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 Upwork (UPWK) revenue becomes net income?

For TTM through Q1 2026, Upwork turned $790.56M of revenue into $109.16M of net income — a net margin of 13.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Upwork (UPWK) gross, operating, and net margins?

For TTM through Q1 2026, Upwork reported a gross margin of 77.5%, an operating margin of 15.6%, and a net margin of 13.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Upwork (UPWK) 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.

Upwork (UPWK) Income Statement Waterfall

Revenue

$790.56M

Gross Margin

+77.5%

Operating Margin

+15.6%

Net Margin

+13.8%

Income statement waterfall for Upwork (UPWK) — TTM through Q1 2026

Net income: $109.16M

Margin breakdown for Upwork (UPWK) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$790.56M	$790.56M
Cost of Revenue	−$177.59M	$612.97M
Gross Profit	$612.97M	$612.97M
Operating Expenses	−$489.64M	$123.33M
Operating Income	$123.33M	$123.33M
Other Income / Expense	$22.54M	$145.88M
Pre-tax Income	$145.88M	$145.88M
Income Tax	−$36.72M	$109.16M
Net Income	$109.16M	$109.16M

Revenue$790.56M
Cost of Revenue−$177.59M
Gross Profit$612.97M
Operating Expenses−$489.64M
Operating Income$123.33M
Other Income / Expense$22.54M
Pre-tax Income$145.88M
Income Tax−$36.72M
Net Income$109.16M

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Capital Return

Buybacks15.01% TTM

No dividends or stock splits on record for this company.

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Income statement waterfall for Upwork (UPWK) — TTM through Q1 2026

Margin breakdown for Upwork (UPWK) — TTM through Q1 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of Upwork (UPWK) revenue becomes net income?

+What are Upwork (UPWK) gross, operating, and net margins?

+Why does Upwork (UPWK) 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?

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