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 California Water Service Group (CWT) revenue becomes net income?

For TTM through Q1 2026, California Water Service Group turned $1.01B of revenue into $119M of net income — a net margin of 11.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are California Water Service Group (CWT) gross, operating, and net margins?

For TTM through Q1 2026, California Water Service Group reported a gross margin of 42.6%, an operating margin of 15.7%, and a net margin of 11.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does California Water Service Group (CWT) 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.

California Water Service Group (CWT) Income Statement Waterfall

Revenue

$1.01B

Gross Margin

+42.6%

Operating Margin

+15.7%

Net Margin

+11.8%

Income statement waterfall for California Water Service Group (CWT) — TTM through Q1 2026

Net income: $119M

Margin breakdown for California Water Service Group (CWT) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$1.01B	$1.01B
Cost of Revenue	-$580M	$430M
Gross Profit	$430M	$430M
Operating Expenses	-$271M	$159M
Operating Income	$159M	$159M
Other Income / Expense	-$47.6M	$111M
Pre-tax Income	$111M	$111M
Tax Benefit	$7.37M	$119M
Net Income	$119M	$119M

Revenue$1.01B
Cost of Revenue-$580M
Gross Profit$430M
Operating Expenses-$271M
Operating Income$159M
Other Income / Expense-$47.6M
Pre-tax Income$111M
Tax Benefit$7.37M
Net Income$119M

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