Practical examples of income statement format (with real-world styles)

Real examples of income statement format you can copy

Instead of starting with theory, let’s go straight into practical layouts. These examples of income statement format are simplified but realistic, and they mirror what you’ll see in filings and internal reports.

Example of a classic multi‑step income statement (retail)

The multi‑step format is the workhorse for most U.S. GAAP‑compliant companies. It separates gross profit, operating income, and net income, which makes performance analysis easier.

ABC Retail, Inc. — Income Statement (Year Ended December 31, 2024)
(USD in thousands)

Net Sales Revenue
Sales revenue ............................................. $4,800
Sales returns and allowances ............................. (200)

Net sales ............................................. 4,600

Cost of Goods Sold
Beginning inventory ....................................... 700
Purchases ................................................. 3,100
Freight‑in ................................................ 100
Goods available for sale ................................. 3,900
Ending inventory .......................................... (900)

Cost of goods sold .................................... 3,000

Gross profit .......................................... 1,600

Operating Expenses
Selling expenses .......................................... 500
General and administrative ............................... 400
Store rent and utilities ................................. 250
Depreciation — store fixtures ............................ 100

Total operating expenses .............................. 1,250

Operating income ...................................... 350

Other Income (Expense)
Interest income ........................................... 10
Interest expense .......................................... (40)
Gain on sale of equipment ................................. 15

Total other income (expense) ......................... (15)

Income before income taxes ............................ 335
Income tax expense ........................................ (70)

Net income ............................................ $265

This is one of the best examples of income statement format for a brick‑and‑mortar or e‑commerce retailer: clear gross profit, clear operating income, and a clean separation of core operations from financing and one‑off gains.

SaaS startup example of income statement format (recurring revenue focus)

Software‑as‑a‑Service companies like to highlight recurring revenue and subscription economics. The underlying GAAP rules still apply, but the storytelling shifts.

CloudFlow, Inc. — Condensed Income Statement (Year Ended December 31, 2024)
(USD in thousands)

Revenue
Subscription revenue (recurring) .......................... $7,200
Professional services (non‑recurring) ..................... 1,000

Total revenue .......................................... 8,200

Cost of Revenue
Hosting and infrastructure ................................ 1,100
Customer support .......................................... 650
Implementation services ................................... 450

Total cost of revenue ................................. 2,200

Gross profit .......................................... 6,000
Gross margin .............................................. 73%

Operating Expenses
Sales and marketing ....................................... 3,000
Research and development ................................. 1,800
General and administrative ............................... 900
Stock‑based compensation (included above) ................ 350

Total operating expenses .............................. 5,700

Operating income (loss) ............................... 300

Other Income (Expense)
Interest expense — term loan .............................. (80)
Interest income — money market funds ...................... 20
Fair value adjustment — warrant liability ................. (40)

Total other income (expense) .......................... (100)

Income before income taxes ............................ 200
Income tax expense (benefit) .............................. (10)

Net income ............................................ $210

This example of income statement format shows how a SaaS startup in 2024–2025 might present recurring vs. non‑recurring revenue, while still maintaining the multi‑step structure investors expect.

Single‑step income statement example for a small service firm

The single‑step format is simpler: all revenues at the top, all expenses grouped below, then net income. It’s common for small private companies and professional service firms.

BrightPath Consulting LLC — Income Statement (Year Ended June 30, 2024)
(USD in thousands)

Revenues
Consulting fees ........................................... $1,050
Training workshops ........................................ 220
Other income (royalties, minor) ........................... 30

Total revenues ........................................ 1,300

Expenses
Salaries and wages ........................................ 520
Contractors and freelancers ............................... 210
Office rent and utilities ................................. 90
Travel and client entertainment ........................... 80
Marketing and advertising ................................. 70
Insurance ................................................. 30
Professional fees (legal, accounting) ..................... 40
Depreciation and amortization ............................. 20
Interest expense .......................................... 10
Income tax expense ........................................ 70

Total expenses ........................................ 1,140

Net income ............................................ $160

For many small businesses, this is one of the best examples of income statement format: minimal line items, no subtotals for gross profit or operating income, but still perfectly acceptable under U.S. GAAP.

Manufacturing company example of income statement format (detailed COGS)

Manufacturers often expand the cost of goods sold section to show direct materials, direct labor, and overhead.

Precision Manufacturing Corp. — Income Statement (Year Ended December 31, 2024)
(USD in thousands)

Net Sales ............................................. $18,500

Cost of Goods Sold
Direct materials used ..................................... 6,200
Direct labor .............................................. 3,100
Manufacturing overhead (indirect labor, utilities, etc.) .. 2,400
Change in finished goods inventory ........................ (300)

Total cost of goods sold .............................. 11,400

Gross profit .......................................... 7,100

Operating Expenses
Selling expenses .......................................... 1,900
General and administrative ............................... 1,300
Research and development ................................. 600

Total operating expenses .............................. 3,800

Operating income ...................................... 3,300

Non‑operating Items
Interest expense .......................................... (450)
Foreign exchange gain (loss) .............................. (60)
Gain on disposal of subsidiary ............................ 220

Total non‑operating items ............................. (290)

Income before income taxes ............................ 3,010
Income tax expense ........................................ (750)

Net income ............................................ $2,260

This manufacturing layout is a strong example of income statement format when you want to analyze production efficiency and overhead absorption.

Segment‑based example of income statement format for a diversified company

Larger companies often break out performance by segment in the notes or in a separate schedule, especially under IFRS 8 and ASC 280.

