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 Trade Desk (TTD) revenue becomes net income?

For TTM through Q1 2026, Trade Desk turned $2.97B of revenue into $433M of net income — a net margin of 14.6%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Trade Desk (TTD) gross, operating, and net margins?

For TTM through Q1 2026, Trade Desk reported a gross margin of 77.8%, an operating margin of 20.3%, and a net margin of 14.6%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Trade Desk (TTD) 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.

Trade Desk (TTD) Income Statement Waterfall

Revenue

$2.97B

Gross Margin

+77.8%

Operating Margin

+20.3%

Net Margin

+14.6%

Income statement waterfall for Trade Desk (TTD) — TTM through Q1 2026

Net income: $433M

Margin breakdown for Trade Desk (TTD) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$2.97B	$2.97B
Cost of Revenue	-$658M	$2.31B
Gross Profit	$2.31B	$2.31B
Operating Expenses	-$1.71B	$602M
Operating Income	$602M	$602M
Other Income / Expense	$60.4M	$662M
Pre-tax Income	$662M	$662M
Income Tax	-$229M	$433M
Net Income	$433M	$433M

Revenue$2.97B
Cost of Revenue-$658M
Gross Profit$2.31B
Operating Expenses-$1.71B
Operating Income$602M
Other Income / Expense$60.4M
Pre-tax Income$662M
Income Tax-$229M
Net Income$433M

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