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 Solstice Advanced Materials (SOLS) revenue becomes net income?

For TTM through Q1 2026, Solstice Advanced Materials turned $3.98B of revenue into $107M of net income — a net margin of 2.7%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Solstice Advanced Materials (SOLS) gross, operating, and net margins?

For TTM through Q1 2026, Solstice Advanced Materials reported a gross margin of 31.2%, an operating margin of 17.2%, and a net margin of 2.7%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Solstice Advanced Materials (SOLS) 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.

Solstice Advanced Materials (SOLS) Income Statement Waterfall

Revenue

$3.98B

Gross Margin

+31.2%

Operating Margin

+17.2%

Net Margin

+2.7%

Income statement waterfall for Solstice Advanced Materials (SOLS) — TTM through Q1 2026

Net income: $107M

Margin breakdown for Solstice Advanced Materials (SOLS) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$3.98B	$3.98B
Cost of Revenue	-$2.74B	$1.24B
Gross Profit	$1.24B	$1.24B
Operating Expenses	-$556M	$685M
Operating Income	$685M	$685M
Other Income / Expense	-$176M	$509M
Pre-tax Income	$509M	$509M
Income Tax	-$342M	$167M
Other Items	-$60M	$107M
Net Income	$107M	$107M

Revenue$3.98B
Cost of Revenue-$2.74B
Gross Profit$1.24B
Operating Expenses-$556M
Operating Income$685M
Other Income / Expense-$176M
Pre-tax Income$509M
Income Tax-$342M
Other Items-$60M
Net Income$107M

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