
Operating Expenses-$140M
Operating Income$403M
Other Income / Expense-$241M
Pre-tax Income$162M
Income Tax-$39.4M
Net Income$123M

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