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 D-Wave Quantum (QBTS) revenue becomes net income?

For TTM through Q1 2026, D-Wave Quantum turned $12.4M of revenue into -$368M of net income — a net margin of -2957.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are D-Wave Quantum (QBTS) gross, operating, and net margins?

For TTM through Q1 2026, D-Wave Quantum reported a gross margin of 66.3%, an operating margin of -1155.6%, and a net margin of -2957.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does D-Wave Quantum (QBTS) 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.

D-Wave Quantum (QBTS) Income Statement Waterfall

Revenue

$12.4M

Gross Margin

+66.3%

Operating Margin

-1,155.6%

Net Margin

-2,957.2%

Income statement waterfall for D-Wave Quantum (QBTS) — TTM through Q1 2026

Net income: -$368M

Margin breakdown for D-Wave Quantum (QBTS) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$12.4M	$12.4M
Cost of Revenue	-$4.2M	$8.25M
Gross Profit	$8.25M	$8.25M
Operating Expenses	-$152M	-$144M
Operating Income	-$144M	-$144M
Other Income / Expense	-$253M	-$396M
Pre-tax Income	-$396M	-$396M
Tax Benefit	$28.5M	-$368M
Net Loss	-$368M	-$368M

Revenue$12.4M
Cost of Revenue-$4.2M
Gross Profit$8.25M
Operating Expenses-$152M
Operating Income-$144M
Other Income / Expense-$253M
Pre-tax Income-$396M
Tax Benefit$28.5M
Net Loss-$368M

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