Annual report [Section 13 and 15(d), not S-K Item 405]

Segment Reporting

v3.25.4
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting
Note U – 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.

As of December 31, 2025, the Company began operating in two operating segments and two reportable segments, Space and Defense Tech. The Space segment develops and provides next-generation spacecraft, large 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.

Effective December 2025, 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 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 $5.6 million, $4.8 million and $7.0 million of inter-segment sales and costs during the years ended
December 31, 2025, 2024 and 2023, 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 P – Revenues.

The following tables provide a reconciliation of Segment Adjusted EBITDA to consolidated income (loss) before taxes:
Year Ended December 31, 2025
Space
Defense Tech
Total
Revenues
 $ 209,817  $ 125,564  $ 335,381 
Less:
Cost of sales
 202,482  115,614  318,096 
Selling, general and administrative
 19,093  87,205  106,298 
Transaction expenses —  115  115 
Impairment expense
 34,420  265  34,685 
Research and development
 2,977  15,918  18,895 
Reportable segment income (loss) from operations $ (49,155) $ (93,553) $ (142,708)
Less:
Other (income) expense, net
 (4,041) 1,009  (3,032)
Add:
Depreciation and amortization expense
 7,784  22,735  30,519 
Purchase accounting fair value adjustment related to inventory
 —  13,645  13,645 
Impairment expense
 34,420  265  34,685 
Severance costs
 2,817  73  2,890 
Equity-based compensation expense
 4,151  45,891  50,042 
Transaction expenses
 —  115  115 
Acquisition integration cost 593  547  1,140 
Disposal of long-lived assets
 243  404  647 
Reportable Segment Adjusted EBITDA
 $ 4,894  $ (10,887) $ (5,993)
Reconciliation of reportable segment results to consolidated income (loss) before taxes:
Interest expense, net (39,704)
Depreciation and amortization expense (32,639)
Severance costs
 (3,789)
Equity-based compensation expense (58,990)
Transaction expenses
 (21,236)
All other corporate charges(1)
(38,102)
Loss on extinguishment of debt (996)
Impairment expense
 (34,685)
Purchase accounting fair value adjustment related to inventory
 (13,645)
Acquisition integration cost (1,140)
Disposal of long-lived assets
 (647)
Income (loss) before income taxes
 $ (251,566)
(1) All other corporate charges mainly consists of corporate overhead costs maintained at the corporate level. 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.
Year Ended December 31, 2024 Space
Defense Tech
 Total
Revenues
 $ 255,336  $ 48,765  $ 304,101 
Less:
Cost of sales 222,927  36,719  259,646 
Selling, general and administrative 11,971  1,973  13,944 
Transaction expenses 6  —  6 
Research and development 4,333  1,524  5,857 
Reportable segment income (loss) from operations
 $ 16,099  $ 8,549  $ 24,648 
Less:
Other (income) expense, net 334  16  350 
Add:
Depreciation and amortization expense 7,577  2,897  10,474 
Severance costs
 724  63  787 
Equity-based compensation expense 3,049  1,045  4,094 
Transaction expenses
 6  —  6 
Acquisition integration cost 385  —  385 
(Gain) Loss on Sale of Investment, net (1,255) —  (1,255)
Reportable Segment Adjusted EBITDA
 $ 26,251  $ 12,538  $ 38,789 
Reconciliation of reportable segment results to consolidated income (loss) before taxes:
Interest expense, net (13,483)
Depreciation and amortization expense (11,692)
Severance costs
 (867)
Equity-based compensation expense (11,326)
Transaction expenses
 (9,129)
All other corporate charges(1)
(109,493)
Acquisition integration cost (385)
Gain (loss) on sale of investment, net
 1,255 
Income (loss) before income taxes
 $ (116,331)
(1) All other corporate charges mainly consists of corporate overhead costs maintained at the corporate level. 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.
Year Ended December 31, 2023 Space Defense Tech Total
Revenues
 $ 194,000  $ 49,800  $ 243,800 
Less:
Cost of sales 149,298  36,533  185,831 
Selling, general and administrative 13,008  3,392  16,400 
Research and development 4,073  707  4,780 
Reportable segment income (loss) from operations
 $ 27,621  $ 9,168  $ 36,789 
Less:
Other (income) expense, net (687) (261) (948)
Add:
Depreciation and amortization expense 7,713  2,835  10,548 
Severance costs
 99  (27) 72 
Equity-based compensation expense 2,410  1,033  3,443 
Purchase accounting fair value adjustment related to deferred revenue 15  —  15 
Reportable Segment Adjusted EBITDA
 $ 38,545  $ 13,270  $ 51,815 
Reconciliation of reportable segment results to consolidated income (loss) before taxes:
Interest expense, net (10,699)
Depreciation and amortization expense (10,724)
Severance costs
 (313)
Equity-based compensation expense (8,658)
Transaction expenses
 (13)
All other corporate charges(1)
(49,143)
Purchase accounting fair value adjustment related to deferred revenue (15)
Income (loss) before income taxes
 $ (27,750)
(1) All other corporate charges mainly consists of corporate overhead costs maintained at the corporate level. 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.

Capital Expenditures
The following table provides a capital expenditures by segment:
December 31, 2025 December 31, 2024 December 31, 2023
Capital expenditures
Space
 $ 8,393  $ 5,905  $ 4,046 
Defense Tech
 6,483  330  1,874 
Total segment capital expenditures
 $ 14,876  $ 6,235  $ 5,920 
Corporate activities
 8,404  4,681  2,407 
Total capital expenditures
 $ 23,280  $ 10,916  $ 8,327