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 UDR (UDR) revenue becomes net income?

For TTM through Q1 2026, UDR turned $1.72B of revenue into $491M of net income — a net margin of 28.6%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are UDR (UDR) gross, operating, and net margins?

For TTM through Q1 2026, UDR reported a gross margin of 46%, an operating margin of 27.4%, and a net margin of 28.6%. Each subtotal in the waterfall corresponds to one of these margins.

Why does UDR (UDR) 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.

UDR (UDR) Income Statement Waterfall

Revenue

$1.72B

Gross Margin

+46.0%

Operating Margin

+27.4%

Net Margin

+28.6%

Income statement waterfall for UDR (UDR) — TTM through Q1 2026

Net income: $491M

Margin breakdown for UDR (UDR) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$1.72B	$1.72B
Cost of Revenue	-$927M	$789M
Gross Profit	$789M	$789M
Operating Expenses	-$320M	$469M
Operating Income	$469M	$469M
Other Income / Expense	$56.2M	$526M
Pre-tax Income	$526M	$526M
Income Tax	-$1.13M	$525M
Other Items	-$33.7M	$491M
Net Income	$491M	$491M

Revenue$1.72B
Cost of Revenue-$927M
Gross Profit$789M
Operating Expenses-$320M
Operating Income$469M
Other Income / Expense$56.2M
Pre-tax Income$526M
Income Tax-$1.13M
Other Items-$33.7M
Net Income$491M

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Operating Margin27.4%

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