NorthStar Posts C$11.58 Per Share in Profit as Quarterly Revenue Jumps to C$17.2 Million
Key Facts
NorthStar Earth & Space reported results on November 12 for the three and nine months ended September 30, posting basic and diluted net income of C$11.58 per share, compared with a loss of C$11.92 per share in the corresponding period of 2025. Revenue was C$17.2 million, up from C$1.4 million in the third quarter of last year. The company said the C$15.8 million year-over-year increase was primarily tied to progress on the 3 CSD program and new awards. It also reported operating income of C$10.4 million and net income of C$7.7 million, following operating and net losses of C$3.1 million and C$6.2 million, respectively, a year earlier. The results relate to Legacy NorthStar before completion of its merger with Viking, defining the entity reflected in the quarter's figures.
The 3 CSD contract was the most prominent direct driver of the result, with the company recognizing C$16.8 million in revenue from the contract during the quarter. It said net income improved primarily as a result of recognizing this revenue, offset by higher operating expenses. The contract accounted for about 98% of total revenue for the period, putting the company's dependence on this customer at the center of the quarter's growth picture. At the end of September, Legacy NorthStar had eight active government contracts in Canada, the United States and Europe. These figures show the geographic breadth of its contract portfolio, while most of the quarter's revenue remained concentrated in one contract.
For the broader period, revenue for the nine months ended September 30 reached C$25.6 million, compared with C$7.5 million in the corresponding period a year earlier. The balance of contracted work not yet recognized as revenue rose to C$10.4 million at the end of September, from C$7.9 million on June 30. The company expected to recognize about 65.4% of that balance as revenue in the following quarter. This balance offers a specific indication of the portion expected to convert into revenue soon, with the outlook still dependent on contract execution and accounting recognition. The company maintained its fiscal 2026 revenue forecast at C$41 million, compared with annual revenue of C$10.6 million in 2025.
The results came alongside a financial position that, before completion of the transaction, included C$0.3 million in cash and cash equivalents and total debt of C$145.1 million on September 30. The company estimated pro forma cash after the merger at about C$33 million, assuming completion of the transaction. It also said Legacy NorthStar generated C$1.8 million in cash from operating activities during the quarter and invested C$0.5 million in capital assets. This operating cash flow and capital investment provide additional context alongside the income figures, while the pro forma liquidity picture differs from the cash balance recorded before completion of the transaction. These financial and operating figures relate to Legacy NorthStar in the period before the merger.
Chief Financial Officer Beth Michelson said the merger proceeds, including PIPE financing, would support completion of the constellation buildout and growth plans. She added: "Our focus now is on disciplined execution, expanding our customer base and driving revenue growth." The company said in its financial statements that management believes available cash, including financing proceeds, is sufficient to fund operations for at least 12 months from the date the interim financial statements were issued. NSTR shares closed at $2.6 on November 12, the day results were announced. The company maintained its 2026 revenue forecast at C$41 million, while the CFO cited expansion of the customer base as one of the next phase's priorities.