YSS

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 5:00 p.m. ET Vice President of Investor Relations - Christopher Evenden Chief Executive Officer - Dirk Wallinger Chief Accounting Officer and Interim Chief Financial Officer - Brian Frantz Operator: Hello, everyone. Thank you for joining us, and welcome to the York Space Systems Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Christopher Evenden, Vice President of Investor Relations. Chris? Please go ahead. Christopher Evenden: Hello, everyone, and welcome to York Space Systems Second Quarter 2026 Earnings Call. With me on the line are Dirk Wallinger, our CEO; and Brian Frantz, our Chief Accounting Officer and Interim CFO. Please note that our earnings release is available at ir.yorksystems.com. In addition, we have posted an earnings presentation to accompany our prepared remarks on the same website. Lastly, after this call, we will post a transcript of our prepared remarks and an audio replay of this call. For those listening to the rebroadcast of this call, we remind you that the remarks made herein are as of today, Thursday, August 13, 2026, and have not been updated subsequent to this call. During this call, we will refer to certain non-GAAP measures. A reconciliation of these measures to the most directly comparable GAAP measures can be found in our earnings press release. We will also make statements that are considered forward looking, including those related to our 2026 outlook, future revenue and growth prospects anticipated award times, pipeline, award opportunities, backlog, M&A strategy, inventory building and the benefits of our acquisitions. Listeners are cautioned that our forward-looking statements involve certain assumptions, and are inherently subject to risks and uncertainties that can cause our actual results to differ materially from our current expectations. We advise listeners to review the risk factors and other discussions included in our 2025 annual report on Form 10-K, the 2026 Form 10-Qs and our other filings with the SEC. After the completion of our prepared remarks, we will open the call for questions. Now I'll turn the call over to Dirk. Dirk Wallinger: Thanks, Chris. Hello, and welcome to York's Second Quarter 2026 Earnings Call. I appreciate you taking the time to join us. Before we get into the highlights from the quarter, I want to take a moment to introduce Brian Frantz, who will be stepping into the role of Interim Chief Financial Officer at York, Brian joined us as the Chief Accounting Officer and played a central role in our transition to a public company with direct responsibilities for financial reporting, internal controls and SEC compliance. Brian brings more than 3 decades of financial leadership experience across public and private companies, including prior service as CFO of RE/MAX International and Principal Financial Officer of Intrepid Potash. You'll hear from Brian on the quarter's financials a bit later in the call. Q2 was another strong quarter of execution for York. We launched 21 more satellites, added new customers and expanded our portfolio mission capabilities. Revenue for the quarter was $92.5 million, up 10% year-over-year. Our backlog stood at $592 million and potential unawarded contracts reached $1.85 billion. Our identified pipeline now exceeds $11.5 billion. York's earnings deck describes these metrics, including potential on awarded contracts in more detail. In the first half of 2026, we secured eight contract wins at an 88% win rate on our proposals. We added four more contracts in this quarter with two task order wins and another IDIQ add in the last 45 days alone, a reflection of both the breadth of our capabilities and the confidence customers place in our performance on orbit. We have expanded our national security customer base, including three new IDIQ vehicles, expanding our contracts to cover 10 different mission areas. Those IDIQs have generated two delivery orders, an early signal of how quickly today's onboarding contracts are now converting into real mission work. A few of these wins are worth calling out in more detail. In July, York was awarded a task order contract on one of our highly selective IDIQs to deliver military system capabilities built on commercial technologies. That award reinforces our position as one of the only providers with an on-orbit performance record for operational systems and the commercial manufacturing scale required to support the resilient multi-vendor supply base the government is asking for. In early August, we were awarded another IDIQ task order for an on-orbit demonstration. The rapid conversion from IDIQ selection to multiple funded delivery order contracts in a matter of weeks reflects real near-term demand for York's proven in production spacecraft as the government scales their space-based architecture. We are encouraged that the government remains committed to a resilient supply base for their architectures, which strengthens the industrial base and delivers better outcomes for the war fighter. Our proven performance in orbit and ability to deliver at scale for operational systems is transitioning well into contract orders for next-generation systems that are aligned with current budget allocations. Resilient, assured or jam-resistant communications are increasingly becoming an in-theater need, and that need is only expected to grow as unmanned systems play a more decisive role in modern conflict their effectiveness and survivability depend directly on assured resilient communications across every phase of the mission in an environment where air superiority is denied, space will be the enabling network for those communications and by extension, the foundation of the defense architectures that will define the next era of war fighting. The character of conflict has changed and the architectures underneath it have to change with it. Whoever controls the assured communication systems controls the fight. That is why jam-resistant communications and alternative PNT matter, and it's why York is investing where we are. We are built for a war fighter who will operate across manned and unmanned formations, and we intend to be the prime that delivers the space-based infrastructure they will count on to win. The changing character of conflict leads directly into our acquisition of ALL.SPACE completed in July. ALL.SPACE, a leader in assured communications terminals extends our reach into adjacent markets and positions us to capture the accelerating demand for unmanned systems across every domain. ALL.SPACE also brings established contracts with the Army and Navy with momentum already carrying into a new DIU contract and $6 million follow-on order for 23 additional terminals from the Navy. ALL.SPACE and our other subsidiaries are expected to contribute roughly 10% to 15% of 2026 revenue. In July, we were selected by the U.S. Space Force for the NITE-STAR IDIQ, further extending our mission portfolio capabilities. NITE-STAR positions us to compete for task orders, integrating our satellite platforms with the global ground network operated by ATLAS Space Operations, a wholly owned subsidiary of York. Our expanding portfolio of mission types and capabilities positions York to compete for a broader set of opportunities. Roughly 23% of our contracts sit in network communications and the remaining 77% address noncommunication mission capabilities like AMTI, advanced fire control, remote proximity operations, missile warning, missile track and more. That breadth aligns directly with where defense budgets are planned and enables York to compete across the full range of programs shaping the next generation of defense. Shifting to the commercial side. We continue to see commercial opportunities increasing following our constellation win earlier this year and anticipate commercial systems becoming a larger portion of our revenue potential and growth trajectory. Our demonstrated ability to deliver at scale at price points unmatched by competitors continue to make us an attractive partner in the commercial sector. Shifting to execution. This quarter York became the first performer to complete its Tranche 1 Transport Layer deliveries, launching a second dedicated Falcon 9 that put 21 York build satellites on orbit and bringing York's program record to 42 for 42 ahead of every other awarde. That's a track record customers see, and it's showing up directly in awards we're winning today. To date, York has put 55 satellites on orbit across eight launches, and today, we are actively operating five unique mission sets and three constellations. That combination of scale and mission breadth positions York as the new space industry leader by a number of active missions, range of capabilities on orbit and military systems operating space today. Additional highlights from the quarter include our Nemesis mission, which cleared its Delta Critical Design Review and currently remains on track for delivery in Q4. Nemesis extends York's prime integration model into GEO in support of space domain awareness, missions and reinforces our ability to prime, integrate and deliver across orbital regimes. On the Dragoon program, we completed our initial mission objectives in a matter of months, demonstrating York's ability to deliver operationally relevant tactical communications at speed and scale. And we completed our acquisition of Solestial, a leading provider of next-generation space solar technology. Solestial secures domestic control of a critical element of our supply chain currently controlled by China, reduces geopolitical exposure across our manufacturing base, positions us to leverage advanced solar capabilities as a differentiator of future spacecraft designs. Before I turn it over to Brian to review the financials in depth I want to speak briefly to what we're seeing across the broader U.S. government acquisition landscape and what it means for York's growth trajectory. Through 2026 and increasingly in Q2, we've observed 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. This approach has a longer cycle to award the IDIQs initially. But once IDIQs are awarded, task orders can be awarded in a more rapid succession without the need for follow-on competitive award cycles. They generally pursue smaller on-ramp task order contracts to start, but can lead to multibillion dollar opportunities later for true operational systems. Highly selective IDIQs are more desirable as the budget size and smaller vendor pool represents significant revenue potential for awardees on discriminating IDIQs. York has been awarded six contracts under this new approach in 2026 alone, and we view them as significant drivers of growth into 2027, as the follow-on programs advance. York's contract wins range across very large swaths of capabilities that align well with the current budget allocations we are seeing. This shift is changing our expectations of award timing. And as a result, we are revising our full year 2026 revenue guidance. Brian will walk through the specifics in a moment, with our backlog potential unawarded contracts totaling $1.85 billion and an identified pipeline exceeding $11.5 billion, the opportunity in front of us is substantial. To wrap up, York is leading the new space industry, actively operating five unique missions and three constellations simultaneously. We are executing consistently for our customers, improving our hardware on-orbit and operational missions. We have secured eight new contracts in 2026 alone at an 88% win rate and we continue to expand our capabilities in line with where defense budgets are being planned. The opportunity in front of us is substantial, and York is positioned to capture it and deliver meaningful long-term value. With that, I'll turn it over to Brian. Brian Frantz: Thank you, Dirk. As Dirk discussed, we executed well during the second quarter, closed two acquisitions since our last call and added more new customers that have the potential to be very large in 2027 and 2028. Our revenue for the quarter was $92.5 million, up $8.7 million or 10% compared to the same quarter in the prior year. The increase was primarily driven by our revenues from acquisitions completed in the second half of 2025 in the first half of 2026 as well as our new commercial contract, which we announced earlier this year. Revenue from our major government programs remained relatively flat year-on-year. Gross margin was 24% in the current year quarter, up 13 percentage points from the year ago quarter, which was negatively impacted by an EAC adjustment. Our second quarter '26 gross margin also reflects higher gross margin contribution from our post-launch operations and support work. We expect our gross margin for the balance of the year to remain in the mid-20% range. Similarly, gross margin dollars were $22.2 million in the quarter, up $9.5 million in the year ago quarter, driven by improved margin percent on a larger revenue figure. Contribution margin expanded 18 percentage points to 42% in the second quarter, driven by a richer mix of newer vintage programs, which tend to have higher margins than our older vintage programs. Our direct materials expenses decreased in Q2 2026 over the second quarter of 2025 as we approach the end of our production for our Tranche 1 Transport Layer satellites which in its post-launch phase is incurring mostly labor costs. As we now have all 42 of these satellites successfully in orbit and healthy, our operations and sustainment revenues will increase and they have a higher contribution margin than the company average. Contribution margin dollars almost doubled, growing to $39.3 million from $20.3 million last year driven by the aforementioned mix in the EAC adjustment in the second quarter of 2025. Turning to operating expenses. Our SG&A plus R&D expenses increased 52% compared to the prior year quarter. This was primarily driven by an increase in overall headcount, increases in overhead related to the public company uplift and incremental salaries and costs related to the acquisitions of ATLAS, Orbion and to a lesser degree, Solestial, which was in June of 2026. Naturally, we will see an increase in SG&A expenses in the second half related to our acquisition of ALL.SPACE, which occurred in July. Most of the increase in our public company SG&A infrastructure is complete and we expect those costs to only increase slightly through the rest of 2026. Adjusted EBITDA for the quarter was a loss of $9.5 million, slightly elevated from the $8.9 million loss from the prior year quarter due to an increased operating expenses offsetting profitability growth in our gross margins. Our liquidity remains strong. As of June 30, we had cash and cash equivalents of $534 million, and our $150 million revolving credit facility remains fully available to us for total liquidity of $684 million. I would note that we used $155 million of our cash subsequent to quarter end as we closed the ALL.SPACE acquisition. Our backlog stood at $592 million as of June 30, down 8% from $642 million at the end of the first quarter, but up 9% from the start of the year, primarily due to our new commercial contract as well as a contract modification that occurred in the second quarter of 2026. Subsequent to quarter end, we also received task orders related to one of our IDIQs, and we believe those task orders will lead to larger awards in 2027. As Dirk mentioned earlier, we are bringing down our full year 2026 revenue guidance to a range of $375 million to $405 million. This new midpoint of $390 million is $180 million below our prior midpoint of $570 million. As we said on our previous call, about 30% of the prior midpoint of $570 million was new business. Given the contract environment that Dirk referenced, we had removed the new business from our guidance for the rest of the year. The remainder relates to supply chain issues where revenue is moving to the right into 2027, which is partially offset by revenue from our new acquisitions. We believe the right word shift of 2026 revenue plus the eight contracts we've already won so far this year position us to take significant strides in 2027 as the government looks to accelerate capabilities with proven providers. Our reduction in revenue guidance will also negatively impact adjusted EBITDA in the second half. Further, the acquisition of Solestial, which will bolster our supply chain certainty of solar cells, in the acquisition of ALL.SPACE. to expand our total addressable market will further impact adjusted EBITDA in the second half. And now I'll hand it back to Dirk for a quick summary. Dirk Wallinger: Thanks, Brian. So to conclude, the U.S. government has shifted their acquisition approach from a rapid succession of larger RFPs to an IDIQ approach that is slow