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 Teladoc Health (TDOC) revenue becomes net income?

For TTM through Q1 2026, Teladoc Health turned $2.51B of revenue into -$171M of net income — a net margin of -6.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Teladoc Health (TDOC) gross, operating, and net margins?

For TTM through Q1 2026, Teladoc Health reported a gross margin of 65.6%, an operating margin of -7.6%, and a net margin of -6.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Teladoc Health (TDOC) 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.

Teladoc Health (TDOC) Income Statement Waterfall

Revenue

$2.51B

Gross Margin

+65.6%

Operating Margin

-7.6%

Net Margin

-6.8%

Income statement waterfall for Teladoc Health (TDOC) — TTM through Q1 2026

Net income: -$171M

Margin breakdown for Teladoc Health (TDOC) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$2.51B	$2.51B
Cost of Revenue	-$865M	$1.65B
Gross Profit	$1.65B	$1.65B
Operating Expenses	-$1.84B	-$191M
Operating Income	-$191M	-$191M
Other Income / Expense	$5.97M	-$185M
Pre-tax Income	-$185M	-$185M
Tax Benefit	$14M	-$171M
Net Loss	-$171M	-$171M

Revenue$2.51B
Cost of Revenue-$865M
Gross Profit$1.65B
Operating Expenses-$1.84B
Operating Income-$191M
Other Income / Expense$5.97M
Pre-tax Income-$185M
Tax Benefit$14M
Net Loss-$171M

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