York Space Systems, Inc.

What they do

York designs, produces, integrates and operates spacecraft through a vertically integrated stack, selling turnkey satellites and constellation management over the full mission lifecycle. Its S-CLASS, LX-CLASS and M-CLASS platforms are built on a common modular base, supported by proprietary flight software, edge computing and ground antennas. The company states it has flown 74 missions, created 17 products with flight heritage and logged over four million on-orbit hours.

Revenue drivers

• Government spacecraft programs — York is a prime on U.S. national security space programs including the DoD's Proliferated Warfighter Space Architecture (PWSA), and has been first to deliver and launch satellites for multiple DoW programs. Government programs drove the second quarter 2026 revenue increase.
• Spacecraft platforms (S-CLASS, LX-CLASS, M-CLASS) — Modular satellite platforms sold at a price per satellite York describes as approximately half that of competitors on awarded contracts, with common supply chain across classes.
• Software, mission operations and ground services — Proprietary satellite software, edge computing and mission operations, plus more than 45 ground antennas added through the ATLAS Space Operations acquisition. Contracts historically include fixed software maintenance fees with upgrade options, and York describes an approximately five-to-six-year spacecraft replacement cycle as a source of recurring revenue.
• Backlog and contract vehicles — Backlog was $592.0 million at June 30, 2026, with potential on awarded contracts of $1.85 billion and an identified pipeline exceeding $11.5 billion; York won eight contracts at an approximately 88% win rate year-to-date 2026.

Recent performance

Second quarter 2026 revenue was $92.5 million, up 10% from $83.8 million a year earlier, and first half 2026 revenue was $208.9 million, up 10% from $190.1 million. Q2 gross profit rose 133% to $22.2 million and gross margin reached 24%, up 13 percentage points, largely on the roll-off of a prior-year negative EAC adjustment. Net loss widened to $(39.3) million in Q2 2026 from $(24.2) million, and first half net loss was $(154.2) million versus $(36.0) million. Adjusted EBITDA was $(9.5) million in Q2 2026 and $(13.1) million for the first half. Backlog of $592.0 million was down 8% from $642.3 million at March 31, 2026 but up 9% from the start of the year.

Strategy

York positions itself on price, speed to deployment and capability versus traditional primes, and has expanded through the acquisitions of Emergent Space Technologies (2023), ATLAS Space Operations and Orbion Space Technology. Management describes a shift in U.S. government procurement toward IDIQ vehicles, under which York won six contracts in 2026 that it expects to serve as onboarding positions for larger follow-on operational programs. The company cites missile defense (including Golden Dome), counter-space, space domain awareness, space data networks and space sensing and targeting as its priority national security markets. It reports it is well positioned to win awards by leveraging production capability at scale.

Risks

• Customer and backlog concentration — York's largest customer is the Space Development Agency, and it flags concentration of customers and backlog as a material risk, with backlog declining 8% sequentially in Q2 2026.
• Cost overruns and fixed-price contracts — The company warns it may incur cost overruns, including before final receipt of a contract, requiring it to absorb excess costs and reducing cash flow and profitability; Q2 2025 results included a negative EAC adjustment.
• Government budget and procurement timing — Revenue depends on U.S. government funding and budget priorities, and management attributes its lowered 2026 revenue guidance to waiting on progress against larger programs in the budget.
• Losses and profitability — York reported a $(154.2) million net loss for the first half of 2026 and negative Adjusted EBITDA, and cites failure to manage growth and achieve or maintain profitability as a risk.

Outlook

Management lowered full year 2026 revenue guidance, citing the slower start of the government's IDIQ-based acquisition approach and pending progress on larger budgeted programs. It says the eight contracts won year-to-date are onboarding positions expected to convert into significantly larger operational programs and to be meaningful growth drivers in 2027 and beyond. York points to $592.0 million of backlog, $1.85 billion of potential on awarded contracts and a pipeline exceeding $11.5 billion.