to start, but faster to accelerate task orders later. This acquisition approach has shifted significant contributions to revenue on our $11.5 billion identified pipeline into the '27 time frame. We are winning opportunities with an 88% win rate and eight new contracts in 2026. We have added four more contracts this quarter with two task order wins and another IDIQ ad in the past 1.5 months alone. With our new wins, we have increased York's potential unawarded contracts which now exceeds $1.85 billion. York's very broad range of proven capabilities position us well and are aligned with anticipated budgets. We remain bullish on our ability to win across acquisition approaches, budgets and mission capabilities with our proven production and ability to deliver mission successfully. And now I'll hand it back to the operator for questions. Operator? Operator: [Operator Instructions] Your first question comes from the line of John Godyn with Citi. Unknown Analyst: This is Bradley Oster on for John Godyn. So I want to dial in on the government contracts you secured this year under the new acquisition approach. Could you just talk a little bit more about what your expectations are on the shape and potential size of these over the fullness of time as you convert them to like the larger operational programs? Dirk Wallinger: Sure. So I think the best indicator of what you can expect from size is probably the 27 Department award, sorry, the President's budget in the sense of like it's not going to provide the exact numbers, but it's going to give you an idea, right, of kind of generally how much are they looking to spend on Space Data Network? How much are they looking to spend on missile track missile warning, et cetera. So I think that's the best way to kind of look at what these OTAs could eventually lead to. Right now, the contract awards are going to -- are basically being -- coming off of '25 and '26 budgets. But like I said, the '27 gives you some idea of trajectory. Some of those wins were for the Space Data Network and so that's a pretty easy map to see kind of what the government is looking to spend on the Space Data Network in the coming years and that became public recently, like 10 minutes before this call. And we'll expand on that a little bit more with our own PR in the coming days as that becomes approved from the customer as well. But I think that's the best way to look at it. Unknown Analyst: Got it. I appreciate that color. And I just want to circle up on the $11.5 billion pipeline opportunities from the government contracts you're looking at today. Is this something that you can organically participate in today? Or would more potential M&A movements, a lot even bigger chunks of that pipeline for you guys? Dirk Wallinger: Yes. So right now, that pipeline is identified pipeline. So those are specific opportunities that we are pursuing with our capabilities today with no need for further acquisition or any type of M&A activity. So those are specifically identified opportunities. I think the earnings deck, I think, will be good in the sense of it can kind of formulate how much of those are commercial, how much of those are classified and how much of those are government nonclassified as well. So I think that might be a good reference to get an idea of where we sit, but there's no further acquisition required to pursue those opportunities. Operator: Your next question comes from the line of Seth Seifman with JPMorgan. Unknown Analyst: This is actually Alex on for Seth. So I wanted to ask, I mean, I think you guys kind of alluded to it a little bit in the prepared remarks, but last quarter, I think you talked about how 70% of your revenue you expected to be covered by your backlog for the rest of the year. But maybe just to put a finer point on kind of what's changed. I mean, if I take the Q2 sales result and the new implied second half sales guidance, it just seems to imply that the dollar value of the backlog that you guys expected to convert to sales this year is now lower. Curious -- I know you guys mentioned the supply chain, but curious if you could kind of help level set us there in terms of how much maybe the supply chain is contributing or if there's any kind of changed outlook in terms of how to think about how much backlog you can convert to sales this year. And obviously, there's also some added revenue from the acquisitions as well. So maybe if you can kind of just walk through those items a little bit more? Dirk Wallinger: Sure. Thanks, Alex. So I'll kind of give the 10,000-foot perspective and commentary, and then I'll hand it over to Brian for the more specifics. Look, generally, what's occurred is that there was more of a rapid succession of RFPs and 30% of that, we thought that we would be able to contribute to revenue in '26. But because of the way that revenue is recognized, right, essentially is a function of cost it's more linear. So when you win a satellite program, you'll -- or a big satellite constellation, we'll say, you'll recognize that revenue over the course of 3 years. So what it means is that you would need to have some wins in '26, and you would need to start recognizing that revenue. And like I said, about 30%. Brian, correct me if I'm wrong. About 30% of that was go-get. And so we've done very well. The team was tasked with go-get wins, which they did, right? Our win rate at 88% shows that we can win under any acquisition strategy. The challenge is just that all shifted to the right in the sense that they to the government, it was very important to put IDIQs in place, and it will be slower to start, which means less go-get for '26 for us, frankly. But they're definitely showing at this point a rapid acceleration now that they have those IDIQs in place, which is all in line with what we thought we would see. It just happened a little bit later than we would have liked. I'll hand it over to Brian for his remarks. Brian Frantz: Yes. Alex, I think that was a pretty good summary that Dirk gave us. The one thing I would add into that is we took the new business out as we described earlier and we continue to see some of the supply chain issues and that those amounts kind of pushed into 2027. That was part of the equation here. And then certainly, that's offset by what we're seeing from new revenues coming in from the acquisitions. But that's the kind of the color and the pieces between -- of all the different buckets there. Unknown Analyst: Got it. That's very helpful. And then maybe just digging more into kind of what the supply chain issues are. Is there any maybe color you guys can kind of help us with there? Dirk Wallinger: I think that we -- Brian, I think quantitatively, we can maybe give some insight there. I don't think we want to talk specifically about vendors there. Brian Frantz: Yes, that's right, Dirk. We shouldn't do that. But we're continuing to monitor it. We continue to work with those vendors to try to understand and move some of that forward if we possibly can. But as we were looking at the guidance change that we needed to do, we knew that at least this much needed to come out, and that's why we pushed it out into '27. Operator: Your next question comes from the line of David Strauss with Wells Fargo. Joshua Korn: This is Josh Korn on for David. I wanted to follow up on the news that came out earlier today that you alluded to in the first question around the space data network connectivity demo contract. I guess any color you could give on that? And sort of, I guess, in addition, any other changes to the opportunity set within space data network and how that's kind of evolved since the last call? Dirk Wallinger: Yes, sure, Josh. I'll kind of give you what I can. So it came out literally just before the call, I looked at it very quickly. And what I don't want to do is say something that can get us in trouble with our new customer, right? I definitely don't want to do that. So I can confirm that they were OTAs under Space Data Network. I'm kind of going from memory, so I don't want to go too far there. But they are for this space data network, which is really great to see. Obviously, we had felt and been assured by the government that there was going to be competition in this network. And obviously, this is a great indication that there absolutely is going to be competition in this network. They're looking for proven providers. That's the kind of providers that were under the selection in -- under these task orders. So it's very exciting for us to see. As you know, we were one of the builders of the transport layer. We've deployed a lot of those systems working today. And so we're in a very good position for this other kind of capability that they're looking for. I can't say too much beyond that just because I want to be careful that I'm not saying anything that I didn't. But I do anticipate that there will be more information about those released in the coming weeks. Operator: Your next question comes from the line of Sheila Kahyaoglu with Jefferies. Adam Samuelson: It's Adam Samuelson on for Sheila. I was hoping to -- given the cut to revenues, I know you don't give EBITDA guidance necessarily, but is there any way to help frame kind of how I think about the decremental margin on the lower revenue base. If I look at the second half guidance, the midpoint, you're kind of around the second quarter revenue rate is the second quarter EBITDA performance in the range of how you're thinking about the second half? Or is there incremental pressure because of the costs that come in with ALL.SPACE and the recent acquisitions? Dirk Wallinger: Chris, or Brian, I'm not sure where we are with kind of sharing guidance on the EBITDA. Brian Frantz: Yes, I can take that one. It's a couple of different pieces here. As I talked about in our -- in the prepared remarks, we do think the gross profit margin is going to hang in there around the mid-20% range. And so as you're thinking about that relative to EBITDA, certainly taking a factor around that time the reduction in revenue, I think that would get you directionally where you might want to be on the EBITDA side. Operator: Your next question comes from the line of Austin Moeller with Canaccord. Austin Moeller: Good afternoon. So I was just wondering if we could quantify how much of the guidance change in revenue push out into 2027 was associated with the later timing on contract awards from the IDIQs versus the satellites that are waiting on components to be sourced in the supply chain? And if we could talk specifically about what those satellite programs are and when they might be ready for delivery? Brian Frantz: Yes, I can take that. I mean certainly, between the supply chain pushing out as well as the new revenue, I mean, those things are about equal in terms of how they are. So it's more or less a push between the supply chain and the new revenue coming in. But we haven't provided any additional color on that at this point. Austin Moeller: Okay. And I understand that the gross margins are expected to remain pretty much in line in that mid-20s range for the back half of the year. As we get into early 2027 and some of these IDIQs start turning into production awards, should we be thinking about a similar or better ramp in the margins? Or how should we be thinking about that? Brian Frantz: At this point, with the contract award environment that Dirk was talking about and awards are coming out literally right before we get on to this call, I don't think we're prepared yet to start talking about where '27 margins would come in and nonetheless on the revenue side either. Operator: Your next question comes from the line of Ryan Koontz with Needham & Co. Ryan Koontz: I want to touch on a couple of the opportunities you mentioned that were not really new award related. You talked about your real-time delivery opportunity. I wanted to take a gauge on that. If you could comment. And then also with regards to the ALL.SPACE acquisition. Can you refresh us on what those use cases are and how you think about sales channels and relationships there going forward for the ALL.SPACE parts? Dirk Wallinger: Yes, sure. Can you offer more color on the first item? I got the second one is ALL.SPACE, but the... Ryan Koontz: You had talked about the opportunity to be a short-term response delivery to customers to government customers that they haven't had that luxury before. I know it was an opportunity you wanted to pursue. Maybe you can update us on those opportunities as you see them? Dirk Wallinger: Sure. Absolutely. So I would view this more as hey, how can an inventory potentially increased Pwin and increased delivery. So yes, we're proceeding forward. Part of the IPO was to raise some capital to support inventory. We're pretty far along in our production capacity and in the technology maturity. And so we're in the fortunate position that we can do inventory ahead. And so we've begun that process. The nice part is that as we are progressing through these IDIQs and task orders, we now can kind of bucket those into our inventory orders. And so we might -- now we're starting to have the ability where we're asked for a task order, our delivery time can be slightly shorter because we already ordered those materials. So we're definitely seeing the benefits as far as our delivery time line capability in contrast to some of our competitors who would need to start from scratch. So we're definitely seeing some upside there. We are definitely allocating from inventory already towards some of these programs that we've won. And then we can obviously choose to invest more on the back end of that inventory. So as far as recognizing scheduled delivery and also putting us in a good position to have good Pwin, the inventory capability has been extraordinarily helpful. And so that has been so far very successful. And so we're happy to see that, and we'll continue to support that. As far as the ALL.SPACE acquisition, look, we're on the other side now, which I'm very fortunate to say. It's a very amazing capability and very good demand. So we alluded to in the earnings deck that they're getting new contract wins now for more terminals. Those systems are starting to proliferate across the manned systems. But what I'm really interested in, and I talked to this a little bit earlier as well, is the unmanned proliferation. So I think there's -- at this point, no doubt at all that unmanned systems are going to play a giant part in the future of warfare and basically the future of everything. And so assured communications, i.e. communications that is not jammed like we're seeing in Ukraine and in Iran and everywhere else is going to be extraordinarily important. And that's really what that ALL.SPACE terminal enables is assured communication in denied environments and also GPS capability as well in denied environments. And that's really going to be the key to leveraging unmanned systems. So long way of saying they've continued to win new programs and new contracts, which obviously we're very happy about. And we're working now to start to integrate those across unmanned systems, which I think is has tremendous growth potential for us in the next 2- to 3-year time frame. Ryan Koontz: Got it. And is ALL.SPACE going to bring much backlog to the picture here? Dirk Wallinger: Brian, you can comment on that one. Brian Frantz: Yes. We've included -- actually, we've not included the ALL.SPACE backlog in our number because our number was as of June 30, but we'll be updating that into Q3. So there will be a small increase related to ALL.SPACE backlog when we report Q3. Operator: Our next question comes from the line of Noah Poponak with Goldman Sachs. Unknown Analyst: Good afternoon. This is Thomas ROZANN for Noah Poponak. In your slide deck, you highlight a few billion of identified commercial pipeline. Can you provide any detail on the types of mission sets those commercial customers are serving? Dirk Wallinger: Sure. So I will I will speak to it generally because a lot of the times, those commercial companies, in particular, are very particular about what specific that they are doing. So I'll talk about it very generally. But there's a wide range of capability there. One of the sample cases that could be worked or is in that pipeline is earth observation. Obviously, that fills a giant swath of capabilities, but there's visible imagery, their synthetic aperture radar imagery, there's infrared. And those are increasingly being demanded by the government to be bought commercially, but then also on the commercial side of things as well. And so that's obviously a tremendous growth area for us as we have capabilities in all those areas. Other areas that we're seeing are things that used to be government-provided capabilities that the government really at this point, no longer really needs to do anymore and could shift that to commercial. So as an example, right, so commercial services to the International Space Station used to be something that NASA and the government did. But as technology developed, it became apparent that we don't need to do this. We can buy this as a service in the commercial market. Now of that, you had SpaceX and Boeing win contracts to serve the ISS. That's a similar model to what I think we will see for future growth in the commercial side of things where there's things like more precise GPS capability is something that's being demanded by the government, but also very strong demand on the government side of things, and that can be converted to a commercial service. Other examples might be on things like weather is another area where that might have been performed by government agencies, and so that can definitely be done by commercial companies now. So there's kind of two buckets. One is your traditional earth observation, which that market has been continuing to grow for a long time. Government and commercial markets are good customers of those. And then the other bucket is things that historically were government capabilities, precise GPS, things like that, that we can see the government shifting into commercial markets as well and buying that as a service. So those are a few different examples. Apologies I can't get more specific. Unknown Analyst: No, I understand. That's helpful. How should we think about the margin profile for these commercial customers? Is it largely similar to what you outlined during the Analyst Day? Or what drives the difference there? Dirk Wallinger: I think it's largely similar, but Brian, I don't know if you wanted to add more context otherwise I can... Brian Frantz: Yes. I mean it's a little bit lower than what we see on some of the government ones, but I don't know that it'd be enough, particularly in the overall revenue mix to call it out that much. Operator: There are no further questions at this time. I will now turn the call back to Dirk Wallinger for closing remarks. Dirk Wallinger: Yes. So I just wanted to thank everyone for taking the time to hear the story. I look forward to speaking with you all next quarter. