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 IDEXX Laboratories (IDXX) revenue becomes net income?

For TTM through Q1 2026, IDEXX Laboratories turned $4.45B of revenue into $1.1B of net income — a net margin of 24.6%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are IDEXX Laboratories (IDXX) gross, operating, and net margins?

For TTM through Q1 2026, IDEXX Laboratories reported a gross margin of 62.1%, an operating margin of 31.6%, and a net margin of 24.6%. Each subtotal in the waterfall corresponds to one of these margins.

Why does IDEXX Laboratories (IDXX) 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.

IDEXX Laboratories (IDXX) Income Statement Waterfall

Revenue

$4.45B

Gross Margin

+62.1%

Operating Margin

+31.6%

Net Margin

+24.6%

Income statement waterfall for IDEXX Laboratories (IDXX) — TTM through Q1 2026

Net income: $1.1B

Margin breakdown for IDEXX Laboratories (IDXX) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$4.45B	$4.45B
Cost of Revenue	-$1.69B	$2.76B
Gross Profit	$2.76B	$2.76B
Operating Expenses	-$1.35B	$1.41B
Operating Income	$1.41B	$1.41B
Other Income / Expense	-$36.5M	$1.37B
Pre-tax Income	$1.37B	$1.37B
Income Tax	-$274M	$1.1B
Net Income	$1.1B	$1.1B

Revenue$4.45B
Cost of Revenue-$1.69B
Gross Profit$2.76B
Operating Expenses-$1.35B
Operating Income$1.41B
Other Income / Expense-$36.5M
Pre-tax Income$1.37B
Income Tax-$274M
Net Income$1.1B

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