Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.26.3
Segment Reporting
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Note R – Segment Reporting
Operating segments are defined as components of an entity for which separate financial information is available and regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM is its Chief Executive Officer.

During the fourth quarter of 2025, the Company reorganized its segment structure to align with the strategic offerings of each business segment and the way the CODM assesses performance and makes capital allocation decisions. The Company previously operated in one operating segment and one reportable segment. Prior period segment information has been revised to reflect the reorganized segment structure.
The Company operates in two operating segments and two reportable segments, Space and Defense Tech. The Space segment develops and provides next-generation spacecraft, large space infrastructure, and microgravity capabilities to serve civil, national security, and commercial space customers. The Defense Tech segment develops and provides combat proven autonomous systems, optical sensors and radio frequency payloads that provide intelligence, surveillance, and reconnaissance capabilities for U.S. and allied nations across multiple domains.

The CODM assesses segment performance and decides how to allocate resources based on Segment Adjusted EBITDA, a non-GAAP measure, defined as income (loss) before taxes, excluding, depreciation and amortization, impairment expense, transaction expenses, acquisition integration costs, acquisition earnout costs, purchase accounting fair value adjustment related to deferred revenue and inventory, severance costs, disposal of long-lived assets, equity-based compensation, capital market and advisory fees, litigation-related expenses, and gains on sale of joint ventures, net of costs incurred. Segment Adjusted EBITDA also excludes intra- and inter-segment sales and costs and corporate pushdown costs. Total asset information is not included in the following summary since the CODM does not regularly review such information for the reportable segments.

The Company has intra- and inter-segment sales and costs, which are eliminated in the reportable Segment Adjusted EBITDA figures below. The Company had $0.3 million and $1.8 million of inter-segment sales and costs during the three months ended September 30, 2026 and 2025, respectively, and $1.8 million and $4.5 million of inter-segment sales and costs during the nine months ended September 30, 2026 and 2025, respectively, which are eliminated in consolidation. Further information related to the Company’s products and services and geographical distribution of revenues is disclosed in Note N – Revenues.

All other corporate charges presented in the tables below mainly consists of corporate overhead costs maintained at the corporate level, including gains and losses related to financial instruments measured at fair value. These expenses include costs relating to treasury, accounting, consulting, advisory, legal, tax and audit, insurance, financial reporting services and various administrative expenses related to the corporate headquarters.
The following tables provide a reconciliation of Segment Adjusted EBITDA to consolidated income (loss) before taxes:
Three Months Ended
September 30, 2026 September 30, 2025
Space
Defense Tech
Total
 Space Defense Tech Total
Revenues
 $ 61,266  $ 47,769  $ 109,035  $ 46,548  $ 56,884  $ 103,432 
Less:
Cost of sales
 50,268  23,545  73,813  44,675  41,947  86,622 
Selling, general and administrative
 5,630  18,999  24,629  6,931  30,395  37,326 
Transaction expenses —  —  —  —  58  58 
Research and development 4,992  9,078  14,070  644  6,842  7,486 
Reportable segment income (loss) from operations $ 376  $ (3,853) $ (3,477) $ (5,702) $ (22,358) $ (28,060)
Less:
Other (income) expense, net
 223  553  776  15  218  233 
Add:
Depreciation and amortization expense
 1,579  8,612  10,191  2,165  9,437  11,602 
Purchase accounting fair value adjustment related to inventory
 —  —  —  —  11,227  11,227 
Severance costs
 93  23  116  315  33  348 
Equity-based compensation expense
 889  1,446  2,335  1,189  7,916  9,105 
Transaction expenses
 —  —  —  —  58  58 
Acquisition integration cost —  213  213  148  199  347 
Disposal of long-lived assets
 20  27  47  —  165  165 
Litigation-related expenses —  1,325  1,325  —  —  — 
Capital market and advisory fees 72  —  72  —  —  — 
Reportable Segment Adjusted EBITDA
 $ 2,806  $ 7,240  $ 10,046  $ (1,900) $ 6,459  $ 4,559 
Reconciliation of reportable segment results to consolidated income (loss) before taxes:
Interest income (expense), net 2,653  (6,282)
Depreciation and amortization expense (11,214) (12,121)
Severance costs
 (155) (353)
Equity-based compensation expense (6,310) (11,993)
Transaction expenses
 (934) (684)
All other corporate charges (14,695) 7,070 
Purchase accounting fair value adjustment related to inventory
 —  (11,227)
Acquisition integration cost (551) (1,041)
Disposal of long-lived assets
 (218) (165)
Litigation-related expenses (862) (1,216)
Capital market and advisory fees (1,355) (837)
Income (loss) before income taxes
 $ (23,595) $ (34,290)
Nine Months Ended
September 30, 2026 September 30, 2025
Space
Defense Tech
Total
 Space Defense Tech Total
Revenues
 $ 169,127  $ 153,954  $ 323,081  $ 155,363  $ 71,224  $ 226,587 
Less:
Cost of sales
 149,592  79,915  229,507  148,862  70,938  219,800 
Selling, general and administrative
 14,109  96,590  110,699  14,320  62,523  76,843 
Transaction expenses —  —  —  —  115  115 
Research and development 14,611  24,304  38,915  1,682  8,082  9,764 
Reportable segment income (loss) from operations $ (9,185) $ (46,855) $ (56,040) $ (9,501) $ (70,434) $ (79,935)
Less:
Other (income) expense, net
 961  319  1,280  (3,840) 496  (3,344)
Add:
Depreciation and amortization expense
 4,838  26,423  31,261  6,214  12,618  18,832 
Purchase accounting fair value adjustment related to inventory
 —  —  —  —  13,645  13,645 
Severance costs
 393  257  650  2,442  38  2,480 
Equity-based compensation expense
 1,897  45,409  47,306  3,145  37,835  40,980 
Transaction expenses
 —  —  —  —  115  115 
Acquisition integration cost —  697  697  445  359  804 
Disposal of long-lived assets
 20  236  256  —  165  165 
Litigation-related expenses —  1,325  1,325  —  —  — 
Capital market and advisory fees 72  —  72  —  —  — 
Reportable Segment Adjusted EBITDA
 $ (2,926) $ 27,173  $ 24,247  $ 6,585  $ (6,155) $ 430 
Reconciliation of reportable segment results to consolidated income (loss) before taxes:
Interest income (expense), net (610) (33,631)
Depreciation and amortization expense (33,924) (20,227)
Severance costs
 (711) (2,529)
Equity-based compensation expense (56,945) (47,591)
Transaction expenses
 (985) (21,126)
All other corporate charges (56,113) (21,260)
Debt financing costs and extinguishment losses
 (4,185) — 
Purchase accounting fair value adjustment related to inventory
 —  (13,645)
Acquisition integration cost (1,035) (1,498)
Disposal of long-lived assets (427) (165)
Litigation-related expenses (1,765) (1,216)
Capital market and advisory fees (6,112) (4,545)
Income (loss) before income taxes
 $ (138,565) $ (167,003)
Capital Expenditures
The following table provides capital expenditures by segment for the nine months ended September 30, 2026 and 2025.
September 30, 2026 September 30, 2025
Capital expenditures
Space
 $ 3,155  $ 5,306 
Defense Tech
 11,539  6,033 
Total segment capital expenditures
 $ 14,694  $ 11,339 
Corporate activities
 4,511  6,088 
Total capital expenditures
 $ 19,205  $ 17,427