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 Q1 2026, RPM International turned $7.71B of revenue into $665.93M of net income — a net margin of 8.6%. 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 Q1 2026, RPM International reported a gross margin of 41.4%, an operating margin of 12%, and a net margin of 8.6%. 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

$7.71B

Gross Margin

+41.4%

Operating Margin

+12.0%

Net Margin

+8.6%

Income statement waterfall for RPM International (RPM) — TTM through Q1 2026

Net income: $665.93M

Margin breakdown for RPM International (RPM) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$7.71B	$7.71B
Cost of Revenue	−$4.52B	$3.19B
Gross Profit	$3.19B	$3.19B
Operating Expenses	−$2.26B	$925.08M
Operating Income	$925.08M	$925.08M
Other Income / Expense	−$98.36M	$826.73M
Pre-tax Income	$826.73M	$826.73M
Income Tax	−$159.79M	$666.94M
Net Income	$665.93M	$665.93M

Revenue$7.71B
Cost of Revenue−$4.52B
Gross Profit$3.19B
Operating Expenses−$2.26B
Operating Income$925.08M
Other Income / Expense−$98.36M
Pre-tax Income$826.73M
Income Tax−$159.79M
Net Income$665.93M

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RPM International (RPM) Key Financials

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Income statement waterfall for RPM International (RPM) — TTM through Q1 2026

Margin breakdown for RPM International (RPM) — TTM through Q1 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of RPM International (RPM) revenue becomes net income?

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

+Why does RPM International (RPM) have such a high (or low) gross margin?

+What is the difference between gross, operating, and net margin?

Data & methodology

+What is this view?

+How to read this waterfall

+How is the data calculated?

+What is the USD toggle?

RPM International (RPM) Key Financials

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