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 Badger Meter (BMI) revenue becomes net income?

For TTM through Q2 2026, Badger Meter turned $881M of revenue into $126M of net income — a net margin of 14.3%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Badger Meter (BMI) gross, operating, and net margins?

For TTM through Q2 2026, Badger Meter reported a gross margin of 41.3%, an operating margin of 18.6%, and a net margin of 14.3%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Badger Meter (BMI) 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.

Badger Meter (BMI) Income Statement Waterfall

Revenue

$881M

Gross Margin

+41.3%

Operating Margin

+18.6%

Net Margin

+14.3%

Income statement waterfall for Badger Meter (BMI) — TTM through Q2 2026

Net income: $126M

Margin breakdown for Badger Meter (BMI) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$881M	$881M
Cost of Revenue	-$517M	$364M
Gross Profit	$364M	$364M
Operating Expenses	-$200M	$164M
Operating Income	$164M	$164M
Other Income / Expense	$4.46M	$168M
Pre-tax Income	$168M	$168M
Income Tax	-$42.4M	$126M
Net Income	$126M	$126M

Revenue$881M
Cost of Revenue-$517M
Gross Profit$364M
Operating Expenses-$200M
Operating Income$164M
Other Income / Expense$4.46M
Pre-tax Income$168M
Income Tax-$42.4M
Net Income$126M

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