Redwire reported a 32.3% gross margin for the third quarter of 2026, up from 16.3% a year earlier. The US space and defense technology supplier also reported a $23.2 million net loss for the quarter. Both figures can be true because gross margin measures what remains after the cost of generating revenue, while the net result includes expenses and other items further down the income statement.
Start with the same period and units
The gross margin rose by 16 percentage points. That is the difference between 32.3% and 16.3%, not a 16% relative increase. At $109 million of quarterly revenue, a 32.3% gross margin implies roughly $35.2 million in gross profit using the rounded headline figures. This is a useful check before comparing the margin with a dollar figure such as net income.
Read down the income statement
In a fictional example, a supplier makes $100 in sales and spends $68 on the cost of those sales. Its gross profit is $32, or 32% of sales. If the remaining expenses and other items reduce earnings by a net $40, it ends with an $8 net loss. The example shows the arithmetic and does not assign Redwire’s loss to any one expense.
When comparing quarters, put revenue, gross margin and net income in separate columns. Check the income statement for operating expenses and other items before explaining the gap. Then look at the cash flow statement separately: a margin percentage does not show how much cash customers paid during the quarter.
Redwire’s November 4 third-quarter results and financial tables