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 DexCom (DXCM) revenue becomes net income?

For TTM through Q1 2026, DexCom turned $4.82B of revenue into $930M of net income — a net margin of 19.3%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are DexCom (DXCM) gross, operating, and net margins?

For TTM through Q1 2026, DexCom reported a gross margin of 61.8%, an operating margin of 21.4%, and a net margin of 19.3%. Each subtotal in the waterfall corresponds to one of these margins.

Why does DexCom (DXCM) 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.

DexCom (DXCM) Income Statement Waterfall

Revenue

$4.82B

Gross Margin

+61.8%

Operating Margin

+21.4%

Net Margin

+19.3%

Income statement waterfall for DexCom (DXCM) — TTM through Q1 2026

Net income: $930M

Margin breakdown for DexCom (DXCM) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$4.82B	$4.82B
Cost of Revenue	-$1.84B	$2.98B
Gross Profit	$2.98B	$2.98B
Operating Expenses	-$1.95B	$1.03B
Operating Income	$1.03B	$1.03B
Other Income / Expense	$170M	$1.2B
Pre-tax Income	$1.2B	$1.2B
Income Tax	-$273M	$930M
Net Income	$930M	$930M

Revenue$4.82B
Cost of Revenue-$1.84B
Gross Profit$2.98B
Operating Expenses-$1.95B
Operating Income$1.03B
Other Income / Expense$170M
Pre-tax Income$1.2B
Income Tax-$273M
Net Income$930M

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