GlobalTech Group — Segment Information (Excerpt, Year Ended December 31, 2024)
(USD in millions)

Revenue by Segment
Consumer Electronics ...................................... $9,800
Enterprise Solutions ...................................... 4,200
Digital Services .......................................... 2,000

Total consolidated revenue ............................ 16,000

Operating Income by Segment
Consumer Electronics ...................................... 1,050
Enterprise Solutions ...................................... 620
Digital Services .......................................... 480
Corporate and unallocated ................................ (300)

Consolidated operating income ........................ 1,850

The consolidated income statement would still follow a multi‑step format, but this segment table is a real‑world example of income statement format used inside the footnotes to show where profits actually come from.

Nonprofit example of income statement format (statement of activities)

Nonprofits don’t technically use an “income statement,” but the statement of activities plays a similar role, separating activities with and without donor restrictions. This is still helpful if you’re looking for examples of income statement format outside the corporate world.

Helping Hands Foundation — Statement of Activities (Year Ended December 31, 2024)
(USD in thousands)

Support and Revenue
Contributions and grants ................................. $3,200
Program service revenue ................................... 900
Investment income ......................................... 80
Net assets released from restrictions ..................... 400

Total support and revenue ............................. 4,580

Expenses
Program services .......................................... 3,100
Management and general .................................... 450
Fundraising ............................................... 280

Total expenses ........................................ 3,830

Change in net assets ................................. 750
Net assets, beginning of year ............................. 4,200

Net assets, end of year .............................. $4,950

If you’re comparing examples of examples of income statement format across sectors, this nonprofit version shows how the same idea—revenue minus expenses—gets adapted to a different reporting language.

How these examples connect to GAAP, IFRS, and 2024–2025 trends

All of these examples of income statement format sit under the same basic rules:

• U.S. GAAP (FASB) requires certain line items (like income tax expense) and encourages clear separation of operating vs. non‑operating items. You can browse the codification overview on the Financial Accounting Standards Board site: https://www.fasb.org.
• IFRS (IASB) focuses more on principles than strict formats, but IAS 1 lays out minimum line items and subtotals. An accessible summary is available from the IFRS Foundation: https://www.ifrs.org.

In 2024–2025, a few trends are shaping how the best examples of income statement format look in practice:

• More detail on non‑GAAP metrics: Public companies are under pressure from the SEC to reconcile non‑GAAP measures (like “adjusted EBITDA”) back to the GAAP income statement. That’s driving more transparent line‑item breakdowns.
• Greater visibility into financing costs: With higher interest rates since 2022, many companies now highlight interest expense separately to show how debt is hitting net income.
• Segment and geographic disclosure: Investors want to know which business lines actually make money. That’s why you see more segment tables like the GlobalTech example of income statement format.
• Stock‑based compensation and fair‑value adjustments: Especially in tech, these items are more visible in 2024–2025, often called out in footnotes or parenthetical disclosures within operating expenses.

For education and training on reading these formats, many U.S. universities publish open course materials. One accessible resource is MIT OpenCourseWare’s accounting materials: https://ocw.mit.edu.

Choosing the right income statement format for your business

When you compare all these examples of income statement format, a pattern emerges:

• If you’re a small, cash‑focused service business, the single‑step format (like BrightPath Consulting) keeps reporting simple and easy to prepare.
• If you’re seeking bank financing or investors, a multi‑step example of income statement format that clearly shows gross profit and operating income will usually land better with lenders and VCs.
• If you’re in manufacturing or retail, breaking out cost of goods sold, like Precision Manufacturing and ABC Retail, makes margin analysis far more useful.
• If you’re a SaaS or subscription model, highlight recurring revenue and cost of revenue, but keep the overall structure aligned with GAAP.
• If you’re a nonprofit, your auditors will expect a statement of activities format, but you can still borrow the logic from corporate income statement examples.

The right choice isn’t about creativity; it’s about clarity and comparability. The best examples of income statement format help outsiders answer three questions quickly:

• How does this business make money?
• What does it cost to run the core operations?
• What’s left after financing costs and taxes?

If your draft income statement doesn’t make those answers obvious, borrow from the examples of examples of income statement format above and tighten your layout.

FAQs about income statement formats and examples

Q1. What are some common examples of income statement format used in practice?
Common examples include the multi‑step format (with gross profit and operating income subtotals), the single‑step format (all revenues minus all expenses), and specialized layouts for manufacturing, SaaS, and nonprofits. The examples in this guide mirror what you’ll see in real company reports and textbooks.

Q2. Can I mix elements from different examples of income statement format?
Yes, as long as you stay within GAAP or IFRS rules and disclose items clearly. Many companies use a multi‑step structure but borrow SaaS‑style revenue breakdowns or manufacturing‑style COGS detail. The key is consistency over time so trend analysis remains meaningful.

Q3. Is there a best example of income statement format for startups?
For most early‑stage startups, a multi‑step income statement that separates cost of revenue, operating expenses, and net income works best. The CloudFlow SaaS example of income statement format in this article is a good starting point. You can simplify line items, but keep the structure recognizable to investors.

Q4. Where can I see real examples of public company income statements?
In the U.S., public companies file their financial statements with the Securities and Exchange Commission. You can search real income statement examples in 10‑K and 10‑Q filings through the SEC’s EDGAR system: https://www.sec.gov/edgar/search. That’s the fastest way to see how large companies implement the formats shown here.

Q5. Are international examples of income statement format very different from U.S. ones?
Not dramatically. IFRS and U.S. GAAP use slightly different terminology and have different disclosure emphases, but the structure—revenue, expenses, profit—is the same. The biggest differences usually show up in line‑item naming and classification of certain gains and losses, not in the overall layout.

Use these examples of examples of income statement format as templates, then adapt the labels and level of detail to your jurisdiction and your audience.