Q3 FY2026
Filed Nov 4, 2026Redwire Q3 2026: revenue up 5.4% to $109.0 million, adjusted gross margin 32.3%, net loss narrowed to $(23.2) million, backlog $619.7 million
Revenue grew 5.4% year-over-year, the company reports a record 32.3% gross margin, the GAAP net loss narrowed by $18.0 million and backlog and book-to-bill rose. Against that, Adjusted EBITDA declined by $2.7 million to $(5.3) million, R&D rose 87.1%, operating cash flow and free cash flow were negative in both the quarter and the nine months, and the company says revenue timing continues to be uneven.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenues, three months ended Sept 30, 2026GAAP | $109.0M | – | 5.4% |
| Revenues, nine months ended Sept 30, 2026GAAP | $323.1M | – | – |
| Gross profit, three months ended Sept 30, 2026GAAP | $35.22M | – | – |
| Gross profit, nine months ended Sept 30, 2026GAAP | $93.57M | – | – |
| Adjusted Gross Margin, three months ended Sept 30, 2026non-GAAP | 32.3% | – | – |
| Adjusted Gross Margin, nine months ended Sept 30, 2026non-GAAP | 29.0% | – | – |
| Gross margin as stated in Q3 highlights, three months ended Sept 30, 2026other | 32.3% | – | – |
| Cost of sales, three months ended Sept 30, 2026GAAP | $73.81M | – | – |
| Cost of sales, nine months ended Sept 30, 2026GAAP | $229.5M | – | – |
| Selling, general and administrative expenses, three months ended Sept 30, 2026GAAP | $46.16M | – | – |
| Selling, general and administrative expenses, nine months ended Sept 30, 2026GAAP | $171.1M | – | – |
| Transaction expenses, three months ended Sept 30, 2026GAAP | $934K | – | – |
| Transaction expenses, nine months ended Sept 30, 2026GAAP | $985K | – | – |
| Research and development, three months ended Sept 30, 2026GAAP | $14.40M | – | increased $6.7 million or 87.1% |
| Research and development, nine months ended Sept 30, 2026GAAP | $39.52M | – | – |
| Operating income (loss), three months ended Sept 30, 2026GAAP | −$26.27M | – | – |
| Operating income (loss), nine months ended Sept 30, 2026GAAP | −$118.1M | – | – |
| Interest (income) expense, net, three months ended Sept 30, 2026GAAP | −$2.65M | – | – |
| Interest (income) expense, net, nine months ended Sept 30, 2026GAAP | $610K | – | – |
| Other (income) expense, net, three months ended Sept 30, 2026GAAP | −$21K | – | – |
| Loss before income taxes, three months ended Sept 30, 2026GAAP | −$23.59M | – | – |
| Income tax expense (benefit), three months ended Sept 30, 2026GAAP | −$417K | – | – |
| Income tax expense (benefit), nine months ended Sept 30, 2026GAAP | $2.09M | – | – |
| Net income (loss), three months ended Sept 30, 2026GAAP | −$23.18M | – | improved by $18.0 million |
| Net income (loss), nine months ended Sept 30, 2026GAAP | −$140.7M | – | – |
| Net income (loss) available to common shareholders, three months ended Sept 30, 2026GAAP | −$23.18M | – | – |
| Diluted EPS, three months ended Sept 30, 2026GAAP | $(0.09) per share | – | improved by $0.20 per share |
| Diluted EPS, nine months ended Sept 30, 2026GAAP | $(0.64) per share | – | – |
| Adjusted EPS, three months ended Sept 30, 2026non-GAAP | $(0.06) per share | – | – |
| Adjusted EPS, nine months ended Sept 30, 2026non-GAAP | $(0.28) per share | – | – |
| Adjusted EBITDA, three months ended Sept 30, 2026non-GAAP | −$5.29M | – | decreased by $2.7 million |
| Adjusted EBITDA, nine months ended Sept 30, 2026non-GAAP | −$17.72M | – | – |
| Total Segment Adjusted EBITDA, three months ended Sept 30, 2026non-GAAP | $10.05M | – | – |
| Total Segment Adjusted EBITDA, nine months ended Sept 30, 2026non-GAAP | $24.25M | – | – |
| Net cash provided by (used in) operating activities, three months ended Sept 30, 2026GAAP | −$63.59M | – | – |
| Net cash provided by (used in) operating activities, nine months ended Sept 30, 2026GAAP | −$95.19M | – | – |
| Free Cash Flow, three months ended Sept 30, 2026non-GAAP | −$66.35M | – | – |
| Free Cash Flow, nine months ended Sept 30, 2026non-GAAP | −$114.4M | – | – |
| Contracted backlog, as of Sept 30, 2026other | $619.7M | – | nearly 75% increase year-over-year |
| Contracts awarded (total), three months ended Sept 30, 2026other | $188.7M | – | – |
| Book-to-bill ratio, three months ended Sept 30, 2026other | 1.73 | – | – |
| Book-to-bill ratio, last twelve months ended Sept 30, 2026other | 1.63 | – | – |
| Total liquidity, as of Sept 30, 2026other | $538.9M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Space, three months ended Sept 30, 2026Segment revenue was $61,266 thousand against $46,548 thousand in the same quarter of 2025. Segment Adjusted EBITDA was $2,806 thousand against $(1,900) thousand. The filing cites a follow-on contract from Axiom Space for two ROSA wings and a $20 million DARPA award for a scaled SabreSat spacecraft test. Q3 Space contracts awarded were $119,906 thousand against $63,656 thousand. | $61.27M | – | – |
| Defense Tech, three months ended Sept 30, 2026Segment revenue was $47,769 thousand against $56,884 thousand in the same quarter of 2025, a decline the release does not explain. Segment Adjusted EBITDA was $7,240 thousand against $6,459 thousand. The filing cites follow-on Stalker orders from key customers including the U.S. National Guard. Q3 Defense Tech contracts awarded were $68,750 thousand against $66,144 thousand. | $47.77M | – | – |
| Space, nine months ended Sept 30, 2026Prior-year nine-month revenue was $155,363 thousand. Nine-month Segment Adjusted EBITDA was $(2,926) thousand against $6,585 thousand. Nine-month contracts awarded and book-to-bill for this segment are not in the nine-month view of the filing. | $169.1M | – | – |
| Defense Tech, nine months ended Sept 30, 2026Prior-year nine-month revenue was $71,224 thousand, a period that included the Edge Autonomy acquisition completed in the second quarter of 2025 according to the filing. Nine-month Segment Adjusted EBITDA was $27,173 thousand against $(6,155) thousand. | $154.0M | – | – |
FY2026 (year ended December 31, 2026) outlook
- Revenue$450 million to $500 million
- NoteReaffirmed in this release: 'Redwire reaffirms that it is forecasting revenues of $450 million to $500 million.' The CFO said the company again reaffirms its 2026 revenue forecast.
Capital returns
- No share repurchase program activity is printed for the nine months ended Sept 30, 2026. Shares repurchased for settlement of employee tax withholdings were $(965) thousand, against $(2,763) thousand in the nine months of 2025.
- Convertible preferred stock dividend paid was $(3,358) thousand in the nine months ended Sept 30, 2026. No preferred dividend cash payment is printed for 2025 in the cash flow statement, and the preferred stock shows no shares outstanding at Sept 30, 2026.
- Proceeds from issuance of common stock were $566,670 thousand in the nine months ended Sept 30, 2026, against $337,806 thousand in the nine months of 2025. Payment of equity issuance costs was $(14,031) thousand. These are capital raises, not returns to shareholders.
- Common shares issued and outstanding were 250,181,098 at Sept 30, 2026, against 191,915,804 at Dec 31, 2025.
What drove it
- The company says that Q3 gross margin improvement was driven by year-over-year and sequential improvement from both its Space and Defense Tech segments (CFO Chris Edmunds).
- The company says it achieved a record gross margin in the quarter and that the quality of revenue is improving as it delivers mission-critical products and solutions across multiple domains (CEO Peter Cannito).
- The company states that Q3 Book-to-Bill rose to 1.73 with $188.7 million in contracts awarded, and cites the DARPA SabreSat award of $20 million and the Axiom Space ROSA follow-on.
- The company states that after the quarter it launched key technologies to the International Space Station, including four microgravity investigations and the fourth and final pair of Roll-Out Solar Arrays, completing a historic power modernization effort.
- The company says R&D expense increased $6.7 million or 87.1% over the same period, reflecting its investment in future growth.
- The company says that with $323.1 million of recorded revenue in the nine months and record backlog of $619.7 million, plus $46.8 million of work in process and finished goods inventory, it reaffirms its 2026 revenue forecast.
Concerns
- Revenue timing is uneven, in the company's own words. Q3 revenue grew 5.4% year-over-year, but Defense Tech revenue fell from $56,884 thousand to $47,769 thousand in the quarter, and the filing does not print an explanation for that decline.
- Adjusted EBITDA fell by $2.7 million to $(5,290) thousand in Q3 while R&D rose 87.1%, and the release frames the R&D increase as investment in future growth.
- Operating cash flow was $(63,590) thousand in Q3 and free cash flow was $(66,354) thousand. For the nine months, operating cash flow was $(95,192) thousand and free cash flow was $(114,397) thousand. Balance sheet contract assets rose to $84,770 thousand and inventory to $99,778 thousand from December 2025.
- Adjusted EPS of $(0.06) per share and Adjusted EBITDA are non-GAAP. The GAAP diluted EPS was $(0.09) per share and the GAAP net loss was $(23.2) million in Q3.
- The release prints two different prior-year gross margin figures. The Adjusted Gross Margin table shows 27.1% for Q3 2025, while the highlights say gross margins expanded 'from 16.3% to 32.3%'. The GAAP gross margin for either period is not printed in the filing.
- The release identifies material weaknesses. The forward-looking statements list existing material weaknesses and the company's use of capital market and advisory fees for internal control remediation, which totaled $1,355 thousand in Q3.
What to watch
- Whether the company delivers the reaffirmed FY2026 revenue range of $450 million to $500 million, given nine-month revenue of $323,081 thousand.
- Conversion of backlog of $619.7 million into revenue, and the Q4 contract awards needed to keep the book-to-bill ratio above 1.0.
- Whether gross margin stays at the reported 32.3% level, and whether the revenue mix between Space and Defense Tech changes it.
- Whether operating cash flow turns positive, given the nine-month figure of $(95,192) thousand and the rise in contract assets and inventory.
- The trend in R&D expense, which rose to $14,396 thousand in Q3 from $7,693 thousand, and its effect on Adjusted EBITDA.
- Use of the $566,670 thousand of common stock issuance proceeds and the remaining $489 million of cash on the balance sheet.
Balance sheet and cash flow
- Cash, cash equivalents and restricted cash was $488,866 thousand at Sept 30, 2026, against $95,183 thousand at Dec 31, 2025. Total liquidity of $538.9 million is comprised of $488.9 million in cash, cash equivalents and restricted cash and $50.0 million in available borrowings from existing credit facilities, as footnoted in the release. The release states total liquidity was a 313.9% increase over the end of 2025.
- Total assets were $1,898,603 thousand at Sept 30, 2026, against $1,449,137 thousand at Dec 31, 2025. Total shareholders' equity was $1,609,135 thousand against $1,060,016 thousand.
- Long-term debt, net was $42,502 thousand at Sept 30, 2026, against $80,036 thousand at Dec 31, 2025. Short-term debt, including current portion of long-term debt, was $4,500 thousand against $5,162 thousand.
- Contract assets were $84,770 thousand against $44,019 thousand at Dec 31, 2025. Inventory, net was $99,778 thousand against $55,847 thousand. Deferred revenue was $72,555 thousand against $60,119 thousand.
- Warrant liabilities were nil at Sept 30, 2026, against $4,213 thousand at Dec 31, 2025. The company's cash flow statement shows a loss on change in fair value of warrants of $14,147 thousand for the nine months ended Sept 30, 2026.
- Nine-month cash flow from investing activities was $(19,205) thousand, including purchases of property, plant and equipment of $(15,040) thousand and purchase of intangible assets of $(4,165) thousand. Nine-month cash from financing activities was $509,148 thousand.
- The Free Cash Flow reconciliation prints capital expenditures of $(19,205) thousand for the nine months ended Sept 30, 2026, the same figure as the cash flow statement's total investing line. The Q3 capital expenditures figure is $(2,764) thousand against $(7,489) thousand.
Analysis
Redwire reported third-quarter 2026 revenue of $109,035 thousand, up 5.4% from $103,432 thousand a year earlier. Space revenue rose to $61,266 thousand from $46,548 thousand, while Defense Tech revenue fell to $47,769 thousand from $56,884 thousand. Nine-month revenue was $323,081 thousand against $226,587 thousand. The release reports record gross margin, with Adjusted Gross Margin of 32.3% against 27.1% a year earlier and GAAP gross profit of $35,222 thousand against $16,810 thousand. The GAAP gross margin percentage itself is not printed in the release.
Profitability improved at the GAAP net line but not at the Adjusted EBITDA line. The net loss narrowed to $(23,178) thousand from $(41,152) thousand, and GAAP diluted EPS was $(0.09) against $(0.29). Adjusted EBITDA moved the other way, to $(5,290) thousand from $(2,569) thousand. R&D expense rose from $7,693 thousand to $14,396 thousand, which the company describes as investment in future growth. SG&A fell to $46,161 thousand from $50,285 thousand. Operating loss narrowed to $(26,269) thousand from $(41,852) thousand. Total Segment Adjusted EBITDA was $10,046 thousand, with Space at $2,806 thousand and Defense Tech at $7,240 thousand.
Demand indicators were the strongest part of the report. Contracts awarded were $188,656 thousand against $129,800 thousand, giving a quarterly book-to-bill of 1.73 against 1.25, and a last-twelve-months book-to-bill of 1.63 against 1.05. Contracted backlog was $619.7 million at Sept 30, 2026, against $411,246 thousand at Dec 31, 2025. The release describes backlog growth as nearly 75% year-over-year without printing the prior-year backlog figure.
Cash generation remained negative. Operating cash flow was $(63,590) thousand in the quarter and $(95,192) thousand for nine months, and free cash flow was $(114,397) thousand for nine months, a non-GAAP measure. Cash, cash equivalents and restricted cash rose to $488,866 thousand, mainly from $566,670 thousand of common stock issuance proceeds in the nine months, and total liquidity was $538.9 million. Long-term debt fell to $42,502 thousand from $80,036 thousand at year-end 2025.
The company reaffirmed its FY2026 revenue forecast of $450 million to $500 million. Nine-month revenue of $323,081 thousand leaves the full-year range dependent on fourth-quarter revenue, and the release does not print a gross margin, operating expense or tax guide.
Management, verbatim
Although revenue timing continues to be uneven, with another quarter of record gross margins expanding from 16.3% to 32.3% year-over-year, the quality of our revenue is improving as we deliver mission-critical products and solutions across multiple domains.
Peter Cannito, Chairman, Chief Executive Officer, and President
During the third quarter of 2026, Redwire achieved record gross margins of 32.3%, driven by year-over-year and sequential improvement from both our Space and Defense Tech segments.
Chris Edmunds, Chief Financial Officer
With $323.1 million of recorded revenue during the first nine months of 2026 supported by a record $619.7 million in Backlog and $46.8 million of work in process and finished goods inventory, we again reaffirm our 2026 revenue forecast.
Chris Edmunds, Chief Financial Officer
Not in the filing
stated, not guessed- GAAP gross margin percentage for Q3 2026 and Q3 2025 is not printed; only Adjusted Gross Margin is printed in the reconciliation table.
- Prior-year percentage change for quarterly and nine-month gross profit, operating loss, net loss, R&D, SG&A and cost of sales is not printed as a percentage.
- Prior-year backlog as of Sept 30, 2025 is not printed; the release gives only the 'nearly 75%' description.
- Prior-year and prior-quarter figures for segment revenue as a percentage change are not printed.
- Prior-quarter (Q2 2026) comparisons are not printed in this release, so sequential changes are unavailable.
- Gross margin guidance, operating expense guidance and tax rate guidance for FY2026 are not provided.
- Analyst consensus, price targets and share price reaction are not in the document.
- Nine-month contracts awarded and nine-month book-to-bill by segment are not printed.
- The Q3 2025 gross margin cited in the highlights (16.3%) differs from the 27.1% Adjusted Gross Margin printed for Q3 2025; the filing does not reconcile the two.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.