York Space Systems (YSS) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $84.171M, down 7% YoY; net loss was $807.398M, including a $749.737M non-cash goodwill impairment. Adjusted EBITDA loss was $27.575M.

• Backlog was $581M at September 30, while identified pipeline reached $14.9B; the 2026 proposal win rate was 83%.

• Non-GAAP contribution margin rose to 40% from 35%; FY2026 revenue guidance was narrowed to $380M–$400M.

Financial highlights

• Q3 revenue was $84.171M versus $90.763M YoY; gross profit was $15.519M versus $20.266M, with gross margin at 18% versus 22%.

• Q3 net loss was $807.398M versus $20.081M, including a $749.737M goodwill impairment; basic and diluted loss per share was $5.99.

• Adjusted EBITDA loss was $27.575M versus $3.399M in Q3 2025; 9M loss was $40.7M versus $6.9M.

• 9M revenue rose 4% to $293.1M; gross profit was $59.8M versus $54.4M, and net loss was $961.6M.

Outlook and guidance

• FY2026 revenue guidance narrowed to $380M–$400M, retaining a $390M midpoint.

• Management expects significant awards in 2027 and beyond, but timing, budget priorities and task-order funding remain uncertain; anticipated contract activity is positioned for H1 2027.

• Over 57% of the $581M backlog is expected to convert to revenue within 12 months; forecasts indicate uncertainty meeting the minimum revenue covenant in 2027.