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in York Space Systems, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and York Space Systems wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $432,621!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,314!* Now, it’s worth noting Stock Advisor’s total average return is 973% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 20, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends York Space Systems. The Motley Fool has a disclosure policy. York Space Systems (YSS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in York Space Systems Inc.? Here are five stocks we like better. Second-quarter revenue rose 10% to $92.5 million, while gross margin improved to 24% from 11% a year earlier. However, higher operating expenses kept adjusted EBITDA at a $9.5 million loss. York cut its 2026 revenue guidance to $375 million–$405 million from a prior midpoint of $570 million, citing delays from the government’s shift to IDIQ contracting and supply-chain issues that are deferring revenue into 2027. The company ended June with $592 million in backlog and $684 million in liquidity, while recent Solestial and ALL.SPACE acquisitions broadened its space-solar and communications capabilities. York expects its subsidiaries to contribute 10%–15% of 2026 revenue. York Space Systems (NYSE:YSS) reported second-quarter revenue growth and improved margins while lowering its full-year revenue outlook, citing a shift in government procurement toward IDIQ contracts and supply-chain delays that are pushing some revenue into 2027. Revenue for the second quarter of 2026 was $92.5 million, up 10% from the prior-year period. Chief Accounting Officer and interim CFO Brian Frantz said the increase was driven primarily by acquisitions completed during the second half of 2025 and first half of 2026, along with a new commercial contract announced earlier this year. Revenue from the company’s major government programs was relatively flat year over year. → Lumentum Just Delivered the AI Growth Investors Wanted The company revised its 2026 revenue guidance to a range of $375 million to $405 million, compared with a prior midpoint of $570 million. The new midpoint of $390 million is $180 million below the previous midpoint. CEO Dirk Wallinger said the U.S. government has shifted from issuing a rapid succession of larger requests for proposals toward an IDIQ, or indefinite-delivery, indefinite-quantity, acquisition model. While initial IDIQ awards may take longer, he said task orders can be issued more quickly once the contract vehicles are in place. → Ryman Checks Into a $1.38B Hospitality Upgrade Frantz said roughly 30% of the prior revenue-guidance midpoint had depended on new business. York removed that anticipated new business from its outlook for the remainder of 2026 because of the changed award environment. He added that supply-chain issues are also delaying revenue into 2027, partly offset by revenue contributions from recent acquisitions. During the question-and-answer session, Frantz said the impact from supply-chain delays and the removal of expected new revenue were “about equal” in the guidance revision. The company did not identify specific suppliers or satellite programs affected by the supply-chain issues. → Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal Wallinger said York has won eight contracts in 2026, with an 88% proposal win rate. He said the company expects the newer IDIQ awards to support growth in 2027 as follow-on task orders and larger operational programs advance. As of June 30, York’s backlog was $592 million, down 8% sequentially from $642 million at the end of the first quarter but up 9% from the beginning of the year. The company reported potential unawarded contracts of $1.85 billion and an identified pipeline exceeding $11.5 billion. Wallinger said the identified pipeline consists of specific opportunities York can pursue with its current capabilities and does not require additional acquisitions. Second-quarter gross margin was 24%, compared with 11% in the prior-year quarter, which had been affected by an estimate-at-completion adjustment. Gross profit rose to $22.2 million from $9.5 million a year earlier. Contribution margin expanded 18 percentage points to 42%, while contribution margin dollars nearly doubled to $39.3 million from $20.3 million. Frantz attributed the improvement to a more favorable mix of newer programs, which he said generally carry higher margins, and to the transition of the Tranche 1 Transport Layer program into post-launch operations and support work. York expects gross margin to remain in the mid-20% range for the balance of 2026. Frantz said the company was not prepared to provide outlook details for 2027 revenue or margins. SG&A and research-and-development expenses rose 52% year over year, reflecting higher headcount, costs associated with being a public company, and expenses from acquisitions including ATLAS, Orbion and Solestial. Frantz said most of York’s public-company infrastructure buildout is complete, although expenses will rise in the second half following the July acquisition of ALL.SPACE. Adjusted EBITDA was a loss of $9.5 million, compared with a loss of $8.9 million in the prior-year period, as increased operating expenses offset higher gross-margin profitability. Frantz said lower revenue guidance and the Solestial and ALL.SPACE acquisitions will further pressure adjusted EBITDA in the second half. York ended the quarter with $534 million in cash and cash equivalents and a fully available $150 million revolving credit facility, for total liquidity of $684 million. The company used $155 million of cash after quarter-end to complete its ALL.SPACE acquisition. York launched 21 satellites during the quarter on a dedicated Falcon 9 mission, completing deliveries for the Tranche 1 Transport Layer program. Wallinger said York has now launched 55 satellites across eight launches and has deployed 42 Tranche 1 Transport Layer satellites, all of which are in orbit and healthy. The company said it is operating five mission sets and three constellations. York also said its Nemesis mission completed its Delta Critical Design Review and remains on track for fourth-quarter delivery, while the Dragoon program completed its initial mission objectives. York completed acquisitions of Solestial, a provider of space solar technology, and ALL.SPACE, a supplier of assured communications terminals. Wallinger said Solestial gives York domestic control of a supply-chain element that is currently controlled by China, while ALL.SPACE expands the company’s presence in communications terminals for manned and unmanned systems. ALL.SPACE has contracts with the U.S. Army and Navy, as well as a new Defense Innovation Unit contract and a $6 million Navy follow-on order for 23 additional terminals, according to Wallinger. York expects ALL.SPACE and its other subsidiaries to contribute about 10% to 15% of 2026 revenue. ALL.SPACE backlog was not included in York’s June 30 backlog figure and will be reflected in the company’s third-quarter update, Frantz said. York was also selected in July for the U.S. Space Force’s NITE-STAR IDIQ, which enables it to compete for task orders involving satellite platforms and the ground network operated by its ATLAS Space Operations subsidiary. York Space Systems is a leading, U.S.-based, space and defense prime(1) providing a comprehensive suite of mission-critical solutions for national security, government and commercial customers. York is one of the only space and defense primes with proprietary hardware and software capabilities designed to address customers' complex mission requirements across the critical elements of the entire space ecosystem throughout the mission lifecycle. York is the number one provider to the U.S. Department of Defense's (“DoD”) Proliferated Warfighter Space Architecture (“PWSA”) by number of spacecraft operating in-orbit, by number of contracts, and by variety of contract types as of September 2025. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "York Space Systems Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Significant Backlog Potential Growth on Eight Contract Wins at 88% Win Rate Year-to-Date DENVER, August 13, 2026--(BUSINESS WIRE)--York Space Systems Inc. (NYSE: YSS) (York) today announced financial results for the quarter ended June 30, 2026. * See definition and reconciliation of Adjusted EBITDA to net loss under "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Measures." "York had another strong quarter of execution," said Dirk Wallinger, CEO of York. "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. Our second T1TL launch added another 21 satellites into operation this quarter, and the newer programs we’re winning are structured to open the door to significantly larger follow-on opportunities in 2027. The ALL.SPACE acquisition extends our reach further into assured communications and the growing demand for unmanned systems driven by the changing character of conflict. With a backlog of $592 million and potential on awarded contracts reaching $1.85 billion, and an identified pipeline now exceeding $11.5 billion, the opportunity in front of us is substantial. "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. This approach has a longer cycle to award the IDIQs, but once IDIQs are awarded, Task Orders can be awarded in more rapid succession without the need for follow-on competitive award cycles," Wallinger added. Under this model, smaller initial awards to proven providers can serve as gateways to multi-billion-dollar operational programs that can be executed more quickly later given the contracts have already been awarded. York has been awarded six contracts under this new approach in 2026 alone, and the company believes they can be significant drivers of growth into 2027 as the follow-on programs advance. Brian Frantz, interim CFO and CAO of York, said, "Our newer programs are driving strong profitability improvements, and we continue to successfully win a large rate of the contracts available to us as we wait on the government to make progress against the larger programs in the budget. As a result, we are bringing down our full year 2026 revenue guidance. That said, the contracts we’ve secured this year under the new acquisition approach are the onboarding positions that we expect to convert to significantly larger operational programs, and we expect them to be meaningful drivers of growth in 2027 and beyond." Second quarter 2026 Company Results Revenue increased $8.7 million, or 10%, to $92.5 million. This increase was 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. Backlog stood at $592.0 million on June 30, down 8% from $642.3 million on March 31, and up 9% from the start of the year. Selected Second Quarter Highlights Year-to-date, York has 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. In July, York was awarded a Task Order contract on one of our highly selective IDIQs, to deliver military system capabilities built on commercial technologies. And in early August, York was awarded another Task Order for an on-orbit demonstration. This highlights the rapid conversion from IDIQ selection to multiple funded delivery order contracts in a matter of weeks. In July, York was selected by USSF for the NITE-STAR IDIQ, further extending York’s mission portfolio capabilities. The award positions York to compete for task orders integrating the company’s satellite platforms with the global ground network operated by ATLAS Space Operations, a wholly owned subsidiary of York. 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, ahead of every other awardee. In July, York completed its acquisition of ALL.SPACE, a leader in assured communications terminals, extending York’s reach into adjacent markets and position the company to capture the accelerating demand for unmanned systems across domains. ALL.SPACE brings established contracts with the Army and Navy including a new Defense Innovation Unit contract and a $6M follow-on order from the Navy, both awarded in Q3. York’s Nemesis mission cleared its Delta Critical Design Review and remains on track for spacecraft delivery in Q4, extending York’s prime integration model into GEO in support of Space Domain Awareness missions and reinforces the company’s ability to prime, integrate, and deliver across orbital regimes. York completed its acquisition of Solestial, Inc., a leading provider of next-generation space solar technology. The acquisition secures domestic control of a critical element of York’s supply chain, currently controlled by China, reduces geopolitical exposure across the company’s manufacturing base, and positions York to leverage advanced solar capabilities as a differentiator in future spacecraft designs. York completed its initial Dragoon mission objectives in a matter of months, demonstrating York’s ability to deliver operationally relevant tactical communications at speed and scale. Liquidity 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. Business outlook as of August 13, 2026 York Space Systems expects revenue for the full year 2026 to be in the range of $375 million to $405 million. The 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. We are working on a pipeline of government opportunities worth $11.5 billion, across 12 potential customers. This analysis considers the next two years, and we only included opportunities from potential customers we have spoken to directly. Business outlook is based on information as of today, August 13, 2026, and may be impacted by factors outside York’s control. See "Forward Looking Statements." Conference Call York will host a conference call to review its financial results for the fiscal quarter and full year 2025 and its outlook for the future and may disclose other material developments affecting its business and/or financial performance. Listeners may access the conference call live via audio webcast. Thursday August 13, 2026 3:00 pm Mountain Time (5:00 pm Eastern Time) Webcast: https://events.q4inc.com/attendee/324017794 York’s financial results release will be available after the close of market on August 13, 2026 on York’s website at http://ir.yorkspacesystems.com. An audio webcast replay of the conference call will be available for one year at http://ir.yorkspacesystems.com. About York Space Systems York Space Systems (NYSE: YSS) is a leading, U.S.