Revenues

3 Months Ended

Mar. 31, 2026

Revenue from Contract with Customer [Abstract]

Revenues

Revenues

The table below presents revenues disaggregated by type of customer for the following periods:

	For the three months ended
	March 31, 2026		March 31, 2025
Government	$	114,308	$	100,889
Commercial and other	2,035		5,363
Total revenues	$	116,343	$	106,252

For the three months ended March 31, 2026 and 2025, 99% and 97%, respectively, of the Company’s revenues were derived in the U.S. market. Approximately 99% and 94% of revenues for the three months ended March 31, 2026 and 2025 respectively, were derived from one customer.

Contract balances

	As of
	March 31, 2026		December 31, 2025
Contract assets	$	96,573	$	76,809
Contract liabilities	$	28,565	$	110,275

The increase in contract assets during the three months ended March 31, 2026 was primarily driven by revenue recognized for services rendered that had not yet been billed to the customer.

The decrease in contract liabilities during the three months ended March 31, 2026 was primarily driven by satisfaction of performance obligations for services previously billed to the customer. Revenue recognized during the three months ended March 31, 2026 that was included in the contract liability balance as of December 31, 2025 was $95.6 million. Revenue recognized in the three months ended March 31, 2025 that was included in the contract liability balance as of December 31, 2024 was $62.1 million.

The Company evaluates the contract value and EAC for performance obligations at least quarterly and more frequently when circumstances significantly change. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimate of total revenue and cost at completion is complex, subject to many variables and requires significant judgment by management on a contract-by-contract basis. As part of this process, management reviews information including, but not limited to, labor productivity, the nature and technical complexity of the work to be performed, availability and cost volatility of materials, subcontractor and vendor performance, volume assumptions, inflationary trends, and schedule and performance delays. When the Company’s estimate of total costs to be incurred to satisfy a performance obligation exceeds the expected revenue, the Company recognizes the loss immediately. When the Company determines that a change in estimate has an impact on the associated profit of a performance obligation, the Company records the cumulative positive or negative adjustment to the statement of operations and comprehensive loss. Changes in estimates and assumptions related to the status of certain long-term contracts may have a material effect on the Company’s operating results.

The below table summarizes the (unfavorable) favorable impact of the net EAC adjustments for the following periods:

	For the three months ended
	March 31, 2026		March 31, 2025
Net EAC adjustments, before income taxes	$	(754)	$	565
Net EAC adjustments, net of income taxes	(753)		508
Net EAC adjustments, net of income taxes, per basic and diluted share	$	(0.01)	$	0.01

The net unfavorable EAC adjustments during the three months ended March 31, 2026 were primarily due to the recognition of contract loss reserves, partially offset by lower-than-anticipated labor, materials and subcontractor costs required to meet customer requirements in the Company’s sale of satellites, launch services and ground services. The net favorable EAC adjustments during the three months ended March 31, 2025 were primarily due to the derecognition of loss provision for a terminated contract.

Remaining Performance Obligations

As of March 31, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $642.3 million. The Company expects to recognize over 55% of its remaining performance obligations as revenue within the next 12 months and the balance thereafter.

Deferred Contract Costs

The following table provides information about capitalized contract costs:

	March 31, 2026		December 31, 2025
Capitalized commissions, net	$	5,107	$	6,661

Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract. These costs are capitalized and amortized over the life of the contract consistent with the pattern of transferring the goods to the customer. Amortization of sales commissions is included in selling, general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss and totaled $1.5 million and $2.0 million for the three months ended March 31, 2026 and 2025, respectively. Unpaid sales commissions expected to be paid within the next twelve months are deferred and recorded as deferred commissions, current on the accompanying unaudited condensed consolidated balance sheets. Unpaid sales commissions expected to be paid in greater than a period of twelve months are classified as deferred commissions, less current portion on the accompanying unaudited condensed consolidated balance sheets.

Loss Contracts

The Company recognizes a contract loss when the current estimate of the consideration expected to be received is less than the current estimate of total estimated costs to complete the contract. For purposes of determining the existence or amount of a contract loss, the Company considers total contract consideration, including any variable consideration constrained for revenue recognition purposes. The Company may experience favorable or unfavorable changes to contract losses from time to time due to changes in estimated contract costs and modifications that result in changes to contract prices. The Company recorded a loss of $5.5 million for the three months ended March 31, 2026, within cost of revenues in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss. No losses were recorded for the three months ended March 31, 2025.