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 program growth.

• Completed IPO in January 2026, raising $583.4 million in net proceeds, providing significant capital for growth, investment, and M&A.

• Acquired Orbion Space Technology for $74.9 million, enhancing supply chain with electric propulsion systems; announced agreement to acquire ALL.SPACE for $355 million, expanding into advanced satellite communications.

• Backlog increased 18% to $642.3 million, supported by new commercial contracts, with over 55% expected to be recognized as revenue within 12 months.

• Secured a $187 million commercial contract for a 20+ satellite constellation and multiple IDIQ awards in national security and defense.

Financial highlights

• Revenue for Q1 2026 was $116.3 million, up $10.1 million or 9% year-over-year.

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

• Contribution margin improved to $40.1 million (34% of revenue), up from $35.3 million (33%).

• 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 revolver availability.

• 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.

Outlook and guidance

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

• Over 55% of backlog is expected to be recognized as revenue in the next 12 months; 70% of revenue guidance is already in backlog.

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

• Guidance does not include contributions from ALL.SPACE until deal closure, expected in H2 2026.

• Backlog supports a projected increase in satellites on orbit by over 4x by 2027, based on existing contracts.