York Space Systems reported a second quarter 2026 net loss of $0.31 per share on revenue of $92.5 million, missing analyst expectations on both the top and bottom lines. Despite a 10% year-over-year revenue increase and significant gross margin expansion, management lowered its full-year revenue outlook to $375M-$405M, attributing the revision to a shift in U.S. government procurement methodologies toward IDIQ structures that delay initial revenue recognition.
Key Highlights
- Revenue of $92.5 million represented 10% year-over-year growth, though it fell short of the $93.89 million analyst estimate.
- Contract backlog stood at $592.0 million at quarter-end, a sequential decrease of 8% from $642.3 million on March 31, 2026.
- Gross margin expanded 13 percentage points to 24%, benefiting from the roll-off of a negative estimate-at-completion (EAC) adjustment recorded in the prior year.
- The company completed the acquisition of ALL.SPACE and Solestial in Q3 to vertically integrate solar technology and expand into assured communications terminals.