Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 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 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 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 $0.8 million and $1.1 million of inter-segment sales and costs during the three months ended March 31, 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.
The following tables provide a reconciliation of Segment Adjusted EBITDA to consolidated income (loss) before taxes:
Three Months Ended March 31, 2026
Space
Defense Tech
Total
Revenues
 $ 52,669  $ 44,303  $ 96,972 
Less:
Cost of sales
 47,766  23,398  71,164 
Selling, general and administrative
 4,398  59,902  64,300 
Research and development
 4,508  7,905  12,413 
Reportable segment income (loss) from operations $ (4,003) $ (46,902) $ (50,905)
Less:
Other (income) expense, net
 102  127  229 
Add:
Depreciation and amortization expense
 1,622  8,840  10,462 
Severance costs
 168  87  255 
Equity-based compensation expense
 670  43,240  43,910 
Acquisition integration cost —  225  225 
Reportable Segment Adjusted EBITDA
 $ (1,645) $ 5,363  $ 3,718 
Reconciliation of reportable segment results to consolidated income (loss) before taxes:
Interest expense, net (2,467)
Depreciation and amortization expense (11,250)
Severance costs
 (262)
Equity-based compensation expense (46,735)
Transaction expenses
 (40)
All other corporate charges(1)
(15,675)
Debt financing costs and extinguishment losses
 (2,925)
Acquisition integration cost (225)
Income (loss) before income taxes
 $ (75,861)
(1) All other corporate charges 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.
Three Months Ended March 31, 2025 Space
Defense Tech
 Total
Revenues
 $ 52,133  $ 9,262  $ 61,395 
Less:
Cost of sales 45,155  7,199  52,354 
Selling, general and administrative 3,086  295  3,381 
Research and development 684  47  731 
Reportable segment income (loss) from operations
 $ 3,208  $ 1,721  $ 4,929 
Less:
Other (income) expense, net (1,200) —  (1,200)
Add:
Depreciation and amortization expense 1,998  624  2,622 
Severance costs
 177  —  177 
Equity-based compensation expense 918  150  1,068 
Reportable Segment Adjusted EBITDA
 $ 7,501  $ 2,495  $ 9,996 
Reconciliation of reportable segment results to consolidated income (loss) before taxes:
Interest expense, net (3,594)
Depreciation and amortization expense (3,046)
Severance costs
 (177)
Equity-based compensation expense (2,912)
Transaction expenses
 (3,799)
All other corporate charges(1)
402 
Income (loss) before income taxes
 $ (3,130)
(1) All other corporate charges 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.

Capital Expenditures
The following table provides capital expenditures by segment:
March 31, 2026 March 31, 2025
Capital expenditures
Space
 $ 597  $ 1,864 
Defense Tech
 3,953  100 
Total segment capital expenditures
 $ 4,550  $ 1,964 
Corporate activities
 1,486  2,091 
Total capital expenditures
 $ 6,036  $ 4,055