0001819810-26-000029
SEC filingRedwire Corporation reported FY 2025 revenues of $335.4 million, a 10.3% increase from $304.1 million in FY 2024. However, the company incurred significant losses, with a net loss attributable to Redwire Corporation of $226.6 million, compared to a net loss of $114.3 million in the prior year. The substantial increase in net loss was driven by a gross profit decline to $17.3 million (5.2% margin) from $44.5 million (14.6% margin), combined with a significant rise in operating expenses, including $171.3 million in SG&A, $21.2 million in transaction expenses, $34.7 million in impairment expense, and $19.8 million in R&D. The company's operating loss widened to $229.7 million from $42.2 million. Cash flow from operations was negative $177.3 million, but financing activities, including a $518.4 million common stock issuance, provided $397.5 million, resulting in a net cash increase of $46.1 million. The company's total assets grew to $1.45 billion, largely due to the acquisition of Edge Autonomy, which added significant goodwill and intangible assets.
Redwire Corporation's FY 2025 financial results reflect a challenging year marked by revenue growth but significant profitability deterioration. Revenues increased by 10.3% to $335.4 million from $304.1 million in FY 2024. However, the company's net loss attributable to Redwire Corporation widened substantially to $226.6 million from $114.3 million in the prior year. This deterioration was driven by a collapse in gross margin to 5.2% from 14.6% and a significant increase in operating expenses. The operating loss expanded to $229.7 million from $42.2 million. The company reported a net loss available to common shareholders of $272.3 million after accounting for $45.8 million in dividends on Convertible Preferred Stock. Basic and diluted EPS were both -$2.00, compared to -$2.35 in FY 2024.
Revenue growth was driven entirely by the Defense Tech segment, which saw revenue increase 157.5% to $125.6 million from $48.8 million in FY 2024, primarily due to the acquisition of Edge Autonomy completed in June 2025. In contrast, the Space segment revenue declined 17.8% to $209.8 million from $255.3 million. Geographically, U.S. revenue was $195.9 million (58% of total), European revenue was $125.3 million (37% of total), and other regions contributed $14.1 million (4% of total). The company's revenue recognition was 66% over time and 34% point in time. Customer concentration was notable, with two customers representing approximately 19% and 20% of total revenues.
The company's gross margin deteriorated significantly to 5.2% from 14.6% in FY 2024, with gross profit declining to $17.3 million from $44.5 million. Cost of sales increased to $318.1 million from $259.6 million. Operating expenses surged, with selling, general and administrative expenses increasing to $171.3 million from $71.4 million, transaction expenses of $21.2 million (primarily related to the Edge Autonomy acquisition), impairment expense of $34.7 million (including $20.9 million of goodwill impairment in the Space Europe reporting unit), and research and development expenses of $19.8 million. The operating margin was -68.5%. The company recognized net unfavorable estimates at completion adjustments of $54.5 million before taxes, primarily due to a $25.2 million adjustment in the Defense Tech segment and $14.1 million in the Space Europe reporting unit.
Cash flow from operating activities was negative $177.3 million, compared to negative $17.3 million in FY 2024. Investing activities used $175.1 million, primarily for the Edge Autonomy acquisition ($151.8 million net). Financing activities provided $397.5 million, driven by proceeds from issuance of common stock ($518.4 million) and debt proceeds ($191.1 million), partially offset by debt repayments ($234.2 million) and repurchase of convertible preferred stock ($63.9 million). The net result was a $46.1 million increase in cash, with ending cash, cash equivalents and restricted cash of $95.2 million. Total assets increased to $1.45 billion from $292.6 million, largely due to the Edge Autonomy acquisition which added $721.3 million in goodwill and $298.1 million in intangible assets. Total liabilities were $312.1 million, including $80.0 million in long-term debt. Shareholders' equity was $1.06 billion.
The company faces numerous risks as disclosed in Item 1A, including its history of losses, challenges integrating the Edge Autonomy acquisition, dependence on U.S. government contracts, competitive pressures, and cybersecurity threats. The company identified material weaknesses in internal control over financial reporting related to insufficient IT general controls and process-level control activities. Management is implementing remediation plans including deploying an ERP system and engaging a third-party consulting firm. The company believes its existing liquidity of $129.5 million (including $35.0 million in available credit facilities) will be sufficient to meet working capital needs for at least the next twelve months. The company operates in evolving industries with rapid technological change and faces significant execution risks in its growth strategy.