York Space Systems, Inc.

Q2 2026 revenue was $92.5 million, up $8.7 million or 10% year over year. Gross margin was 24%, up 13 percentage points from the year-ago quarter, and gross profit was $22.2 million, up $9.5 million. Contribution margin was 42%, up 18 percentage points, while adjusted EBITDA was a loss of $9.5 million versus a loss of $8.9 million a year ago. As of June 30, cash and cash equivalents were $534 million, with total liquidity of $684 million including a fully available $150 million revolver. Backlog was $592 million, down 8% sequentially and up 9% from the start of the year. Full-year 2026 revenue guidance was cut to $375 million-$405 million, with a midpoint of $390 million, versus a prior midpoint of $570 million. Management said gross margin for the rest of 2026 should stay in the mid-20% range.

Dirk Wallinger framed the quarter as strong operational execution, emphasizing 21 satellites launched, expanded mission capability, and York’s 42-for-42 delivery record on Tranche 1 Transport Layer satellites. He said the company is well positioned for a defense market increasingly centered on resilient communications, alternative PNT, and broader space-based architecture, and pointed to recent IDIQ and task-order wins as validation. His tone was optimistic but cautious on timing, repeatedly stressing that award timing has shifted later into 2027 even as the opportunity set remains large.

Brian Frantz highlighted that the 10% revenue increase was driven mainly by acquisitions completed in the second half of 2025 and first half of 2026, plus a new commercial contract, while major government program revenue was relatively flat. He said gross margin improved to 24% because of higher-margin post-launch operations and support work, and expected margins to remain in the mid-20% range for the rest of the year. He also noted SG&A plus R&D rose 52% year over year due to headcount, public-company costs, and acquisition-related expenses, with more SG&A coming from ALL.SPACE in the second half. On liquidity and capital allocation, he cited $534 million of cash, $684 million of total liquidity, and said $155 million was used after quarter end to close ALL.SPACE.

Analysts focused on how the new IDIQ contracting model changes the shape and timing of York’s contract conversion, and management said the best way to think about it is through the 2027 budget trajectory rather than near-term award size. On the revenue guide cut, management said roughly 30% of the old midpoint had been tied to new business, which was removed, while additional revenue moved into 2027 because of supply-chain issues; Brian said those two factors were about equal in the pushout. Questions also covered the Space Data Network demo award and commercial pipeline, and York said the demo confirms competition in that network while the commercial pipeline includes earth observation, weather, and services the government may increasingly buy commercially. On ALL.SPACE, management said the acquisition expands assured communications and GPS-denied capabilities, especially for unmanned systems, and could have meaningful growth potential over the next 2 to 3 years.