York Revenue Falls 7% to $84.171 Million as Third-Quarter Losses Surge
Key Facts
York Space Systems reported results on November 12, 2026, for the third quarter ended September 30, posting revenue of $84.171 million, down 7% from $90.763 million in the same period last year. Net loss was $807.398 million, compared with a loss of $20.081 million a year earlier. The company said the loss included a non-cash goodwill impairment charge, so the net figure reflects a significant accounting impact alongside revenue and operating profitability. In the same session, the company's shares closed at $6.6, according to EL7 daily data. The results set declining sales and a narrower margin against the company's indicators of opportunity-pipeline growth and its financial guidance for the year.
The goodwill impairment charge was $749.7 million. The company attributed it to the difficulty of estimating the timing and value of future contracts after 2026 with sufficient certainty. In its filing, it said this difficulty was the reason for the charge, which did not represent cash spending during the quarter. The charge alone therefore exceeded the net loss recorded for the period, while annual revenue remained below the year-earlier level. For the nine months ended September 30, 2026, revenue rose 4% to $293.061 million from $280.854 million in the same period of 2025. The nine-month net loss was $961.583 million, compared with $56.044 million a year earlier, according to the company's filing.
On gross profitability, York posted gross profit of $15.5 million and a gross margin of 18% in the third quarter. The margin was 400 basis points below its level in the third quarter of the previous year, when gross profit was $20.3 million. The company said lower revenue was the main driver of the decline in gross profit, linking weaker sales during the quarter to lower gross returns. In the second quarter of 2026, revenue had risen 10% year over year to $92.547 million, while net loss was $39.343 million. In that filing, the company said a change in government procurement practices had slowed contract starts but could accelerate task orders later; that earlier context preceded the third-quarter revenue decline.
Backlog stood at $581 million on September 30, 2026, and the company said it declined slightly during the quarter. It added that the balance grew through four new contracts and contract modifications worth $17 million, along with increases of $44 million from York subsidiaries. These figures show the components of additions the company said supported backlog, despite its slight quarter-over-quarter decline. Separately, the chief executive said the qualified opportunity pipeline grew by more than 30% from the previous quarter. He added that the company secured the contract positions needed to compete for significant awards in 2027 and beyond, pointing to future competitive opportunities rather than contracts the company had already won.
York valued its government opportunities in the pipeline at $14.9 billion, an increase of $3 billion from June 30, 2026. It said the analysis covers the next two years, making the figure an estimate of government opportunities within a defined time horizon, rather than realized revenue or guaranteed contracts. In its financial guidance, the company narrowed its fiscal 2026 revenue range to $380–400 million. This range estimates what the company expects to achieve during the fiscal year, while government award opportunities still depend on converting competitions into contracts. The company said its preparations to compete include significant awards in 2027 and beyond, alongside growth in its qualified opportunity pipeline during the third quarter.
On liquidity, the company reported $309 million in cash and cash equivalents on September 30, 2026, plus $150 million available through its revolving credit facility. Total reported liquidity was $459 million on that date. These balances provide a picture of cash and available credit at quarter-end, alongside the declines in revenue and margin and the annual guidance. As for the share price on the day results were announced, shares closed at $6.6 on November 12, according to EL7 data; Investing.com also reported that the stock fell 8.84% during regular trading to $6.60, then declined a further 3.71% after the close to $6.355. The filing does not provide specific dates for subsequent results announcements; the milestones mentioned are the fiscal 2026 revenue range, followed by the company's competition for significant awards in 2027 and beyond.