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 Realty Income (O) revenue becomes net income?

For TTM through Q1 2026, Realty Income turned $5.92B of revenue into $1.12B of net income — a net margin of 18.9%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Realty Income (O) gross, operating, and net margins?

For TTM through Q1 2026, Realty Income reported a gross margin of 68.6%, an operating margin of 29.3%, and a net margin of 18.9%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Realty Income (O) 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.

Realty Income (O) Income Statement Waterfall

Revenue

$5.92B

Gross Margin

+68.6%

Operating Margin

+29.3%

Net Margin

+18.9%

Income statement waterfall for Realty Income (O) — TTM through Q1 2026

Net income: $1.12B

Margin breakdown for Realty Income (O) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$5.92B	$5.92B
Cost of Revenue	-$1.86B	$4.06B
Gross Profit	$4.06B	$4.06B
Operating Expenses	-$2.33B	$1.73B
Operating Income	$1.73B	$1.73B
Other Income / Expense	-$573M	$1.16B
Pre-tax Income	$1.16B	$1.16B
Income Tax	-$30.5M	$1.13B
Net Income	$1.12B	$1.12B

Revenue$5.92B
Cost of Revenue-$1.86B
Gross Profit$4.06B
Operating Expenses-$2.33B
Operating Income$1.73B
Other Income / Expense-$573M
Pre-tax Income$1.16B
Income Tax-$30.5M
Net Income$1.12B

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Realty Income (O) Key Financials

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Income Statement

Balance Sheet

Profitability

Operating Margin29.3%

Cash Flow

Capital Return

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Operations

Employees544.0

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