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 XPeng (XPEV) revenue becomes net income?

For TTM through Q1 2026, XPeng turned 73.6B CNY of revenue into -2.25B CNY of net income — a net margin of -3.1%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are XPeng (XPEV) gross, operating, and net margins?

For TTM through Q1 2026, XPeng reported a gross margin of 19.9%, an operating margin of -6.4%, and a net margin of -3.1%. Each subtotal in the waterfall corresponds to one of these margins.

Why does XPeng (XPEV) 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.

XPeng (XPEV) Income Statement Waterfall

Revenue

73.6B CNY

Gross Margin

+19.9%

Operating Margin

-6.4%

Net Margin

-3.1%

Income statement waterfall for XPeng (XPEV) — TTM through Q1 2026

Net income: -2.25B CNY

Margin breakdown for XPeng (XPEV) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	73.6B CNY	73.6B CNY
Cost of Revenue	-58.9B CNY	14.6B CNY
Gross Profit	14.6B CNY	14.6B CNY
Operating Expenses	-19.3B CNY	-4.69B CNY
Operating Income	-4.69B CNY	-4.69B CNY
Other Income / Expense	2.45B CNY	-2.24B CNY
Pre-tax Income	-2.24B CNY	-2.24B CNY
Income Tax	-14.5M CNY	-2.25B CNY
Net Loss	-2.25B CNY	-2.25B CNY

Revenue73.6B CNY
Cost of Revenue-58.9B CNY
Gross Profit14.6B CNY
Operating Expenses-19.3B CNY
Operating Income-4.69B CNY
Other Income / Expense2.45B CNY
Pre-tax Income-2.24B CNY
Income Tax-14.5M CNY
Net Loss-2.25B CNY

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