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 News (NWSA) revenue becomes net income?

For TTM through Q1 2026, News turned $9.03B of revenue into $1.07B of net income — a net margin of 11.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are News (NWSA) gross, operating, and net margins?

For TTM through Q1 2026, News reported a gross margin of 73.9%, an operating margin of 12.4%, and a net margin of 11.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does News (NWSA) 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.

News (NWSA) Income Statement Waterfall

Revenue

$9.03B

Gross Margin

+73.9%

Operating Margin

+12.4%

Net Margin

+11.8%

Income statement waterfall for News (NWSA) — TTM through Q1 2026

Net income: $1.07B

Margin breakdown for News (NWSA) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$9.03B	$9.03B
Cost of Revenue	-$2.36B	$6.67B
Gross Profit	$6.67B	$6.67B
Operating Expenses	-$5.56B	$1.12B
Operating Income	$1.12B	$1.12B
Other Income / Expense	-$351M	$765M
Pre-tax Income	$765M	$765M
Income Tax	-$252M	$513M
Other Items	$552M	$1.07B
Net Income	$1.07B	$1.07B

Revenue$9.03B
Cost of Revenue-$2.36B
Gross Profit$6.67B
Operating Expenses-$5.56B
Operating Income$1.12B
Other Income / Expense-$351M
Pre-tax Income$765M
Income Tax-$252M
Other Items$552M
Net Income$1.07B

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