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 Roper Technologies (ROP) revenue becomes net income?

For TTM through Q1 2026, Roper Technologies turned $8.12B of revenue into $1.71B of net income — a net margin of 21.1%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Roper Technologies (ROP) gross, operating, and net margins?

For TTM through Q1 2026, Roper Technologies reported a gross margin of 69.4%, an operating margin of 28.1%, and a net margin of 21.1%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Roper Technologies (ROP) 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.

Roper Technologies (ROP) Income Statement Waterfall

Revenue

$8.12B

Gross Margin

+69.4%

Operating Margin

+28.1%

Net Margin

+21.1%

Income statement waterfall for Roper Technologies (ROP) — TTM through Q1 2026

Net income: $1.71B

Margin breakdown for Roper Technologies (ROP) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$8.12B	$8.12B
Cost of Revenue	-$2.48B	$5.63B
Gross Profit	$5.63B	$5.63B
Operating Expenses	-$3.35B	$2.28B
Operating Income	$2.28B	$2.28B
Other Income / Expense	-$126M	$2.15B
Pre-tax Income	$2.15B	$2.15B
Income Tax	-$439M	$1.71B
Net Income	$1.71B	$1.71B

Revenue$8.12B
Cost of Revenue-$2.48B
Gross Profit$5.63B
Operating Expenses-$3.35B
Operating Income$2.28B
Other Income / Expense-$126M
Pre-tax Income$2.15B
Income Tax-$439M
Net Income$1.71B

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