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 SpaceX (SPCX) revenue becomes net income?

For FY 2025, SpaceX turned $18.7B of revenue into -$4.94B of net income — a net margin of -26.4%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are SpaceX (SPCX) gross, operating, and net margins?

For FY 2025, SpaceX reported a gross margin of 49.4%, an operating margin of -13.9%, and a net margin of -26.4%. Each subtotal in the waterfall corresponds to one of these margins.

Why does SpaceX (SPCX) 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.

SpaceX (SPCX) Income Statement Waterfall

Revenue

$18.7B

Gross Margin

+49.4%

Operating Margin

-13.9%

Net Margin

-26.4%

Income statement waterfall for SpaceX (SPCX) — FY 2025

Net income: -$4.94B

Margin breakdown for SpaceX (SPCX) — FY 2025

Line item	Amount	Running total
Revenue	$18.7B	$18.7B
Cost of Revenue	-$9.45B	$9.22B
Gross Profit	$9.22B	$9.22B
Operating Expenses	-$11.8B	-$2.59B
Operating Income	-$2.59B	-$2.59B
Other Income / Expense	-$1.63B	-$4.22B
Pre-tax Income	-$4.22B	-$4.22B
Income Tax	-$718M	-$4.94B
Net Loss	-$4.94B	-$4.94B

Revenue$18.7B
Cost of Revenue-$9.45B
Gross Profit$9.22B
Operating Expenses-$11.8B
Operating Income-$2.59B
Other Income / Expense-$1.63B
Pre-tax Income-$4.22B
Income Tax-$718M
Net Loss-$4.94B

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