Stock-based Compensation

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

Omnibus Incentive Plan

On January 28, 2026, in connection with the IPO, the Company adopted the York Space Systems Inc. 2026 Omnibus Incentive Plan (the “Omnibus Plan”). Pursuant to the Omnibus Plan, employees, consultants and directors of the Company and its affiliates performing services for us, including our executive officers, will be eligible to receive awards. The Omnibus Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalents, other stock-based awards, other cash-based awards, substitute awards, and performance awards intended to align the interests of participants with those of our stockholders. Initially, the aggregate number of shares of common stock that may be issued pursuant to the Omnibus Plan shall not exceed 12.7 million shares. Beginning in 2026, the number of shares that may be issued pursuant to the Omnibus Plan is subject to an annual increase on January 1 of each calendar year ending and including 2036, equal to the lesser of (a) 5% of the aggregate number of shares outstanding on

December 31 of the immediately preceding calendar year and (b) such smaller number of shares as is determined by our Board of Directors.

Restricted Stock Awards

In connection with the IPO, the Company issued shares of common stock in connection with the Incentive Unit Distributions. These shares have time-based vesting conditions. These awards contain service conditions associated with continued employment or service. The terms of the restricted stock provide voting and regular dividend rights to holders of the awards. These shares vest over a one or two year vesting schedule. Unvested shares are forfeited if the employee resigns voluntarily or is terminated for cause. Common shares issued to all non-management entities regardless of go-forward employment or Board involvement vested immediately at the date of the IPO.


	Restricted Stock Awards
	Number of RSAs	Weighted Average grant date fair value per share
Non-vested beginning balance December 31, 2025	—	$	—
Granted	4,416,787	34.00
Vested	(2,269,473)	34.00
Forfeited/Cancelled	(71,748)	34.00
Non-vested balance, March 31, 2026	2,075,566	$	34.00

Compensation expense for time-vesting interests granted is based on the grant date fair value. The Company recognizes compensation costs on a straight-line basis over the service period, which is generally the vesting period of the award. Forfeitures are recognized as they occur. Stock-based compensation expense totaled $83.2 million, in the three months ended March 31, 2026. As of March 31, 2026, unrecognized compensation cost totaled $64.5 million. The weighted average remaining period over which the unrecognized compensation cost is to be recognized is 1.8 years as of March 31, 2026.

Restricted Stock Units

Restricted Stock Units with Service-Based Vesting—Under the Omnibus Plan, the Board of Directors has granted restricted stock units ("RSUs") to members of the Board of Directors, executive officers and other key employees. These awards contain service conditions associated with continued employment or service. The terms of the RSUs provide for regular dividend rights to holders of the awards. Upon vesting, the restrictions on the RSUs lapse and shares are issued and considered issued and outstanding for accounting purposes.

In connection with our IPO, the Board granted approximately $21.7 million in RSUs under the Omnibus Plan to certain employees and non-employee directors (collectively, the "IPO Grants"). Each IPO Grant to certain employees will vest in three substantially equal installments on each of the first, second and third anniversaries of the applicable vesting commencement date, subject generally to continued employment through the applicable vesting date.

Further, in January 2026 the Board granted 31,764 RSUs to non-employee directors for their annual service as directors. These RSU grants vest over a one year period.

In measuring compensation expense associated with the grant of RSUs, we use the fair value of the award, determined as the closing stock price for our common stock on the date of grant.

Compensation expense is recorded monthly over the vesting period of the awards. The following table summarizes information for the equity awards granted in 2026:


	Restricted Stock Units
	Number of RSUs	Weighted Average grant date fair value per unit
Non-vested beginning balance December 31, 2025	—	$	—
Granted	731,971	32.43
Forfeited/Cancelled	(4,565)	34.00
Non-vested balance, March 31, 2026	727,406	$	32.42

Compensation expense for time-vesting interests granted is based on the grant date fair value. The Company recognizes compensation costs on a straight-line basis over the service period, which is generally the vesting period of the award. Forfeitures are recognized as they occur. Stock-based compensation expense totaled $1.5 million, in the three months ended March 31, 2026. As of March 31, 2026, unrecognized compensation cost totaled $22.1 million. The weighted average remaining period over which the unrecognized compensation cost is to be recognized is 2.8 years as of March 31, 2026.