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 IonQ (IONQ) revenue becomes net income?

For TTM through Q1 2026, IonQ turned $187M of revenue into $277M of net income — a net margin of 148.1%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are IonQ (IONQ) gross, operating, and net margins?

For TTM through Q1 2026, IonQ reported a gross margin of 38.1%, an operating margin of -443.3%, and a net margin of 148.1%. Each subtotal in the waterfall corresponds to one of these margins.

Why does IonQ (IONQ) 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.

IonQ (IONQ) Income Statement Waterfall

Revenue

$187M

Gross Margin

+38.1%

Operating Margin

-443.3%

Net Margin

+148.1%

Income statement waterfall for IonQ (IONQ) — TTM through Q1 2026

Net income: $277M

Margin breakdown for IonQ (IONQ) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$187M	$187M
Cost of Revenue	-$116M	$71.3M
Gross Profit	$71.3M	$71.3M
Operating Expenses	-$901M	-$830M
Operating Income	-$830M	-$830M
Other Income / Expense	$1.1B	$274M
Pre-tax Income	$274M	$274M
Tax Benefit	$1.21M	$275M
Net Income	$277M	$277M

Revenue$187M
Cost of Revenue-$116M
Gross Profit$71.3M
Operating Expenses-$901M
Operating Income-$830M
Other Income / Expense$1.1B
Pre-tax Income$274M
Tax Benefit$1.21M
Net Income$277M

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