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 Welltower (WELL) revenue becomes net income?

For TTM through Q1 2026, Welltower turned $11.6B of revenue into $1.41B of net income — a net margin of 12.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Welltower (WELL) gross, operating, and net margins?

For TTM through Q1 2026, Welltower reported a gross margin of 38.9%, an operating margin of 4.6%, and a net margin of 12.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Welltower (WELL) 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.

Welltower (WELL) Income Statement Waterfall

Revenue

$11.6B

Gross Margin

+38.9%

Operating Margin

+4.6%

Net Margin

+12.2%

Income statement waterfall for Welltower (WELL) — TTM through Q1 2026

Net income: $1.41B

Margin breakdown for Welltower (WELL) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$11.6B	$11.6B
Cost of Revenue	-$7.08B	$4.5B
Gross Profit	$4.5B	$4.5B
Operating Expenses	-$3.97B	$535M
Operating Income	$535M	$535M
Other Income / Expense	$932M	$1.47B
Pre-tax Income	$1.47B	$1.47B
Income Tax	-$10M	$1.46B
Other Items	-$49.3M	$1.41B
Net Income	$1.41B	$1.41B

Revenue$11.6B
Cost of Revenue-$7.08B
Gross Profit$4.5B
Operating Expenses-$3.97B
Operating Income$535M
Other Income / Expense$932M
Pre-tax Income$1.47B
Income Tax-$10M
Other Items-$49.3M
Net Income$1.41B

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Welltower (WELL) Key Financials

Charts, filings, and peer comparison for every metric

Income Statement

Balance Sheet

Profitability

Operating Margin4.6%

Cash Flow

Capital Return

Forecast & Valuation

Operations

Employees712.0

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

WELL Overview

Counters