-based national defense and commercial prime providing a comprehensive suite of mission-critical solutions for national security, government, and commercial customers. York is one of the only space and defense primes with proprietary hardware and software capabilities designed to address customers’ complex mission requirements across the critical elements of the entire space ecosystem throughout the mission lifecycle. York is purpose built to address evolving national security space challenges and to adapt to the ongoing shift in the U.S. government’s mission needs and procurement processes. Forward-Looking Statements This press release and the related conference call contain "forward-looking statements" within the meaning of, and we intend such forward-looking statements to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "objective," "ongoing," "plan," "predict," "project," "potential," "should," "will," "would," or the negative of these terms or other comparable terminology. In particular, statements about our 2026 outlook, future growth prospects, anticipated award times, pipeline, award opportunities, backlog, backlog opportunities, growth of market share, growth strategy, capabilities, the future health of our aircraft, expectations regarding government programs and actions, benefits expected from the acquisitions of Solestial Space Technology, Inc. and ALL.SPACE Holdings, Inc., the markets in which we operate, including growth of our various markets, potential new products and product innovation and our expectations, beliefs, plans, strategies, objectives, prospects, assumptions, or future events or performance contained in this press release and made during the related conference call, are forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include: disruptions in U.S. government operations and funding and budgetary priorities of the U.S. government; limitations on investor insight into portions of our business due to our classified contracts with the U.S. government; our failure to establish and maintain important relationships with government agencies and prime contractors; the potential inability to realize our backlog; difficulties or disruptions in consummating future acquisitions and integrating the operations of acquired companies into our business, and in realizing the expected benefits of these transactions, including with respect to Solestial and ALL.SPACE; cost overruns on our contracts, including before final receipt of a contract; concentration of our customers and backlog, in particular our largest customer, the Space Development Agency; our failure to implement and maintain an effective system of internal control over financial reporting; fluctuation of our operating results; significant competition in the global space and satellite market; our failure to manage our growth effectively and our ability to achieve and maintain profitability; any failure of our spacecraft systems and related software to operate as intended, resulting in warranty claims for product failures, schedule delays or other problems with existing or new products; our revenue, results of operations and reputation may be negatively impacted if our products contain defects or fail to operate in the expected manner; our dependence on contracts entered into in the ordinary course of business and our dependence on major customers and vendors; the scarcity or unavailability of critical components used to manufacture our products or used in our development programs; the emerging and shifting nature of the market for spacecraft platforms and satellite software and its failure to achieve the growth potential we expect; uncertain global macro-economic and political conditions, including the implementation of tariffs and supply chain risks; a failure of our information technology systems, physical or electronic security protections; the failure to adequately protect our proprietary intellectual property rights; the inability to comply with any of our contracts or meet eligibility requirements to obtain certain government contracts; government laws and regulations, particularly those relating to contracting in the defense industry; our substantial indebtedness; and the other factors set forth in our filings with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release and the related conference call. Actual results may vary from the estimates provided. We undertake no intent or obligation to publicly update or revise any of the estimates and other forward-looking statements made in this press release, whether as a result of new information, future events or otherwise, except as required by law. Non-GAAP Financial Measures We believe that in addition to our results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), our non-GAAP financial measures including contribution margin, contribution margin %, EBITDA, and Adjusted EBITDA provide useful information to management, investors, and analysts in assessing our financial performance and results of operations across reporting periods by excluding items we do not believe are indicative of our core operating performance. In addition to our GAAP measures, we use these non-GAAP financial measures to evaluate our operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources, including budgeting for infrastructure. These non-GAAP financial measures are used to supplement the financial information presented on a GAAP basis and should not be considered in isolation or as a substitute for the relevant GAAP measures and should be read in conjunction with information presented on a GAAP basis. Because not all companies use identical calculations, our presentation of non-GAAP measures may not be comparable to other similarly titled measures of other companies. Non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact on our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which items are adjusted to calculate our non-GAAP financial measures. We compensate for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in our public disclosures. Contribution Margin We refer to revenue less direct material costs of revenue as "contribution margin" and contribution margin divided by revenue as "contribution margin %." The closest comparable GAAP financial measures to contribution margin and contribution margin % are gross profit and gross profit margin %, respectively. We believe contribution margin and contribution margin % are useful measures of the variable costs that we incur in order to provide services to our customers. Our presentation of contribution margin and contribution margin % should not be construed as an inference that our future results will be unaffected by variable costs. EBITDA and Adjusted EBITDA We define EBITDA as net income (loss) adjusted for interest expense, interest income, income tax benefit, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for changes in the fair value of derivatives, loss on debt extinguishment, transaction costs, and other non-recurring items. Net loss is the most directly comparable GAAP measure to Adjusted EBITDA. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, see the "Reconciliation of GAAP to Non-GAAP Results" table in this press release. Backlog We view backlog as a key measure of our business growth. Backlog represents our estimate of the revenue we expect to realize in future periods as a result of performing work on contracts that have been awarded to us (net of any revenue already recognized as of the backlog date). We include the aggregate expected revenue of awarded contracts in our backlog upon the execution of a legally binding agreement, even though our contracts include certain termination rights exercisable by our customers with advance notice. We exclude unexercised contract options from our backlog. Contract liabilities recognized on our consolidated balance sheets consists of payments and billings that we have received in excess of revenue that we have recognized. Because cash receipts from these contracts have not been recognized into revenue, they are included in our backlog calculation. We monitor our backlog because we believe it is a forward-looking indicator of potential sales which can be helpful to investors in evaluating the performance of our business and identifying trends over time. Although backlog reflects business associated with contracts that are considered to be firm, terminations, amendments, or contract cancellations may occur, which could result in a reduction in our total backlog and potential future revenue that is never recognized. View source version on businesswire.com: https://www.businesswire.com/news/home/20260812603626/en/ Contacts Investor Contact Christopher [email protected] Media Contact Sarah [email protected]

Image source: The Motley Fool. Thursday, May 14, 2026 at 5 p.m. ET Chief Executive Officer — Dirk Wallinger Chief Financial Officer — Kevin Messerle Investor Relations — Christopher Evenden Need a quote from a Motley Fool analyst? Email [email protected] Christopher Evenden: Hello, everyone, and welcome to York Space Systems' Q1 2026 earnings call. With me on the line are Dirk Wallinger, our CEO, and Kevin Messerle, our CFO. Please note that our earnings press release is available at ir.yorkspacesystems.com. In addition, we have posted an earnings presentation to accompany our prepared remarks on the same website. Lastly, after the call, we will post a transcript of our prepared remarks and an audio replay of this call. For those listening to the rebroadcast of this call, we remind you that the remarks made herein are as of today, Thursday, 14th May 2026, and have not been updated subsequent to this call. During this call, we will refer to certain non-GAAP measures. A reconciliation of these measures to the most directly comparable GAAP measures can be found in our earnings press release. We will also make statements that are considered forward-looking, including those related to our 2026 outlook, future revenue, growth prospects, backlog, growth of market share and addressable market, M&A strategy, inventory building, and the benefits of the acquisitions of Orbion and ALL.SPACE. Listeners are cautioned that our forward-looking statements involve certain assumptions and are inherently subject to risks and uncertainties that can cause our actual results to differ materially from our current expectations. We advise listeners to review the risk factors and other discussions included in our 2025 annual report on Form 10-K, the Q1 Form 10-Q, and our other filings with the SEC. After the completion of our prepared remarks, we will open the call for questions. Now, I'll turn the call over to Dirk. Dirk Wallinger: Hello, welcome to York's Q1 2026 earnings call. I appreciate you taking the time to join us. Q1 marked a strong and focused start to the year, reflecting disciplined execution against our strategic priorities and the momentum established through our successful January IPO. We delivered revenue of $116 million, up 9% year-on-year, while also adding meaningful commercial and government awards in the quarter, strengthening our backlog and positioning us for continued growth. We also advanced key strategic initiatives, including the acquisition of Orbion to enhance vertical integration and production delivery times and early steps to build out our inventory in support of future demand. In February, we finalized a $187 million commercial contract for a 20-plus satellite constellation built on the M-CLASS platform with a clear pathway for additional orders as the customer continues to build out its constellation. We have since completed our kickoff with the customer and begun early design work. We expect significant revenue contribution from this program in 2027. In March, we shared that York won multiple IDIQ awards supporting next-generation national security space architectures. These awards reinforce the continued confidence government customers place in York's mature production line. The IDIQs will support the development and deployment of critical national defense and war-fighting space capabilities, including systems relevant to emerging highly integrated systems that contribute to missions like Golden Dome. We expect task order issuances on the awarded contracts in the near term and are well-positioned to compete, win, and execute on such orders. We also saw continued growth with our civil government customers, including NASA, where we secured an extension to the PEX contract through 2027. We are seeing strong new business activity across government, classified, and commercial markets, our business development team is fully engaged and at full capacity across this pipeline. Turning to capital allocation, the IPO has expanded our ability to invest in advancing our first-mover advantage. We have scaled our business development organization, adding capabilities across key markets, including Washington, D.C., Colorado, California, and Florida. In parallel, we are investing in inventory, initiating the build-out of the first 20 satellite platforms, allowing us to potentially reduce time to orbit by up to 75% to meet the rapid delivery demand signals from the market. The IPO also enabled us to accelerate our M&A strategy, which we are executing with the acquisition of Orbion Space Technology in Q1 and the signing of ALL.SPACE in April. As I highlighted in our last earnings call, Orbion strengthens our supply chain control and further integrates critical systems with flight-proven technology. We are seeing strong alignment and execution across the York and Orbion teams and are enthusiastic about the ability to contribute to accelerating our delivery timelines while operating successfully as a wholly-owned subsidiary. ALL.SPACE develops and manufactures next-generation, robust, jam-resistant, multi-band mobile tactical terminals for satellite communications. Their Hydra Terminal systems provide resilient network-agnostic communications on the move, enabling reliable connectivity across space, air, land, and maritime domains designed specifically to ensure connectivity is maintained in dynamic and contested environments. With this acquisition, York expects to advance its strategy to build and complete communication ecosystems operating in contested environments across the commercial and government networks. It will also further position us to expand into adjacent high-growth addressable markets, particularly the rapidly growing unmanned systems market, by leveraging our space-based network. Together, York and ALL.SPACE bring complementary proven capabilities to enable real-time access to critical information and improve awareness, coordination, and mission execution across distributed operations. ALL.SPACE brings an established and highly credible platform with a track record of execution across critical defense programs and a strong base of existing customers. Upon closing, the business will continue to operate as a wholly-owned subsidiary, maintaining its focus and agility while contributing to York's broader strategic objectives. ALL.SPACE has demonstrated success supporting the U.S. Army and U.S. Navy, including through the Next Generation Tactical Terminal and satellite terminal non-geostationary programs, reinforcing its position as a trusted provider of resilient communication solutions. These relationships not only validate the strength of the platform, but also expand York's opportunity to deepen engagement across key defense customers. We see significant opportunity to scale into the mobile manned and rapidly growing unmanned systems market through our combined space-based network and mobile ground terminals, where demand for resilient on-the-move connectivity is accelerating. As we have seen in current conflicts, assured connectivity in contested environments continues to present significant challenges. ALL.SPACE is a leader in providing multi-band assured communication in contested environments. This acquisition positions us well to capitalize on that opportunity, particularly as evolving geopolitical dynamics continue to drive increased reliance on unmanned and distributed systems in contested environments. The acquisition is expected to close in the third quarter, subject to regulatory approvals. Looking ahead, we will continue to pursue strategic acquisitions across 2 primary lanes: assuring supply chain and vertical integration, and leveraging our space domain expertise to continue to expand into rapidly growing adjacent markets, further growing our TAM. Let me close by reinforcing that York is well-positioned as we move into the H2 of 2026. We are deliberately investing to build inventory and reduce delivery timelines by up to 75%, expanding portfolio capabilities like the ATLAS ground network, and continuing to expand our broad customer base. At the same