York Space Systems (YSS) investor relations material

Executive summary

• Q2 2026 revenue increased 10% year-over-year to $92.5 million, driven by acquisitions, new commercial contracts, and ground services growth.

• Achieved significant operational milestones, including 55 satellites launched, 8 launches, and operation of 3 constellations across 5 missions.

• Secured eight contract wins in 2026 at an 88% win rate, expanding into 10 mission areas and the national security customer base.

• Completed acquisitions of ALL.SPACE, Solestial, and Orbion, enhancing capabilities in assured communications, solar technology, and propulsion, and securing supply chain.

• Backlog at $592 million as of June 30, with potential unawarded contracts at $1.85 billion and an identified pipeline exceeding $11.5 billion.

Financial highlights

• Q2 2026 revenue: $92.5 million (up 10% YoY); gross profit: $22.2 million (up 133%); gross margin: 24% (up from 11% in Q2 2025).

• Contribution margin for Q2: 42% (non-GAAP), up from 24% last year; contribution margin dollars nearly doubled to $39.3 million.

• Adjusted EBITDA loss of $9.5 million for Q2 2026, slightly higher than prior year due to increased operating expenses.

• Net loss widened to $39.3 million from $24.2 million, impacted by higher SG&A, stock-based compensation, and transaction costs.

• Cash and cash equivalents of $534 million as of June 30, with $684 million in total liquidity including a fully available credit facility.

Outlook and guidance

• Full-year 2026 revenue guidance revised down to $375–$405 million, with a new midpoint of $390 million, $180 million below prior guidance.

• Revenue guidance reduction attributed to removal of new business and supply chain delays, shifting revenue into 2027.

• Over 55% of $592 million backlog expected to convert to revenue in the next 12 months; larger awards anticipated in 2027.

• Gross margin expected to remain in the mid-20% range for the remainder of 2026.

• Adjusted EBITDA expected to be negatively impacted in the second half due to lower revenue and acquisition-related costs.