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 Ovid Therapeutics (OVID) revenue becomes net income?

For TTM through Q1 2026, Ovid Therapeutics turned $7.12M of revenue into -$24.2M of net income — a net margin of -339.3%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Ovid Therapeutics (OVID) gross, operating, and net margins?

For TTM through Q1 2026, Ovid Therapeutics reported a gross margin of 99.5%, an operating margin of -670.2%, and a net margin of -339.3%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Ovid Therapeutics (OVID) 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.

Ovid Therapeutics (OVID) Income Statement Waterfall

Revenue

$7.12M

Gross Margin

+99.5%

Operating Margin

-670.2%

Net Margin

-339.3%

Income statement waterfall for Ovid Therapeutics (OVID) — TTM through Q1 2026

Net income: -$24.2M

Margin breakdown for Ovid Therapeutics (OVID) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$7.12M	$7.12M
Cost of Revenue	-$35K	$7.09M
Gross Profit	$7.09M	$7.09M
Operating Expenses	-$54.8M	-$47.7M
Operating Income	-$47.7M	-$47.7M
Other Income / Expense	$23.6M	-$24.2M
Pre-tax Income	-$24.2M	-$24.2M
Income Tax	$0.00	-$24.2M
Net Loss	-$24.2M	-$24.2M

Revenue$7.12M
Cost of Revenue-$35K
Gross Profit$7.09M
Operating Expenses-$54.8M
Operating Income-$47.7M
Other Income / Expense$23.6M
Pre-tax Income-$24.2M
Income Tax$0.00
Net Loss-$24.2M

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