0001193125-25-211265
SEC filingSpacecraft Solutions revenue fell 49% in Q2, while Launch revenue surged 113% YoY; backlog grew to $1.3B by July 31, 2025.
For the three months ended June 30, 2025, total revenue decreased 26% YoY to $15.5M, primarily due to a 49% decline in Spacecraft Solutions revenue, which fell to $9.2M from $18.1M. This drop was driven by the absence of a one-time $6.8M KAIST mission in the prior year and lower Blue Ghost program activity. Conversely, Launch revenue grew 113% to $6.3M, supported by $2.5M from Eclipse development contracts and $0.9M from new engineering services. Gross profit improved 35% to $4.0M, with gross margin expanding to 25.7% from 14.0% due to favorable mix. Operating loss widened 11% to $54.4M, as R&D expenses increased 16% to $45.8M, reflecting continued investment in Eclipse and Elytra. Net loss increased 19% to $63.8M. For the six-month period, total revenue surged 143% to $71.4M, with Spacecraft Solutions revenue up 139% driven by the successful Blue Ghost Mission 1 ($38.0M) and progress on subsequent missions. Gross margin improved to 8.7% from 3.5%. Net loss rose 17% to $123.9M.
Launch revenue demonstrated strong momentum, with H1 growth of 169% to $11.5M. The segment benefits from increased investment in Eclipse development, which contributed $5.8M in revenue, and new engineering services. Spacecraft Solutions remains the larger revenue driver, though it experiences quarterly volatility due to milestone timing. The segment's H1 revenue of $59.9M was boosted by the Blue Ghost Mission 1 completion and ongoing work on Missions 2, 3, and 4. Backlog, a key indicator of future revenue, stood at $1.12B as of June 30, 2025, and grew to $1.3B by July 31 with the NASA award of Blue Ghost Mission 4. Multi-launch agreements contribute $344.8M of the backlog.
Management emphasizes its strong backlog and milestone-based billing, which provides cash flow visibility. The company expects to ramp launch cadence with Alpha and complete Eclipse development. The IPO in August 2025 netted $933.1M, which was used to repay existing debt ($136.1M) and enter a new $125M revolving credit facility. This strengthens liquidity—cash and equivalents were $205.3M as of June 30. Management believes cash is adequate for at least 12 months. R&D spending will continue as the company invests in Eclipse, Elytra, and production scale-up. No specific revenue or margin guidance was provided, but the company expects to improve profit margins over time through cost reduction and higher volumes.