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 1st Source (SRCE) revenue becomes net income?

For TTM through Q1 2026, 1st Source turned $602.72M of revenue into $160.71M of net income — a net margin of 26.7%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are 1st Source (SRCE) gross, operating, and net margins?

For TTM through Q1 2026, 1st Source reported a gross margin of 70.8%, an operating margin of 34.6%, and a net margin of 26.7%. Each subtotal in the waterfall corresponds to one of these margins.

Why does 1st Source (SRCE) 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.

1st Source (SRCE) Income Statement Waterfall

Revenue

$602.72M

Gross Margin

+70.8%

Operating Margin

+34.6%

Net Margin

+26.7%

Income statement waterfall for 1st Source (SRCE) — TTM through Q1 2026

Net income: $160.71M

Margin breakdown for 1st Source (SRCE) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$602.72M	$602.72M
Cost of Revenue	−$175.71M	$427.02M
Gross Profit	$427.02M	$427.02M
Operating Expenses	−$218.28M	$208.74M
Operating Income	$208.74M	$208.74M
Other Income / Expense	−$711.00K	$208.03M
Pre-tax Income	$208.03M	$208.03M
Income Tax	−$47.33M	$160.70M
Net Income	$160.71M	$160.71M

Revenue$602.72M
Cost of Revenue−$175.71M
Gross Profit$427.02M
Operating Expenses−$218.28M
Operating Income$208.74M
Other Income / Expense−$711.00K
Pre-tax Income$208.03M
Income Tax−$47.33M
Net Income$160.71M

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1st Source (SRCE) Key Financials

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Income statement waterfall for 1st Source (SRCE) — TTM through Q1 2026

Margin breakdown for 1st Source (SRCE) — TTM through Q1 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of 1st Source (SRCE) revenue becomes net income?

+What are 1st Source (SRCE) gross, operating, and net margins?

+Why does 1st Source (SRCE) 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?

1st Source (SRCE) Key Financials

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