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 Opendoor Technologies (OPEN) revenue becomes net income?

For TTM through Q1 2026, Opendoor Technologies turned $3.94B of revenue into -$1.39B of net income — a net margin of -35.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Opendoor Technologies (OPEN) gross, operating, and net margins?

For TTM through Q1 2026, Opendoor Technologies reported a gross margin of 7.9%, an operating margin of -9.9%, and a net margin of -35.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Opendoor Technologies (OPEN) 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.

Opendoor Technologies (OPEN) Income Statement Waterfall

Revenue

$3.94B

Gross Margin

+7.9%

Operating Margin

-9.9%

Net Margin

-35.2%

Income statement waterfall for Opendoor Technologies (OPEN) — TTM through Q1 2026

Net income: -$1.39B

Margin breakdown for Opendoor Technologies (OPEN) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$3.94B	$3.94B
Cost of Revenue	-$3.63B	$312M
Gross Profit	$312M	$312M
Operating Expenses	-$703M	-$391M
Operating Income	-$391M	-$391M
Other Income / Expense	-$997M	-$1.39B
Pre-tax Income	-$1.39B	-$1.39B
Income Tax	$0.00	-$1.39B
Net Loss	-$1.39B	-$1.39B

Revenue$3.94B
Cost of Revenue-$3.63B
Gross Profit$312M
Operating Expenses-$703M
Operating Income-$391M
Other Income / Expense-$997M
Pre-tax Income-$1.39B
Income Tax$0.00
Net Loss-$1.39B

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Operating Margin-9.9%

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Operations

Employees1.0K

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