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 Farmers & Merchants Bancorp (FMCB) revenue becomes net income?

For TTM through Q1 2026, Farmers & Merchants Bancorp turned $308.67M of revenue into $94.67M of net income — a net margin of 30.7%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Farmers & Merchants Bancorp (FMCB) gross, operating, and net margins?

For TTM through Q1 2026, Farmers & Merchants Bancorp reported a gross margin of 79%, an operating margin of 41.7%, and a net margin of 30.7%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Farmers & Merchants Bancorp (FMCB) 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.

Farmers & Merchants Bancorp (FMCB) Income Statement Waterfall

Revenue

$308.67M

Gross Margin

+79.0%

Operating Margin

+41.7%

Net Margin

+30.7%

Income statement waterfall for Farmers & Merchants Bancorp (FMCB) — TTM through Q1 2026

Net income: $94.67M

Margin breakdown for Farmers & Merchants Bancorp (FMCB) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$308.67M	$308.67M
Cost of Revenue	−$64.84M	$243.83M
Gross Profit	$243.83M	$243.83M
Operating Expenses	−$115.02M	$128.81M
Operating Income	$128.81M	$128.81M
Pre-tax Income	$128.81M	$128.81M
Income Tax	−$34.14M	$94.67M
Net Income	$94.67M	$94.67M

Revenue$308.67M
Cost of Revenue−$64.84M
Gross Profit$243.83M
Operating Expenses−$115.02M
Operating Income$128.81M
Pre-tax Income$128.81M
Income Tax−$34.14M
Net Income$94.67M

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Farmers & Merchants Bancorp (FMCB) Key Financials

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Income statement waterfall for Farmers & Merchants Bancorp (FMCB) — TTM through Q1 2026

Margin breakdown for Farmers & Merchants Bancorp (FMCB) — TTM through Q1 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of Farmers & Merchants Bancorp (FMCB) revenue becomes net income?

+What are Farmers & Merchants Bancorp (FMCB) gross, operating, and net margins?

+Why does Farmers & Merchants Bancorp (FMCB) have such a high (or low) gross margin?

+What is the difference between gross, operating, and net margin?

Data & methodology

+What is this view?

+How to read this waterfall

+How is the data calculated?

+What is the USD toggle?

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