time, we are leveraging our capital to execute a disciplined M&A strategy to strengthen our ability to deliver at speed, cost, and scale, while also expanding our total addressable market by leveraging our space expertise to expand in adjacent high-growth segments. Together, these efforts position York to capture significant opportunities emerging across an increasingly dynamic and contested global landscape. With that, I'll hand the call over to Kevin. Kevin Messerle: Thanks, Dirk. As Dirk discussed, 2026 is set to be a transformational year for us, with our January IPO opening several new avenues of growth. Revenue for the quarter was ahead of our expectations at $116.3 million, up $10.1 million or 9% on the prior year. The increase was primarily driven by growth in our major government programs, offset by a strong performance in Q1 last year as we accelerated production of our first 21 Tranche 1 Transport Layer communication satellites ahead of their launch last September. Gross margin, which includes allocated labor, overheads, and D&A, was 19%, down 4 percentage points year on year, driven by the net impact of certain EAC adjustments, which were a tailwind last year and a headwind this year, and a non-recurring depreciation expense this year. Gross margin dollars were $22.2 million in the quarter, down slightly from $24.6 million in the year-ago quarter, driven by the items I just mentioned, offset by higher revenues. Contribution margin grew 1 percentage point to 34% in the Q1, driven by a richer mix of our newer vintage programs, which tend to have higher margins than our older vintage programs. Contribution margin dollars grew to $40.1 million from $35.3 million last year, driven by the aforementioned mix and higher overall revenues. Turning to operating expenses, SG&A plus R&D expenses increased 35% year-over-year. This was primarily driven by an increase in overall headcount at York, increases in overhead related to public company uplift, and incremental salaries and costs related to the acquisitions of ATLAS in August 2025 and Orbion in March 2026. As a result, adjusted EBITDA for the quarter was negative $3.6 million compared to $5.5 million last year. With regards to liquidity, as of 31 March 2026, our cash and cash equivalents were $655.7 million, and availability under our revolving facility was $150 million for total liquidity of $805.7 million. Loss per share was $1.51 per quarter. Approximately $1.07 of this is due to two substantial non-recurring non-cash charges associated with the IPO. Capital expenditures for Q1 2026 were $2.1 million as compared to $1.2 million in the year ago quarter. Backlog has increased 18% to $642.3 million at quarter end from $542.6 million at 31 December 2025, driven by the commercial win we announced in March, partially offset by revenue recognized in the quarter. Looking ahead, we expect revenue for the year to be in the range of $545 million to $595 million, up 48% year-over-year at the midpoint. This is unchanged from our previous guidance. The recent changes at SDA have not reduced our nation's need for communications in contested environments. We continue to compete for that business based on the strengths we've shown in the past. With regards to Q2 in particular, I would note that we are experiencing delays in supply of certain components that will push a portion of revenue associated with those costs into the H2 of the year. We believe these near-term headwinds are balanced by the unprecedented bid activity in other areas, netting out to an unchanged forecast for the full year. Now I'll hand it back over to the operator for questions. Operator? Operator: Thank you. We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question, and if you're muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Peter Arment from Baird. Your line is open. Please go ahead. Peter Arment: Hey, thanks. Good afternoon, Dirk, Kevin, Chris. Thanks for your time. Hey, hey, Dirk. Thank you're in a position to kind of clear things up and help, I guess, investors try to understand a lot of the moving parts that have really been going on in the Space Development Agency. You know, since justification books have come out and there's been a lot kind of thrown out there, how do you view kind of the positioning, if anything's changed for you? Just maybe if you could just. I know some of this, obviously a lot of this is restricted and classified, but what you can give us kind of at a high level on how you're viewing it. Thanks. Dirk Wallinger: Sure thing. Sure thing. Good to hear from you, Peter. Appreciate the question. Yeah, I mean, it presents a real opportunity for us to clarify a lot, 'cause since, quite frankly, I mean, there's a little bit of confusion out there, right? You know, last earnings call, I think you'll recall that there were some questions about Transport Layer and how that might relate to Space Data Network. In that call, we suggested that, or I suggested that more than likely what we expected to see is that the Transport Layer capabilities, right, you know, the ability to support the warfighter in theater and in domain was an enduring need. Independent of what the agency, you know, what agency or where that, you know, kind of need fell under that, it would endure and would continue. We're happy to see that's pretty much exactly what happened. The transport kind of capability where, you know, you have this assured communications, and you're gonna able to provide that directly to the warfighter, right? Is a capability that continues to exist, and we're seeing that rolled into the Space Data Network. There's a lot of confusion. You know, I've talked to the government about this and they acknowledge this, and they're doing a lot of work to clarify. There's a lot of confusion because, you know, last year or the year before, you're hearing a lot of things about MILNET, things like that, right? What they're doing though is exactly what I said. They're bringing all the different kinds of capabilities that you need from military commercial solution, and they're gonna put it under one architecture, and that architecture is called the Space Data Network. I think because before there was an assumption that SpaceX, you know, was sole source MILNET, people believed that was, you know, gonna perpetuate and that all of Space Data Network would become, quote-unquote, "MILNET," and that's just not accurate. You see that reflected in the budget. You know, if you look at the 2027 Department of War mandatory budget, you see some line items, and you definitely see a Space Data Network backbone at, you know, roughly $3 billion. What you also see is Space Data Network backbone, quote, "multiple vendor procurement." That's a separate line item from Space Data Network, which means this is for other vendors to compete for that backbone. Obviously, that's very encouraging to see a specific line item specifically for competition at $800 million. Congress has also been really supportive of more competition and understanding that's critical to having a strong industrial base in the U.S. If that continues, we believe, York believes there's opportunity for material expansion into the $685 million for Space Data Network mesh and ground architectures. With those two alone, you're looking at about, York's opportunity at about $1.5 billion. To put that into context, when we were looking at budgets before, you know, earlier kind of end part of last year, you'd see, you know, $200 million, $400 million, as high as $500 million for transport. What we're seeing now is that in the new architecture under Space Data Network, we're seeing that opportunity more than tripled. Obviously that's all, you know, very promising for us. We're very encouraged to see that. We like to see budgets for things where we are a key contributor triple, so that's great. Another thing to add is there also seems to be a little bit of confusion on kind of where York fits in the ecosystem and what our capabilities are. Obviously, for obvious reasons, there's a lot of focus on Transport because it was an unclassified program for the most part, as far as, you know, what it was asked to do. But we're seeing now that, there's very large budgets elsewhere. That's why I'm pointing to our other capabilities because, you know, right now we are under contract for seven different mission sets that are not Space Data Network. Right now we are executing advanced fire control, Moving Target Indicator, remote proximity operations, tracking data relay, advanced waveforms, weather, and IDS, right? Those are all capabilities across the entire ecosystem, from classified programs over to Golden Dome programs, right? When you look at the capabilities York has, obviously we have tremendous capabilities in SDN. Seeing that budget triple is phenomenal. If you look at the classified side, we estimate the classified budget to be about $20.9 billion. It does have some overlap with the $17.5 billion for Golden Dome. Right now, we're tracking dozens of specific opportunities across 5 different classified mission areas. We also estimate our total opportunity is roughly about $16.3 billion. We obviously feel we're well positioned for the unclassified $8 billion allocated to Moving Target Indication. When you're looking at the $20 billion for classified, $17 billion for Golden Dome, York looks like we have a targeted area of about $16 billion for work that we can do. That's why those other mission sets matter so much, is because we're the incumbent on a lot of those mission capabilities. Peter Arment: That is really helpful and I think it'll be very much appreciated. Maybe just a quick follow-up. Kevin, you mentioned kind of there's no change in this year's annual guidance, but you did said things are shifting around. Could you just give it a little color what the supply chain issue is for Q2 or is it just a timing thing? Kevin Messerle: Yeah. Hey, Peter. Good, good question. Yeah, so just to reiterate, we are reaffirming our prior guidance of $545 million to $595 million. What I mentioned in the prepared remarks is that we think a little bit of our Q2 revenue that we were planning to hit in Q2 will just be delayed into Q3, likely Q3, potentially some of that into Q4. It's all a timing thing. It doesn't change the, you know, the overall trajectory for the year. It is related to, you know, I would say a handful of suppliers. You know, I don't wanna, I don't wanna publicly announce, you know, or who that might be. You know, we're obviously, you know, we value our supply chain. Look, they're working on some challenging things for us in some instances. That's what's causing that, right? 'Cause we recognize revenue on a percentage of completion. Some of the development and the production status on certain of our purchase orders gets a little bit delayed. All that means is that revenue just kind of moves a little bit to the right in the year. I would say directionally, Peter, you know, one way to look at it, you know, although we don't guide quarterly revenue, you know, we anticipate Q2 2026 could be roughly flat year-over-year from Q2 2025. Again, just a little bit of softness there, but it's all just kind of moving to the right. Peter Arment: Thanks, gentlemen. Very helpful color. I'll jump back in queue. Operator: Your next question comes from the line of Austin Moeller from Canaccord Genuity. Your line is open. Please go ahead. Austin Moeller: Hi, good afternoon, Dirk and Kevin. First, could you just provide a little bit more color on the national security IDIQs? I think you hinted that it's somewhat related to Golden Dome or potentially, the Space Data Network solicitations in the J book. Would love any more detail on that. Dirk Wallinger: Yeah, no, I appreciate that. Yeah, there's, you know, IDIQs are to a lot of other folks, you know, it's good for us to clarify that a little bit. There was some confusion that, you know, we kinda understood a little bit in the sense of there are a couple IDIQs that are for Golden Dome. They're on the unclassified side of things, you know, there's a lot of people on them, right? It's, you know, 20, 40 people, I think 100 or something like that, in one case. People were confusing that with the IDIQs I was talking about. Now to be clear, we are on those other IDIQs, we're awardees there too, but we made no announcement about that. The two that I was referencing are basically they're both for national security needs, so I'm not allowed to talk about the actual kind of mission set, but they were very selective. That's why we were excited about it, and that's why you heard me mention it last earnings call, and there was a press release as well, is because they were extraordinarily selective about who they awarded to. It was a very small handful on both of those IDIQs. All the awardees on there were, you know, basically had a long storied history of successful execution in orbit and have the ability to produce at scale. Both of those IDIQs, while I can't name what the mission sets are, I can say that they are both operational mission sets, meaning that they are for capabilities the government fields right now, in very large quantities. Being onboarded to both those IDIQs is obviously very exciting because it goes along the lines of we can see now the overall theme of what the government has been doing is there's been a lot of frustration with, you know, what's going on with Golden Dome, what's going on with Space Data Network, et cetera. We can see now that what the government is doing has been putting contract vehicles in place with the vendors they think that can actually perform on these contracts and actually execute. That takes a lot of work for the government. That's still an area where we're not as fast as we probably need to be. They've been working the last couple quarters to get these contract awards in place. I, you know, anticipate a large series of task orders coming out on both those IDIQs over the next couple months. I can say that, you know, our business development team has been very busy responding to task order requests. We've actually signed off on doubling our classified space, facility space as well. Very exciting because they're operational missions. They were for a handful of people, not the hundreds that were on the unclassified IDIQ. Austin Moeller: Okay. You already discussed this at length, I guess just to reiterate, if you can, you would think that on future contracts or program solicitations for Space Data Network, MILNET, et cetera, Transport Layer, that it would be quite unusual for the Space Force, given their model for all the other contract vehicles they have, to sole source to a single vendor for anything, just given its reduction of competitiveness and you don't have a redundant second supplier. Dirk Wallinger: This is my perspective and opinion, so take it for that. I'm in no way speaking on behalf of the government. I think there's kind of two gears going on. One is. Look, we have an immediate need for capability in this country. I think that, you know, given events over the past couple of months, you know, it's only really highlighted that. I do think that, look, if they've been working with suppliers and they've been producing successfully, they're gonna continue to do that. You don't wanna give up on a great supplier and just suddenly shift gears. I do think there's a lot of congressional support and frankly support on the military side of things too that, you know, we need to have a strong industrial base, which means that we need to have multiple suppliers. I wouldn't take it so far to say that they'll never sole source anything. I think it probably looks more like, "Hey, let's continue to do the things that we're doing that are working. Look, we have a lot of dollars here. Congress has been very supportive of multiple suppliers, so let's try and on-ramp other companies to produce at scale and see what they can do as well." I think it's more like that. I don't think it's quite as discrete. It's more of, you know, 2026 and 2027 and 2028 look like, "Let's get these companies from producing hundreds to producing thousands, and let's invest in multiple suppliers. Austin Moeller: That's really helpful. Thanks for the details. Dirk Wallinger: Yeah. Well, I'll add one more comment. You know, stuff like, you know, there was some Starlink terminals that were referenced in the budget. You know, like, yeah, do you need Starlink terminals to work with Starlink? Yes. That's probably a sole source for that one. That was, you know, $25 million of over, I think $3.8 billion when you include launch. I think that's a good example of, look, we'll continue to use things that work. We will only want to expand. Austin Moeller: You have ALL.SPACE terminals now, right? Dirk Wallinger: What was that? Austin Moeller: You have flat panel antennas from ALL.SPACE now. Dirk Wallinger: We do. That's exactly right. We're very excited about the addition of ALL.SPACE, and obviously we've signed a definitive agreement, and we still have regulatory approvals. Yeah, that's the real capability that ALL.SPACE is bringing, is that it's a multi-beam antenna. I think it has 4 different beams. It can talk to GEO, HEO, LEO, MEO, all of them. What the difference there is that it really provides this assured comm. You notice that York tends to be really focused on tactical capabilities, like in the theater, and that's precisely what the ALL.SPACE capability does, is because it's multi-beam, because it's an electronically steered antenna, it's very hard to jam. It's and it's very hard to basically take it out of communication. We've seen that, right? We've seen, you know, in the places that we're in nowadays, we're having a, you know, people are having a really hard time with communications, that's what the ALL.SPACE antenna does. In addition, right, you'll notice just generally in the market, there's a lot of focus on unmanned systems, right? Rightfully so. There's a lot of excitement about all the unmanned boats and ships and subs and things like that we want, that we need capability for in the sea, and same thing on the land, right? We're very focused on production right now, what we loved about the ALL.SPACE being added in was that when you have the production and it works, if you can't talk to it, then really it doesn't matter, right? If they're able to jam your communications, if they're able to jam your GPS, then that's gonna be a major problem. The fundamental design of the ALL.SPACE system is much more robust towards that. That's why it's gonna enable the unmanned systems to work in communication denied environments as well. That's a little bit of a nuance that I think most people didn't get about really the brilliance of what Paul and ALL.SPACE were doing. Coupling that with an assured communication and capabilities backbone in space really gives you that global connectivity that frankly as a, as a country we're gonna need. Austin Moeller: Excellent. Thank you. Operator: Your next question comes from the line of Jon Godyn from Citigroup. Please go ahead. Max: Hey, guys. This is Max on for John. Thanks for taking my question. I was just wondering if you could double-click on the capital allocation strategy a bit. You mentioned, you know, an M&A strategy of investing in growing adjacent markets. I was curious if this is part of the strategy of diversifying away from like the SDN dependency, or it's just like part of like your inorganic growth strategy as a whole. If you can provide some high level color into these rapidly growing adjacent markets. Thanks. Dirk Wallinger: On our, you know, on our earnings and today, we've always talked about there's two really areas that we're gonna look at as the major focus. One of them is supply chain because as Kevin alluded to, you know, there's just a lot of areas where we are highly dependent on China and other countries, and that has to end. Solar cells are one prime example of pretty much everything on solar cells. For space, triple junction type of cells comes from China or places that are unfriendly, and so we need to change that. You know, we had the Orbion acquisition as well. Like, they're a premier supplier of propulsion systems. They're operating phenomenally for us in orbit on numerous missions. Bringing that kind of high technology capability in, then you know, securing our supply chain from sources who we know will be unfriendly in the future, right? That's important to us. The other piece is, it isn't about you know, diversifying away from SDN. As I kind of alluded to, you know, earlier in the call, you know, we have 8 different mission sets. SDN is 1 of them. But we have 7 other ones. As far as diversity of capabilities, and ability for us to grow in numerous mission markets that are all ripe for proliferation, we feel very good about where we're at from a satellite manufacturing capabilities perspective. The strategy though is more of, look, we provide global connectivity and global solutions. That's what we do. We build autonomous robots in space, right? They operate for weeks, months, some, you know, could be years on end, right? They have these autonomy and controls and capabilities there, and what we wanna do is leverage that knowledge and experience and help adjacent markets. That's where we saw that by coupling with ALL.SPACE, we could take advantage of the massively growing and expanding unmanned markets. They are already doing phenomenally well in mobile markets. But unmanned markets, we can support that. By that terminal, being connected to our global system, what it means now is these, all these manufacturers for boats, subs, ships, land vehicles, et cetera, we can offer them a turnkey, assured connectivity and autonomy solution. Yeah, we have a lot of interest that we see that, you know, robots, and everything like that is gonna be important to what the United States is doing in the future. We're making offensive moves right now to try and help that market grow and be successful and execute. Because right now the focus is a lot on manufacturing. The next step is, how do you get these things to work? How do you connect them? How do you make sure that they understand where they're at? How are you coordinating them? That's where we think that there's lots of opportunity for York to grow because frankly, that's exactly what we do for satellite constellations right now. Kevin Messerle: Hey, Dirk. I'm just gonna add a quick little plug here. In the earnings deck that's posted to the website, there's some really helpful slides we think that will help illustrate what Dirk just talked about as it relates to this whole ALL.SPACE ecosystem. Slides eight, nine, and 10, whenever folks get a chance, I would encourage you to have a look at those slides. Max: Great. That was helpful. That is all for me. Thank you. Operator: Your next question comes from the line of Seth Seifman from JPMorgan. Please go ahead. Seth Seifman: Okay. Thanks very much, and good afternoon. I wanted to ask about the EACs in the quarter and, you know, what drove the cost growth that led to those, and, you know, whether that's associated at all with the schedule delays you're expecting and whether those delays bring any profitability risk with them. Kevin Messerle: Yeah, I'll take that one, Dirk. Hey, Seth. Good to hear from you. Yeah. What I would say with the first quarter EAC change, it was negative. There's a kind of a good story behind it, and let me I'll share what I can with it. You know, we have a particular, you know, very important government customer that has a very important mission. There's been, you know, over the past year or two, a little bit of uncertainty on particular technical capabilities. The good news is, in the Q1, you know, our tech teams and the government's tech teams, you know, came to an agreement on what that technical capability should look like. You know, frankly, it's gonna increase a little bit of material cost and a little bit of labor cost on our side. We felt the right thing to do for this customer and for this mission, which is an extremely important one for our nation, was to absorb that and not get into any, you know, sort of back and forth on, you know, getting a contract mod put in place for this. That's really the punchline on that EAC change. That's about 1 point of the 4 points of margin decline year-over-year is associated to that one-time event. You know, there could be some upside, you know, if we end up accomplishing that below those costs we estimated. We wanted to put forth a reasonably conservative estimate of what it would take to get this very important mission to the finish line, and we're gonna get it done, and it's gonna be a very important mission. The other thing worth mentioning in the gross margin decline year over year, about 2 points were caused by accelerated depreciation, a non-recurring depreciation charge of a satellite that we had in orbit. It's a hosted payload mission. We don't really do those anymore. A few years ago, those were some of the missions we were doing where we would own the satellite, take a customer's payload, and then we would operate the satellite and the payload for the customer. We don't do that anymore, but it was a one-time non-recurring depreciation charge related to that particular asset. What I would say, Seth, is that absent those 2 non-recurring events, we actually would've been up slightly year-over-year on a gross margin basis and up sequentially from Q4 on a gross margin basis. Again, you know, we things that aren't gonna recur again and actually, like I said, that the EAC is actually sort of a good story when you, when you look at what we're doing here for that customer. Seth Seifman: Okay. Okay. Excellent. Maybe just one clarification question to follow up. The revenue guide for the year, the unchanged revenue outlook, that's an organic outlook, correct? With no contribution from ALL.SPACE or any other acquisitions. Kevin Messerle: That's correct, Seth. We're not you know, until we close that deal, we're not gonna be adjusting guidance vis-a-vis ALL.SPACE. We'll take a look at that later in the year. Seth Seifman: Okay. Excellent. Thanks very much. Operator: Your next question comes from the line of Sheila Kahyaoglu from Jefferies. Please go ahead. Kyle: Hi, guys. This is Kyle on for Sheila. Thanks for taking my question. As it relates to sort of the full year revenue guide, yeah, I'd appreciate, you know, a little bit of color in terms of, you know, sort of what is already in backlog today to get there. You know, you called out some of the timing issues that seemed more near term, but, you know, what is sort of still the go-get or need to win to kind of hit the full year guide? Kevin Messerle: Sure. You know, if you look at our range of $545 million to $595 million, midpoint of $570 million, you know, as we mentioned on our last call in March, 70% of that is backlog. That has not changed. That, you know, kind of implies obviously, right, that 30% of that $570 million number is, you know, new business. We have chipped away, you know, frankly a little bit on that go-get for the new business that's related to that commercial contract, the $187 million commercial contract that we signed in the Q1. To be clear, it's not a super material number. Most of that's gonna be 2027 revenue, but it does contribute a little bit to that. That's kind of the high level roadmap. you know, as we talked about on our March call as well, you know, this is consistent with our plan. you know, we were not anticipating any large scale, you know, contract, you know, government contract awards in the first quarter, or frankly, even in the second quarter. We think that is going to be a second half event, and based on the what I would say, robust activity going on with our BD and proposal folks, that's, you know, we still feel very good about that new business go-get. Dirk Wallinger: Yeah, I mean, that's one of the dynamics we're seeing, and I alluded to it, you know, on kind of one of the questions, was just that the government, you know, although some folks are a little frustrated with the transparency, but I understand where it's coming from because they've been working very diligently on basically putting all the contract vehicles in. Most of these are IDIQs and OTAs, so other transaction authorities. They competitively compete them an award so that after that, they can just put out task orders and get the dollars to flow. That's what's pretty different about what's happening kind of today versus this industry for the past, I don't know, decade and a half that I've been working on it, is they're putting all the construction kind of capabilities so that they can let the dollars flow and flow quickly. What we're seeing is a few things. One is the time cycles for award are gonna be a lot shorter because they spent all their time getting people onto contracts, either through OTAs, of which we, I think we have 5 or 6 plus numerous IDIQs, of which I think we also have 5 or 6. What they're doing is issuing task orders so that they can immediately go to execute and issue the dollars. They're also doing a lot of RFIs that are awardable, which is rare. The process used to be RFI, draft RFP, award, then dollars, right? Now because they have these contract vehicles in place, they're doing RFIs and they're saying, "By the way, we might just award it." There's a significant acceleration of, you know, task orders and dollars issued, and I think in the next quarter or two. The programs themselves are much shorter. You know, historically for us, we're 1 of the faster builders and deployers, but that schedule was typically like 3 years plus. Now they're talking about 2-year schedules. The reason this matters is because, as Kevin alluded to, you know, we typically, you know, basically recognize our revenue as a function of cost. If the program is shorter, you're recognizing that, they're recognizing that contract value over a much shorter period. You know, contract vehicles are in place. Task orders are coming out. They've significantly shortened the procurement life cycle by awarding contracts ahead. The schedules themselves are significantly shorter as well. In our case, as I alluded to, you know, we're buying inventory, right? We're buying 20 space vehicles of inventory right now. I have another 11 already. What that means is that when you have inventory, we can immediately move it from inventory. When we're awarded a contract, it gets moved immediately over to the program costs, and we can recognize that immediately. There's also the kind of financial metrics of standing up a large production company like we have, where you're able to shorten these cycles, build inventory, recognize revenue quickly, and shorten these schedules. There's just a tremendous dynamic that's been going on, and it appears, I think, to a lot of folks who aren't familiar with what the government's doing, that, you know, there's not transparency and it just seems like it's dragging on. It actually hasn't. They've been doing a lot of work, and we're starting to see the benefits of that work that they've done. Long way of saying we're gonna be able to recognize the revenue in shorter cycles is how I see it. Kyle: Understood. Very, very helpful and very thorough. If I could ask just one on the commercial side with, you know, this large contract from February end. Does that sort of change the construct of what growth could be in that end market? I know you talked about the biz dev teams being very active across the different channels. Dirk Wallinger: We're very excited about that commercial opportunity because it's the first of many constellations that this customer needs. They've been, you know, very successful in the work that they've done on their side of things. I think that there's gonna be tremendous growth on the commercial side of things. We're also working some different avenues to overcome the capital, the upfront capital that's typically required with satellites, Kevin's been doing a little work there too. Commercial side, I see tremendous growth and the ability to leverage our, you know, production line and our production capabilities and our fully developed mission operations software suites is gonna be critical to help unlock and grow the commercial side of the business as well. Operator: Your next question comes from the line of Ryan Koontz from Needham & Company. Please go ahead. Ryan Koontz: Great. Thanks. I wanted to follow up on ALL.SPACE a bit more. I think, you know, Dirk, can you comment on, you know, the intellectual property and kind of track record of the products, number one. Number two, you know, when do you think that product will be able to, you know, ship in material volumes, and is the supply chain ready or is there a lot of work to do there? Thank you. Dirk Wallinger: Yeah, ALL.SPACE is a, you know, phenomenal company. Their headquarters and their, you know, their technical excellence is based in the U.K., but their production capacity is actually in the U.S. It's not an immature product by any means. They're already, you know, out there deployed and doing exercises. They have contracts with the U.S. Army and U.S. Navy. We'd love to work with them and expand their capability for the U.S. Air Force on the space side of things too, and I think we'll have a lot of success doing it. That terminal obviously is a phenomenal fit for Golden Dome. You know, assured communications that are far more resistant to jamming is definitely required for Golden Dome specifically. They have mass production in Alabama. I think that we are gonna York is opening an office in Alabama, as I alluded to in the prepared remarks. We're probably gonna expand our footprint in Alabama as well to support the kind of mass production that they're gonna need. I think they're really just the beginning. I mean, right now, you know, it's the military that is the main, you know, source of demand. As I alluded to, you know, as Kevin said, you know, if you look at the slides as well, right, slides I think 9 and 10, what you see is that you need this capability to support unmanned systems at the scale that we are gonna need. That part actually has me personally the most excited because that's really what you need, is you need these unmanned systems, but you need them out there in hundreds and thousands. The connectivity that ALL.SPACE and York bring together, support that capability and make sure that it's gonna work in the field when you need it. Operator: Your next question comes from the line of David Strauss from Wells Fargo. Please go ahead. Ben Tomik: Hi, this is Ben Tomik calling for David. I was just wondering if we could go back to the SDA and Transport Layer. For what you already have under contract for Tranche 1 and Tranche 2, is there any update to the launch schedule there? I know there were some delays. Then, from that funding, how much of that has been recognized already? Dirk Wallinger: Oh, yeah. Kevin will talk to the funding piece. The launch schedule's actually controlled, and we need SDA's permission to do that. I think it's probably safe for me to say that the vehicles are very mature and we feel they're ready to ship, but it's up to the SDA to announce exactly when that next launch is scheduled. Kevin, maybe you can answer the other part. Kevin Messerle: Yeah. On the funding, you know, we can't get into too many details on that. Broadly speaking, you know, we've only received funding, you know, for the both Tranche Two programs, you know, is less than 50%, right? We're in a significant contract asset status, meaning we've incurred more cost, we've recognized more revenue than cash received. That's just a timing thing. It all kind of comes out in the wash. Ben Tomik: Got it. Could you provide any update on current build rates and maybe like how progress has been on the Potomac facility? Dirk Wallinger: Yeah. Potomac's coming around really, really quickly. You know, right now, its main function is assembly, integration, and test. They've improved that ability significantly. I mean, you know, at the beginning of, you know, Tranche 1, it took like, I believe, you know, I'm kind of going off the top of my head, but I believe it took roughly a week for us to get through vibration testing through X, Y, and Z axes, and I think today they do it in like a day routinely. We've seen significant improvements there. We're receiving, we're standing up production capability in the sense of like we're starting to receive a lot of that and we're starting in the process of starting some building over at Potomac. That's kind of a weird way where, you know, a lot of supply chain talks about the satellite hardware and capabilities there, but supply chain definitely affects your ground test equipment, and your, and your mission-specific test equipment as well. We're, we're deploying that now. It'll take a little bit longer, but I think that we'll probably be full capacity by like 2026, as far as, you know, with the goal of trying to achieve, you know, 1,000 a year. Operator: Your next question comes from the line of Mitch Ingles from Raymond James. Please go ahead. Mitch Ingles: Hey, everyone. I'm on for Brian Gesuale. Congrats on a solid quarter and thanks for all the color. It's been very helpful so far. I just had a quick question. You mentioned you started building the first 20 platforms to accelerate your time to delivery. What is your target inventory level by the end of the year, and how should we think about any potential cash headwind from that and what you expect for revenue recognition as we speed up delivery cadence? Dirk Wallinger: We're building 20 to inventory now, and like I said, we have 11 actually that I think would be we could make available for inventory as well. We basically sized that based on launch vehicles. The M-CLASS is significantly larger, we wanted to basically have a full stack so you could launch an entire rocket. That's where the sizing came from. We have numerous contract opportunities right now where I think there's significant potential to move those platforms over immediately and start integrating payloads. Hypothetically, if we did that on something like some of the LX-CLASS that we have, I mean, we could be recognizing revenue within, you know, 2 or 3 months after contract signing, maybe even earlier. Depending if the payload was ready or not. If the payload's ready, we've shown that we can complete an entire spacecraft build with a brand new payload integrated, launch it, and be operating in orbit in 7 months. But look, that's very, you know, that's a very aggressive assumption. I would assume that, you know, if we kicked off contracts in I think, you know, Q3, Q4, we'd probably start to recognize revenue in Q4. It would be early kinda Q7, 2027 or, sorry, Q1 2027 as well. We envision those because the inventory will be much shorter. Those programs might only be a year long or a year and a half for us to recognize the full value of the contract. Mitch Ingles: Awesome. That's helpful. I guess one last one from me on the commercial contract, expected on starting revenues in 2027. How should we think about the cadence for that contract in terms of the timing of it and how long that could last? Kevin Messerle: Yeah. to be clear, there will be a portion of revenue associated with that contract this year. you know, it's not huge. You know, less than $30 million or so. we think most of it will be in 2027 and 2028. I would think of that program as probably closer to the longer end of some of our programs. you know, probably that when we talk, you know, 2 to 3 years, I'd say that one directionally is probably gonna be on the longer end. There's some pretty innovative payloads that our customer and our CTO are developing. It's a little bit of a longer program than our traditional as we go forward with these sat com missions for the government. You know, we've been there, done that. Those are gonna be very accelerated cycle programs. This one a little bit longer. Operator: Your next question comes from the line of Alexandra Mandry from Truist Securities. Please go ahead. Alexandra Mandry: Hey, good afternoon, and thanks for taking my question. You mentioned labor earlier, and I just wanted to see if you could provide more color on the labor force and ability to add and retain labor if needed. Thanks. Dirk Wallinger: Yeah, I can talk to that. Right now, we feel very good about where we're sitting as far as labor goes. You know, the vast majority of expertise that are required for our new missions obviously comes from the engineering group and software groups as well. Those are staffed pretty well. You know, most of our missions are starting to launch, which is, you know, the big bulk of their development cycle is typically early in their program. Like a PDR, CDR, which would be kind of the first year of the program. You know, it doesn't completely drop off, but that's where you get most of the work. As you approach launch, it just becomes more software team and the engineering teams free up to work on new programs. I feel very good about where we're at on the engineering front. I mean, I anticipate, you know, it will grow a little bit. It's definitely, you know, kind of leveling out. Now production's a different story. Production, you know, as we get more contracts and more capability, we're able to leverage, you know, highly skilled technicians that are in the area. We've had a lot of success bringing more technicians on to support, you know, higher and higher numbers of production, but we've also got significantly more efficient as well. You know, we will have to bring on more technicians, you know, as we continue to meet and exceed our projections for, you year, 2027, 2028. Even on that case, we've done so much work on automating the testing on the ground, and also standardizing on, you know, the bus platform itself and the software that's required to execute and check out that it's really reduced the number of hands required on the satellites as well. Long way of saying, you know, engineering and management we think is, you know, leveling out. I don't see that, you know, being a linear curve going forward as we earn more and more contracts. Technicians, you know, won't quite be linear, there'll be some growth there, more than, you know, 10%. I don't think it's, we require any kinda doubling or anything of that drastic nature at all to support significantly more contracts and production capability. Operator: At this time, there are no further questions. I would like to hand the conference over to Dirk Wallinger for closing remarks. Dirk Wallinger: Really appreciate everyone taking the time to hear the story and allowing us also the opportunity to clarify and add some more understanding of kinda the budgets and where they fit and where we fit. Obviously we're very excited at where the budgets are sitting. We're excited about our ability to deliver. With the number of contract vehicles that we have and the budgets allocated for all the different kinds of capabilities the country needs, we're extremely excited about what's gonna happen here in the next couple of quarters in 2026 and 2027. Obviously very excited about delivering on some of our commercial constellations as well. Really appreciate the time everyone took. Thank you so much, have a good day. Operator: This concludes today's call. Thank you all for attending. You may now disconnect. Before you buy stock in York Space Systems, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and York Space Systems wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $483,476!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,362,941!* Now, it’s worth noting Stock Advisor’s total average return is 998% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 19, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. York Space (YSS) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Interested in York Space Systems Inc.? Here are five stocks we like better. York Space Systems reported Q1 2026 revenue of $116.3 million, topping internal expectations, and reaffirmed its full-year revenue guidance of $545 million to $595 million despite some supply-chain timing delays. Backlog rose 18% to $642.3 million, helped by a $187 million commercial satellite constellation contract, with most of that revenue expected in 2027 and 2028 rather than this year. Management emphasized aggressive expansion through acquisitions and vertical integration, including Orbion Space Technology and the planned ALL.SPACE deal, while also highlighting new government awards tied to national security space programs. York Space Systems (NYSE:YSS) reported first-quarter 2026 revenue ahead of internal expectations and reaffirmed its full-year outlook, while management highlighted new commercial and government awards, acquisition activity and efforts to accelerate satellite delivery timelines following the company’s January initial public offering. President and CEO Dirk Wallinger said the quarter marked “a strong and focused start to the year,” pointing to revenue growth, backlog expansion and progress on strategic initiatives. Chief Financial Officer Kevin Messerle said revenue for the quarter was $116.3 million, up $10.1 million, or 9%, from the prior-year period. → McDonald's Is the Cheapest It’s Been in Years—Does That Make It a Buy? The increase was “primarily driven by growth in our major government programs,” Messerle said, partially offset by a tough comparison with the prior-year quarter, when York accelerated production of its first 21 Tranche 1 Transport Layer communication satellites ahead of their September launch. York reported gross margin of 19%, down 4 percentage points from a year earlier. Messerle attributed the decline to the net impact of estimate-at-completion adjustments, which benefited results last year but weighed on this year’s quarter, along with a non-recurring depreciation expense. → How Berkshire’s New York Times Bet Looks Today Gross margin dollars were $22.2 million, compared with $24.6 million a year earlier. Contribution margin rose 1 percentage point to 34%, which Messerle said reflected a richer mix of newer programs that tend to carry higher margins than older programs. Contribution margin dollars increased to $40.1 million from $35.3 million. Operating expenses rose as the company expanded. Messerle said SG&A plus R&D expenses increased 35% year over year, driven by higher headcount, public company costs and incremental salaries and costs tied to the acquisitions of ATLAS in August 2025 and Orbion in March 2026. → Oklo Stock Could Be Ready for Another Massive Run Adjusted EBITDA was negative $3.6 million, compared with positive $5.5 million a year earlier. Loss per share was $1.51, with approximately $1.07 tied to two substantial non-recurring, non-cash charges associated with the IPO, Messerle said. York ended the quarter with $655.7 million in cash and cash equivalents and $150 million available under its revolving facility, for total liquidity of $805.7 million. Capital expenditures were $2.1 million, compared with $1.2 million in the year-ago quarter. Backlog increased 18% to $642.3 million at quarter-end from $542.6 million as of Dec. 31, 2025. Messerle said the increase was driven by a commercial contract win announced in March, partially offset by revenue recognized during the quarter. Wallinger said York finalized a $187 million commercial contract in February for a 20-plus satellite constellation built on the M-CLASS platform. He said the company has completed the kickoff with the customer and begun early design work, with significant revenue contribution expected in 2027. During the Q&A session, Messerle said the commercial contract will contribute some revenue this year, “less than $30 million or so,” with most revenue expected in 2027 and 2028. He described the program as likely being on the longer end of York’s typical two- to three-year program range because of “pretty innovative payloads” being developed by the customer and York’s chief technology officer. York reaffirmed its 2026 revenue guidance of $545 million to $595 million, representing 48% year-over-year growth at the midpoint. Messerle said the outlook remains unchanged despite component supply delays that are expected to push a portion of second-quarter revenue into the second half of the year. “It’s all a timing thing,” Messerle said in response to a question from Baird analyst Peter Arment. He said the delays are tied to a handful of suppliers and that, because York recognizes revenue on a percentage-of-completion basis, delays in development and production status on certain purchase orders can shift revenue later in the year. Messerle said second-quarter revenue could be roughly flat year over year. In response to a question from Jefferies, Messerle said about 70% of the midpoint of the full-year revenue range is already in backlog, consistent with what the company said on its prior call. The remaining 30% depends on new business, and he said York has made some progress on that requirement through the commercial contract signed in the first quarter. Wallinger said the IPO expanded York’s ability to invest in its “first-mover advantage,” including scaling its business development organization and building inventory. The company has begun building the first 20 satellite platforms into inventory, which Wallinger said could reduce time to orbit by up to 75% in response to rapid delivery demand. York completed the acquisition of Orbion Space Technology in the first quarter. Wallinger said Orbion strengthens supply chain control and integrates flight-proven propulsion technology, while continuing to operate as a wholly owned subsidiary. The company also signed an agreement in April to acquire ALL.SPACE, which develops and manufactures jam-resistant, multi-band mobile tactical terminals for satellite communications. Wallinger said ALL.SPACE’s Hydra Terminal systems provide resilient, network-agnostic communications on the move across space, air, land and maritime domains. Wallinger said the acquisition, expected to close in the third quarter subject to regulatory approvals, will help York expand into adjacent markets, particularly unmanned systems. He said ALL.SPACE has supported the U.S. Army and U.S. Navy through programs including Next Generation Tactical Terminal and satellite terminal non-geostationary programs. On government opportunities, Wallinger said York won multiple indefinite-delivery/indefinite-quantity awards in March tied to next-generation national security space architectures. He said the awards support critical national defense and war-fighting space capabilities, including systems relevant to missions such as Golden Dome, and that York expects task orders “in the near term.” Wallinger also addressed questions about the Space Development Agency and the evolving Space Data Network budget. He said transport capabilities remain an “enduring need” and that York views the shift toward Space Data Network as an opportunity. He cited budget line items including a roughly $3 billion Space Data Network backbone and an $800 million “multiple vendor procurement” line item, which he described as encouraging for competition. Wallinger said York is under contract for seven mission sets outside Space Data Network, including advanced fire control, Moving Target Indicator, remote proximity operations, tracking data relay, advanced waveforms, weather and IDS. He said the company is tracking opportunities across classified, Golden Dome and other mission areas, and characterized York as one of a small number of U.S. companies positioned to deliver hundreds of satellites immediately. York also secured an extension to its NASA PEX contract through 2027, Wallinger said. He added that business development activity remains strong across government, classified and commercial markets. “We’re extremely excited about what’s going to happen here in the next couple of quarters in 2026 and 2027,” Wallinger said in closing remarks, citing contract vehicles, allocated budgets and the company’s ability to deliver. York Space Systems is a leading, U.S.