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 SEI Investments (SEIC) revenue becomes net income?

For TTM through Q2 2026, SEI Investments turned $2.45B of revenue into $707M of net income — a net margin of 28.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are SEI Investments (SEIC) gross, operating, and net margins?

For TTM through Q2 2026, SEI Investments reported a gross margin of 46%, an operating margin of 28.9%, and a net margin of 28.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does SEI Investments (SEIC) 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.

SEI Investments (SEIC) Income Statement Waterfall

Revenue

$2.45B

Gross Margin

+46.0%

Operating Margin

+28.9%

Net Margin

+28.8%

Income statement waterfall for SEI Investments (SEIC) — TTM through Q2 2026

Net income: $707M

Margin breakdown for SEI Investments (SEIC) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$2.45B	$2.45B
Cost of Revenue	-$680M	$1.13B
Gross Profit	$1.13B	$1.13B
Operating Expenses	-$420M	$708M
Operating Income	$708M	$708M
Other Income / Expense	$204M	$912M
Pre-tax Income	$912M	$912M
Income Tax	-$200M	$711M
Net Income	$707M	$707M

Revenue$2.45B
Cost of Revenue-$680M
Gross Profit$1.13B
Operating Expenses-$420M
Operating Income$708M
Other Income / Expense$204M
Pre-tax Income$912M
Income Tax-$200M
Net Income$707M

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