0001193125-25-277941
SEC filingRevenue grew 38% driven by Spacecraft Solutions surge, but net loss widened on IPO-related costs and warrant revaluation.
For the three months ended September 30, 2025, total revenue increased 38% to $30.8 million from $22.4 million in the same period last year. The growth was primarily driven by a 134% surge in Spacecraft Solutions revenue to $21.4 million, including a $10.0 million contract addendum for Blue Ghost Mission 1. Launch revenue declined 29% to $9.4 million due to no Alpha launches in the quarter compared to one in Q3 2024, partially offset by $3.6 million in engineering services fees for launch facility development.
Gross profit rose 9% to $8.5 million, but gross margin contracted to 27.6% from 34.7% as cost of sales grew faster (53% vs 38% revenue growth), reflecting higher costs on Spacecraft Solutions programs and launch facility services.
Operating expenses increased 68% to $70.7 million, driven by a 63% rise in R&D ($48.8 million, mainly from Alpha and Eclipse development) and a 113% increase in SG&A ($21.9 million, including $7.4 million in IPO-related transaction costs and stock-based compensation). Loss from operations widened to $62.2 million from $34.2 million.
Below the operating line, total other expense was $71.2 million versus $6.6 million last year, due to a $42.2 million non-cash charge from the change in fair value of warrant liability and a $30.4 million loss on extinguishment of debt from repaying the prior credit facility with IPO proceeds. Interest income net swung to income of $1.3 million from expense of $6.7 million, reflecting returns on IPO proceeds and lower debt. Net loss was $133.4 million compared to $40.8 million.
Launch revenue declined to $9.4 million as the company had no launches in the quarter. The segment is expected to ramp up cadence as Alpha production increases and Eclipse development progresses. The decrease was partially offset by engineering services for new launch sites (Wallops Island, Sweden), which contribute to future launch capacity.
Spacecraft Solutions revenue jumped to $21.4 million, reflecting the success of Blue Ghost Mission 1 (completed March 2025) and additional contracts. The segment benefits from strong demand for lunar missions and Elytra on-orbit services. Backlog grew to $1.28 billion as of September 30, 2025, with multi-launch agreements of $344.8 million.
Management highlighted several key drivers: the ramp-up of Alpha launch cadence, completion of Eclipse development, and continued Blue Ghost missions (Mission 2 scheduled for far side of the Moon, Missions 3 and 4 under contract). The company expects to improve profit margins as fixed costs are amortized over more launches. However, near-term headwinds include a U.S. government shutdown (since October 1, 2025) that could delay contracts, and the impact of tariffs and inflation. The company believes its $995.2 million cash position is adequate for at least 12 months. Guidance was not provided, but the company noted active discussions to add to backlog and a focus on scaling operations while managing costs.