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 RPM International (RPM) revenue becomes net income?

For TTM through Q2 2026, RPM International turned $7.86B of revenue into $661M of net income — a net margin of 8.4%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are RPM International (RPM) gross, operating, and net margins?

For TTM through Q2 2026, RPM International reported a gross margin of 41.4%, an operating margin of 12.3%, and a net margin of 8.4%. Each subtotal in the waterfall corresponds to one of these margins.

Why does RPM International (RPM) 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.

RPM International (RPM) Income Statement Waterfall

Revenue

$7.86B

Gross Margin

+41.4%

Operating Margin

+12.3%

Net Margin

+8.4%

Income statement waterfall for RPM International (RPM) — TTM through Q2 2026

Net income: $661M

Margin breakdown for RPM International (RPM) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$7.86B	$7.86B
Cost of Revenue	-$4.61B	$3.26B
Gross Profit	$3.26B	$3.26B
Operating Expenses	-$2.29B	$966M
Operating Income	$966M	$966M
Other Income / Expense	-$95.8M	$870M
Pre-tax Income	$870M	$870M
Income Tax	-$209M	$661M
Net Income	$661M	$661M

Revenue$7.86B
Cost of Revenue-$4.61B
Gross Profit$3.26B
Operating Expenses-$2.29B
Operating Income$966M
Other Income / Expense-$95.8M
Pre-tax Income$870M
Income Tax-$209M
Net Income$661M

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

RPM International (RPM) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

RPM Overview

Counters

Income Statement

Cash Flow

Capital Return

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation