Second Quarter 2026
Filed Aug 13, 2026York Space Systems Reports Second Quarter 2026 Results Significant Backlog Potential Growth on Eight Contract Wins at 88% Win Rate Year-to-Date
Revenue increased 10% and gross profit increased 133%, with gross margin reaching 24%, but net loss increased 62%, Adjusted EBITDA remained negative, backlog declined from March 31, and the company reduced full-year revenue guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended June 30, 2026GAAP | $ 92,547 | – | 10 % |
| Cost of revenues, three months ended June 30, 2026GAAP | 70,367 | – | – |
| Gross profit, three months ended June 30, 2026GAAP | $ 22,180 | – | 133 % |
| Gross profit %, three months ended June 30, 2026GAAP | 24 % | – | – |
| Contribution margin, three months ended June 30, 2026non-GAAP | $ 39,307 | – | – |
| Contribution margin %, three months ended June 30, 2026non-GAAP | 42 % | – | – |
| Selling, general and administrative expenses, three months ended June 30, 2026GAAP | 40,825 | – | – |
| Stock compensation expense, three months ended June 30, 2026GAAP | 10,893 | – | – |
| Research and development expenses, three months ended June 30, 2026GAAP | 5,766 | – | – |
| Transaction costs, three months ended June 30, 2026GAAP | 6,009 | – | – |
| Total operating expenses, three months ended June 30, 2026GAAP | 63,493 | – | – |
| Loss from operations, three months ended June 30, 2026GAAP | (41,313) | – | – |
| Net loss, three months ended June 30, 2026GAAP | $ (39,343) | – | 62 % |
| Basic and diluted net loss per share, three months ended June 30, 2026GAAP | $ (0.31) | – | – |
| Adjusted EBITDA, three months ended June 30, 2026non-GAAP | $ (9,503) | – | 7 % |
| Revenue, six months ended June 30, 2026GAAP | $ 208,890 | – | 10 % |
| Gross profit, six months ended June 30, 2026GAAP | $ 44,330 | – | 30 % |
| Gross profit %, six months ended June 30, 2026GAAP | 21 % | – | – |
| Contribution margin, six months ended June 30, 2026non-GAAP | $ 79,373 | – | – |
| Contribution margin %, six months ended June 30, 2026non-GAAP | 38 % | – | – |
| Loss from operations, six months ended June 30, 2026GAAP | (151,779) | – | – |
| Net loss, six months ended June 30, 2026GAAP | $ (154,185) | – | 329 % |
| Basic and diluted net loss per share, six months ended June 30, 2026GAAP | $ (1.76) | – | – |
| Adjusted EBITDA, six months ended June 30, 2026non-GAAP | $ (13,142) | – | 279 % |
| Backlog, as of June 30, 2026other | $ 592,049 | down 8% | 9% |
| Cash and cash equivalents, as of June 30, 2026GAAP | $ 534,000 | – | – |
| Long-term debt, net, as of June 30, 2026GAAP | 141,419 | – | – |
full year 2026 outlook
- Revenue$375 million to $405 million
- NoteThe majority of the decrease in guidance is due to the removal of the new business revenue in 2026 given the shift in government acquisition methodologies.
What drove it
- Revenue increased $8.7 million, or 10%, to $92.5 million, primarily driven by growth in York’s major government programs.
- Gross Margin increased 13 percentage points to 24%; Gross Profit was $22.2 million, up from $9.5 million in the year-ago quarter.
- The improvement in gross margin is largely attributable to the rolling off of a negative EAC adjustment last year.
- Year-to-date, York secured eight contracts at an approximately 88% win rate across ten different mission areas.
- York expanded its national security customer base with four new contract awards in Q2, including three IDIQ vehicles, one of which has already generated two delivery orders.
- York completed its acquisition of ALL.SPACE in July and completed its acquisition of Solestial, Inc.
- York became the first performer to complete its T1TL deliveries, launching a second dedicated Falcon 9 that put 21 York-built satellites on orbit and bringing York’s program record to 42-for-42.
Concerns
- York is bringing down its full year 2026 revenue guidance.
- The company cited a meaningful shift in U.S. government procurement from a rapid succession of larger RFPs to an IDIQ approach that is slow to start.
- Backlog stood at $592.0 million on June 30, down 8% from $642.3 million on March 31.
- Second-quarter net loss was $ (39,343), compared with $ (24,234) in the year-ago quarter.
- Adjusted EBITDA was $ (9,503) in the second quarter and $ (13,142) for the six months ended June 30, 2026.
- Net cash used in operating activities for the six months ended June 30, 2026 was (186,637).
What to watch
- Conversion of the six contracts awarded under the new acquisition approach into follow-on operational programs in 2027.
- Task-order activity on York's IDIQ awards, including the NITE-STAR IDIQ selection and the delivery orders referenced in the release.
- Execution of the Nemesis mission, which remains on track for spacecraft delivery in Q4.
- Integration and anticipated benefits of the ALL.SPACE and Solestial acquisitions.
- Progress against the $11.5 billion government opportunity pipeline across 12 potential customers.
- Backlog development following the June 30 balance of $592,049.
Balance sheet and cash flow
- As of June 30, 2026, our cash and cash equivalents were $534 million and availability under our Revolving Facility was $150 million, for total liquidity of $684 million.
- Net cash (used in) operating activities for the six months ended June 30, 2026 was (186,637), compared with (99,822) for the six months ended June 30, 2025.
- Capital expenditures for the six months ended June 30, 2026 were (3,430), compared with (1,272) for the six months ended June 30, 2025.
- Acquisition of business, net of cash acquired, for the six months ended June 30, 2026 was (25,152).
- Proceeds from issuance of common stock in connection with the IPO, net of underwriting discounts and commissions, for the six months ended June 30, 2026 were 592,833.
- Net cash provided by financing activities for the six months ended June 30, 2026 was 587,766, compared with 25,000 for the six months ended June 30, 2025.
- Cash at end of period was $ 534,000, compared with $ 21,218 for the six months ended June 30, 2025.
- Long-term debt, current, as of June 30, 2026 was 5,625, compared with 3,750 as of December 31, 2025.
- Long-term debt, net, as of June 30, 2026 was 141,419, compared with 144,962 as of December 31, 2025.
Analysis
York reported second-quarter revenue of $ 92,547, up 10% from $ 83,839, with management attributing the increase primarily to growth in major government programs. Gross profit rose to $ 22,180 from $ 9,526, while GAAP gross profit margin increased to 24 % from 11 %. The company attributed the margin improvement largely to the rolling off of a negative EAC adjustment last year. Non-GAAP contribution margin was $ 39,307 and contribution margin % was 42 %.
The improvement in gross profit did not translate into profitability. Total operating expenses were 63,493 versus 30,758 a year earlier, including 10,893 of stock compensation expense and 6,009 of transaction costs. Loss from operations was (41,313), net loss was $ (39,343), and basic and diluted net loss per share was $ (0.31). Adjusted EBITDA remained negative at $ (9,503), compared with $ (8,919) in the year-ago quarter. For the six months ended June 30, net loss was $ (154,185) and Adjusted EBITDA was $ (13,142).
Demand indicators include eight year-to-date contract wins at an approximately 88% win rate across ten mission areas, four new national-security contract awards in Q2, and six contracts awarded under the newer government acquisition approach during 2026. Management described the procurement shift toward IDIQ structures as slower at initial award but capable of faster subsequent Task Order awards. Backlog was $ 592,049 as of June 30, 2026, compared with $ 542,557 as of December 31, 2025, but the release also said backlog was down 8% from $642.3 million on March 31.
Capital and liquidity were strengthened by the IPO. Cash and cash equivalents were $ 534,000 as of June 30, 2026, availability under the Revolving Facility was $150 million, and total liquidity was $684 million. Net cash used in operating activities for the six months ended June 30 was (186,637), while net cash provided by financing activities was 587,766, including 592,833 of IPO common-stock issuance proceeds, net of underwriting discounts and commissions. The company also reported acquisition activity, including ALL.SPACE in July and Solestial.
The principal change in the outlook is a reduction in full-year 2026 revenue guidance to $375 million to $405 million. Management said the majority of the reduction results from removing new-business revenue in 2026 because of changing government acquisition methodologies. York presented a $11.5 billion pipeline across 12 potential customers and said the contracts secured under the new approach are expected to become meaningful drivers of growth in 2027 and beyond. Near-term execution therefore hinges on Task Order conversion, government budget progress on larger programs, backlog performance, and delivery of the Nemesis spacecraft in Q4.
Management, verbatim
Through the first half of 2026, we’ve secured eight contract wins at an 88% win rate, a reflection of both the breadth of our capabilities and the confidence customers place in our performance on orbit.
Dirk Wallinger, CEO of York
Throughout 2026, and increasingly in Q2, we continued to observe a meaningful shift in how the U.S. government is acquiring spacecraft systems, moving away from a ‘rapid succession of larger RFPs’ to an IDIQ approach that is slow to start but often faster to accelerate Task Orders later.
Dirk Wallinger, CEO of York
As a result, we are bringing down our full year 2026 revenue guidance.
Brian Frantz, interim CFO and CAO of York
Not in the filing
stated, not guessed- Revenue by operating segment
- Segment year-over-year and quarter-over-quarter revenue comparisons
- Non-GAAP earnings or loss per share
- Quarterly operating cash flow
- Free cash flow
- Share repurchases
- Dividends
- Prior-quarter revenue, gross profit, operating income, net loss, EPS, and Adjusted EBITDA
- Full-year 2026 gross margin guidance
- Full-year 2026 operating expense guidance
- Full-year 2026 tax-rate guidance
- Previous-quarter outlook for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.