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 Old Dominion Freight Line (ODFL) revenue becomes net income?

For TTM through Q1 2026, Old Dominion Freight Line turned $5.46B of revenue into $1.01B of net income — a net margin of 18.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Old Dominion Freight Line (ODFL) gross, operating, and net margins?

For TTM through Q1 2026, Old Dominion Freight Line reported a gross margin of 30.9%, an operating margin of 24.6%, and a net margin of 18.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Old Dominion Freight Line (ODFL) 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.

Old Dominion Freight Line (ODFL) Income Statement Waterfall

Revenue

$5.46B

Gross Margin

+30.9%

Operating Margin

+24.6%

Net Margin

+18.5%

Income statement waterfall for Old Dominion Freight Line (ODFL) — TTM through Q1 2026

Net income: $1.01B

Margin breakdown for Old Dominion Freight Line (ODFL) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$5.46B	$5.46B
Cost of Revenue	-$3.77B	$1.69B
Gross Profit	$1.69B	$1.69B
Operating Expenses	-$346M	$1.34B
Operating Income	$1.34B	$1.34B
Other Income / Expense	$11K	$1.34B
Pre-tax Income	$1.34B	$1.34B
Income Tax	-$333M	$1.01B
Net Income	$1.01B	$1.01B

Revenue$5.46B
Cost of Revenue-$3.77B
Gross Profit$1.69B
Operating Expenses-$346M
Operating Income$1.34B
Other Income / Expense$11K
Pre-tax Income$1.34B
Income Tax-$333M
Net Income$1.01B

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