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 Rigetti Computing (RGTI) revenue becomes net income?

For TTM through Q1 2026, Rigetti Computing turned $10M of revenue into -$226M of net income — a net margin of -2253.6%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Rigetti Computing (RGTI) gross, operating, and net margins?

For TTM through Q1 2026, Rigetti Computing reported a gross margin of -19.8%, an operating margin of -888.4%, and a net margin of -2253.6%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Rigetti Computing (RGTI) 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.

Rigetti Computing (RGTI) Income Statement Waterfall

Revenue

$10M

Gross Margin

-19.8%

Operating Margin

-888.4%

Net Margin

-2,253.6%

Income statement waterfall for Rigetti Computing (RGTI) — TTM through Q1 2026

Net income: -$226M

Margin breakdown for Rigetti Computing (RGTI) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$10M	$10M
Cost of Revenue	-$12M	-$1.99M
Gross Profit	-$1.99M	-$1.99M
Operating Expenses	-$87M	-$89M
Operating Income	-$89M	-$89M
Other Income / Expense	-$137M	-$226M
Pre-tax Income	-$226M	-$226M
Income Tax	$0.00	-$226M
Net Loss	-$226M	-$226M

Revenue$10M
Cost of Revenue-$12M
Gross Profit-$1.99M
Operating Expenses-$87M
Operating Income-$89M
Other Income / Expense-$137M
Pre-tax Income-$226M
Income Tax$0.00
Net Loss-$226M

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