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 First Financial (THFF) revenue becomes net income?

For TTM through Q1 2026, First Financial turned $321M of revenue into $80.6M of net income — a net margin of 25.1%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are First Financial (THFF) gross, operating, and net margins?

For TTM through Q1 2026, First Financial reported a gross margin of 77.9%, an operating margin of 27.8%, and a net margin of 25.1%. Each subtotal in the waterfall corresponds to one of these margins.

Why does First Financial (THFF) 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.

First Financial (THFF) Income Statement Waterfall

Revenue

$321M

Gross Margin

+77.9%

Operating Margin

+27.8%

Net Margin

+25.1%

Income statement waterfall for First Financial (THFF) — TTM through Q1 2026

Net income: $80.6M

Margin breakdown for First Financial (THFF) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$321M	$321M
Cost of Revenue	-$70.9M	$250M
Gross Profit	$250M	$250M
Operating Expenses	-$161M	$89.1M
Operating Income	$89.1M	$89.1M
Other Income / Expense	$11.2M	$100M
Pre-tax Income	$100M	$100M
Income Tax	-$19.7M	$80.6M
Net Income	$80.6M	$80.6M

Revenue$321M
Cost of Revenue-$70.9M
Gross Profit$250M
Operating Expenses-$161M
Operating Income$89.1M
Other Income / Expense$11.2M
Pre-tax Income$100M
Income Tax-$19.7M
Net Income$80.6M

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