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 Intuitive Machines (LUNR) revenue becomes net income?

For TTM through Q1 2026, Intuitive Machines turned $334M of revenue into -$123M of net income — a net margin of -36.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Intuitive Machines (LUNR) gross, operating, and net margins?

For TTM through Q1 2026, Intuitive Machines reported a gross margin of 25.7%, an operating margin of -34.8%, and a net margin of -36.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Intuitive Machines (LUNR) 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.

Intuitive Machines (LUNR) Income Statement Waterfall

Revenue

$334M

Gross Margin

+25.7%

Operating Margin

-34.8%

Net Margin

-36.8%

Income statement waterfall for Intuitive Machines (LUNR) — TTM through Q1 2026

Net income: -$123M

Margin breakdown for Intuitive Machines (LUNR) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$334M	$334M
Cost of Revenue	-$248M	$85.9M
Gross Profit	$85.9M	$85.9M
Operating Expenses	-$202M	-$116M
Operating Income	-$116M	-$116M
Other Income / Expense	-$40M	-$156M
Pre-tax Income	-$156M	-$156M
Income Tax	-$3.95M	-$160M
Other Items	$37.3M	-$123M
Net Loss	-$123M	-$123M

Revenue$334M
Cost of Revenue-$248M
Gross Profit$85.9M
Operating Expenses-$202M
Operating Income-$116M
Other Income / Expense-$40M
Pre-tax Income-$156M
Income Tax-$3.95M
Other Items$37.3M
Net Loss-$123M

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