York Space Systems (YSS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 9% year-over-year to $116.3 million, driven by commercial and government awards and major contract wins, including a $187 million multi-year constellation deal.

• Completed IPO in January 2026, raising net proceeds of $583.4 million, providing capital for business development, inventory build-out, and M&A, including the acquisition of Orbion and the announced agreement to acquire ALL.SPACE.

• Backlog increased 18% to $642.3 million at quarter end, with over 55% expected to be recognized as revenue within 12 months and supporting a projected >4x increase in satellites on orbit by 2027.

• Multiple IDIQ awards secured in national security and defense, expanding presence in critical mission areas and reinforcing government confidence.

• Inventory build-out underway to reduce delivery timelines by up to 75%, supporting accelerated deployment and customer needs.

Financial highlights

• Revenue for Q1 2026 was $116.3 million, up $10.1 million or 9% from the prior year.

• Gross margin was 19%, down from 23% year-over-year, due to EAC adjustments and non-recurring depreciation expense.

• Contribution margin improved to 34%, with contribution margin dollars rising to $40.1 million from $35.3 million.

• Adjusted EBITDA was negative $3.6 million, compared to positive $5.5 million last year.

• Cash and cash equivalents stood at $655.7 million, with total liquidity of $805.7 million including an undrawn $150 million revolver.

• Net loss widened to $114.8 million from $11.7 million, driven by $84.7 million in stock-based compensation and $5.9 million in transaction costs.

• Loss per share was $1.51, with $1.07 attributed to non-recurring IPO-related non-cash charges.

• Capex increased to $2.1 million in Q1 2026.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $545 million to $595 million, up 48% year-over-year at the midpoint.

• 70% of the revenue guidance is already in backlog; the remainder is expected from new business wins.

• Q2 2026 revenue expected to be roughly flat year-over-year due to supply chain delays, with revenue shifting to H2.

• Expects to recognize over 55% of backlog as revenue in the next 12 months.

• Guidance does not include contributions from ALL.SPACE, pending deal closure.