0001493152-26-023709
SEC filingQ1 revenue surged 51% on new contracts, but operating losses and cash burn deepened as the company invested in satellite production.
Revenue for the first quarter of 2026 was $359.4K, a 50.7% increase from $238.5K in the same period last year. This growth was primarily driven by new customer contracts, including those with Lonestar and Teledyne Marine, reflecting the company's success in expanding its customer base in the growing low Earth orbit satellite market.
Gross loss improved 35.5% to -$1.1M from -$1.6M in the prior year quarter. The improvement was driven by lower satellite and related software depreciation expense and improved cost discipline in the manufacturing side of the business. Despite the improvement, gross margin remained negative at -292.2%, indicating that cost of revenue still significantly exceeds revenue.
Operating loss narrowed 9.9% to -$5.5M from -$6.1M, reflecting the gross loss improvement and controlled operating expenses. However, net cash used in operating activities increased 76.0% to -$5.6M from -$3.2M, driven by investments in satellite production and working capital. Net loss improved 18.8% to -$5.2M from -$6.4M, and diluted earnings per share improved to -$0.08 from -$0.35.
Capital expenditures totaled $3.7M, up from $3.0M in the prior year, primarily for satellite components and software. Free cash flow, defined as operating cash flow minus capital expenditures, was -$9.3M. The company's cash position and debt levels were not disclosed in the authoritative packet, but the cash burn reflects ongoing investment in satellite production and infrastructure.
The company continues to execute its growth strategy, with several satellites in production and plans to launch 2-3 LizzieSat satellites over the next three years. Management believes that its vertically integrated manufacturing, use of commercial off-the-shelf systems, and adaptable pricing models position it to compete effectively in the smallsat sector. However, any delays in regulatory approvals or launch operations could adversely impact results and growth plans.