-based, space and defense prime(1) providing a comprehensive suite of mission-critical solutions for national security, government and commercial customers. York is one of the only space and defense primes with proprietary hardware and software capabilities designed to address customers' complex mission requirements across the critical elements of the entire space ecosystem throughout the mission lifecycle. York is the number one provider to the U.S. Department of Defense's (“DoD”) Proliferated Warfighter Space Architecture (“PWSA”) by number of spacecraft operating in-orbit, by number of contracts, and by variety of contract types as of September 2025. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "York Space Systems Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Government and Commercial Wins Reinforce Execution as Company Accelerates Expansion DENVER, May 14, 2026--(BUSINESS WIRE)--York Space Systems Inc. (NYSE: YSS) (York) today announced financial results for the quarter ended March 31, 2026. * See definition and reconciliation of Adjusted EBITDA to net loss under "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Measures." "Our Q1 results reflect consistent execution against the objectives we set at the start of the year and with our IPO. Our commercial momentum and IDIQ awards demonstrate continued traction, and after quarter end, our agreement to acquire ALL.SPACE represents a meaningful step in expanding our total addressable market and broadening the range of missions we can support," said Dirk Wallinger, CEO of York. "We are actively investing ahead of demand by building inventory of our satellite platforms and aligning our operations to support faster deployment timelines. That readiness is increasingly important as customers prioritize resilient, proliferated architectures and communications capabilities that can perform in more complex operating environments. Our focus remains on disciplined execution, continuing to build capacity, integrate new capabilities, and convert opportunity into awarded work." "The team is executing well and driving strong growth," said Kevin Messerle, CFO of York. "Given the breadth of demand in front of us, we remain disciplined in how we allocate capital to maximize long-term value. The IPO has given us the opportunity to accelerate our growth by entering new but adjacent markets and building our new business footprint in the U.S. and across the world." First Quarter 2026 Company Results Revenue increased $10 million, or 9%, to $116 million. This increase was primarily driven by growth in our major government programs. Gross Margin decreased 4 percentage points to 19%; Gross Profit decreased 10% to $22 million. The decrease in gross margin is largely attributable to unfavorable EAC adjustments taken in the quarter together with favorable EAC adjustments in the year-ago quarter; the decrease in gross profit is primarily driven by the same, offset by higher revenue. Backlog increased to $642 million reflecting the new commercial contract signed in first quarter of 2026. Selected highlights York completed its IPO, raising net proceeds of $583 million. York acquired Orbion Space Technology, strengthening its supply chain with flight-proven electric propulsion systems. York secured a 12-month extension from NASA and Johns Hopkins Applied Physics Laboratory (APL) for its BARD mission. This enables an expanded series of demonstrations of the Polylingual Experimental Terminal (PExT) payload throughout 2026 and into early 2027, including increased interoperability testing and direct-to-Earth (DTE) communications with commercial ground service providers, supporting near real-time commanding, telemetry, and science data transfer options for future science and operational missions. York was awarded multiple IDIQ contract awards across two mission areas critical to national security and defense. York will compete for, and is well-positioned to win and execute, task orders under these awards. These awards expand York’s role in next-generation space and defense architectures. York finalized a multi-year $187 million commercial contract for a 20+ satellite constellation built on the M-CLASS platform, demonstrating continued growth in the commercial market. York initiated build-out of the first 20 satellite platforms for inventory, leveraging its mature production capacity and Manufacturing Readiness Level (MRL) 9 capabilities to accelerate time-to-orbit and meet growing demand for rapid, large-quantity deployments from government and commercial customers. In April 2026, York announced the entry into a definitive agreement to acquire ALL.SPACE, a leading provider of advanced satellite communications terminals and multi-network connectivity solutions. With the acquisition, York is creating a complete communications ecosystem that operates in contested environments across commercial and government networks. The consummation of the acquisition is subject to regulatory approvals and customary closing conditions. Liquidity As of March 31, 2026, our cash and cash equivalents were $656 million and availability under our Revolving Facility was $150 million, for total liquidity of $806 million. Business outlook as of May 14, 2026 We are reaffirming our revenue guidance range of $545 million to $595 million for the full year 2026, as provided on our March 19, 2026 press release. *Business outlook is based on information as of today, May 14, 2026, and may be impacted by factors outside York’s control. See "Forward Looking Statements." Conference Call York will host a conference call to review its financial results for the first quarter 2026 and its outlook for the future and may disclose other material developments affecting its business and/or financial performance. Listeners may access the conference call live via audio webcast. Thursday May 14, 2026 3:00 pm Mountain Time (5:00 pm Eastern Time) Webcast: https://events.q4inc.com/attendee/970874516 An audio webcast replay of the conference call will be available for one year at http://ir.yorkspacesystems.com. About York Space Systems York Space Systems is a leading, U.S.-based national defense and commercial prime providing a comprehensive suite of mission-critical solutions for national security, government, and commercial customers. York is one of the only space and defense primes with proprietary hardware and software capabilities designed to address customers’ complex mission requirements across the critical elements of the entire space ecosystem throughout the mission lifecycle. York is purpose built to address evolving national security space challenges and to adapt to the ongoing shift in the U.S. government’s mission needs and procurement processes. Forward-Looking Statements This press release and the related conference call contain "forward-looking statements" within the meaning of, and we intend such forward-looking statements to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "objective," "ongoing," "plan," "predict," "project," "potential," "should," "will," "would," or the negative of these terms or other comparable terminology. In particular, statements about our 2026 outlook, future revenue and growth prospects, backlog, growth of market share and addressable market, growth and M&A strategy, business plans, inventory building, expectations regarding government agencies, programs and actions, the timing and consummation of the acquisition of ALL.SPACE, benefits expected from the acquisitions of Orbion Space Technology and ALL.SPACE, the future health of our spacecraft, the markets in which we operate, including growth of our various markets, potential new products and product innovation and our expectations, contract performance, beliefs, plans, strategies, objectives, prospects, assumptions, or future events or performance contained in this press release and made during the related conference call, are forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include: disruptions in U.S. government operations and funding and budgetary priorities of the U.S. government; limitations on investor insight into portions of our business due to our classified contracts with the U.S. government; our failure to establish and maintain important relationships with government agencies and prime contractors; the potential inability to realize our backlog; difficulties or disruptions in consummating future acquisitions and integrating the operations of acquired companies into our business, and in realizing the expected benefits of these transactions, including with respect to Orbion Space Technology and ALL.SPACE, cost overruns on our contracts, including before final receipt of a contract; concentration of our customers and backlog; our failure to implement and maintain an effective system of internal control over financial reporting; fluctuation of our operating results; significant competition in the global space and satellite market; our failure to manage our growth effectively and our ability to achieve and maintain profitability; any failure of our spacecraft systems and related software to operate as intended, resulting in warranty claims for product failures, schedule delays or other problems with existing or new products; our revenue, results of operations and reputation may be negatively impacted if our products contain defects or fail to operate in the expected manner; our dependence on contracts entered into in the ordinary course of business and our dependence on major customers and vendors; the scarcity or unavailability of critical components used to manufacture our products or used in our development programs; the emerging and shifting nature of the market for spacecraft platforms and satellite software and its failure to achieve the growth potential we expect; uncertain global macro-economic and political conditions, including the implementation of tariffs; a failure of our information technology systems, physical or electronic security protections; the failure to adequately protect our proprietary intellectual property rights; the inability to comply with any of our contracts or meet eligibility requirements to obtain certain government contracts; government laws and regulations, particularly those relating to contracting in the defense industry; our substantial indebtedness; and the other factors set forth in our filings with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release and the related conference call. Actual results may vary from the estimates provided. We undertake no intent or obligation to publicly update or revise any of the estimates and other forward-looking statements made in this press release, whether as a result of new information, future events or otherwise, except as required by law. Non-GAAP Financial Measures We believe that in addition to our results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), our non-GAAP financial measures including contribution margin, contribution margin %, EBITDA, and Adjusted EBITDA provide useful information to management, investors, and analysts in assessing our financial performance and results of operations across reporting periods by excluding items we do not believe are indicative of our core operating performance. In addition to our GAAP measures, we use these non-GAAP financial measures to evaluate our operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources, including budgeting for infrastructure. These non-GAAP financial measures are used to supplement the financial information presented on a GAAP basis and should not be considered in isolation or as a substitute for the relevant GAAP measures and should be read in conjunction with information presented on a GAAP basis. Because not all companies use identical calculations, our presentation of non-GAAP measures may not be comparable to other similarly titled measures of other companies. Non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact on our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which items are adjusted to calculate our non-GAAP financial measures. We compensate for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in our public disclosures. Contribution Margin We refer to revenue less direct material costs of revenue as "contribution margin" and contribution margin divided by revenue as "contribution margin %." The closest comparable GAAP financial measures to contribution margin and contribution margin % are gross profit and gross profit margin %, respectively. We believe contribution margin and contribution margin % are useful measures of the variable costs that we incur in order to provide services to our customers. Our presentation of contribution margin and contribution margin % should not be construed as an inference that our future results will be unaffected by variable costs. EBITDA and Adjusted EBITDA We define EBITDA as net income (loss) adjusted for interest expense, interest income, income tax benefit, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for changes in the fair value of derivatives, stock-based compensation expense, transaction costs, and other non-recurring items. Net loss is the most directly comparable GAAP measure to Adjusted EBITDA. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, see the "Reconciliation of GAAP to Non-GAAP Results" table in this press release. Backlog We view backlog as a key measure of our business growth. Backlog represents our estimate of the revenue we expect to realize in future periods as a result of performing work on contracts that have been awarded to us (net of any revenue already recognized as of the backlog date). We include the aggregate expected revenue of awarded contracts in our backlog upon the execution of a legally binding agreement, even though our contracts include certain termination rights exercisable by our customers with advance notice. We exclude unexercised contract options from our backlog. Contract liabilities recognized on our consolidated balance sheets consists of payments and billings that we have received in excess of revenue that we have recognized. Because cash receipts from these contracts have not been recognized into revenue, they are included in our backlog calculation. We monitor our backlog because we believe it is a forward-looking indicator of potential sales which can be helpful to investors in evaluating the performance of our business and identifying trends over time. Although backlog reflects business associated with contracts that are considered to be firm, terminations, amendments, or contract cancellations may occur, which could result in a reduction in our total backlog and potential future revenue that is never recognized. APPENDIX - 1 APPENDIX - 2   View source version on businesswire.com: https://www.businesswire.com/news/home/20260514013419/en/ Contacts Investor Contact Christopher [email protected] Media Contact Sarah [email protected]