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 John Wiley & Sons (WLY) revenue becomes net income?

For TTM through Q2 2026, John Wiley & Sons turned $1.68B of revenue into $222M of net income — a net margin of 13.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are John Wiley & Sons (WLY) gross, operating, and net margins?

For TTM through Q2 2026, John Wiley & Sons reported a gross margin of 74.3%, an operating margin of 16.5%, and a net margin of 13.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does John Wiley & Sons (WLY) 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.

John Wiley & Sons (WLY) Income Statement Waterfall

Revenue

$1.68B

Gross Margin

+74.3%

Operating Margin

+16.5%

Net Margin

+13.2%

Income statement waterfall for John Wiley & Sons (WLY) — TTM through Q2 2026

Net income: $222M

Margin breakdown for John Wiley & Sons (WLY) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$1.68B	$1.68B
Cost of Revenue	-$432M	$1.25B
Gross Profit	$1.25B	$1.25B
Operating Expenses	-$968M	$277M
Operating Income	$277M	$277M
Other Income / Expense	-$61.8M	$215M
Pre-tax Income	$215M	$215M
Tax Benefit	$6.53M	$222M
Net Income	$222M	$222M

Revenue$1.68B
Cost of Revenue-$432M
Gross Profit$1.25B
Operating Expenses-$968M
Operating Income$277M
Other Income / Expense-$61.8M
Pre-tax Income$215M
Tax Benefit$6.53M
Net Income$222M

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