“Q1 marked a strong and focused start to the year, reflecting disciplined execution against our strategic priorities.” (CEO)
“We delivered revenue of $116 million, up 9% year-on-year.” (CEO)
“We expect revenue for the year to be in the range of $545 million to $595 million, up 48% year-over-year at the midpoint.” (CFO)
“ALL.SPACE develops and manufactures next-generation, robust, jam-resistant, multi-band mobile tactical terminals.” (CEO)
“York is well-positioned as we move into the H2 of 2026.” (CEO)
Prepared Metrics
Metric
Value
Speaker/Context
Revenue
$116.3M (+9% YoY)
CFO
Gross margin
19%
CFO
Contribution margin
34%
CFO
Backlog
$642.3M (+18%)
CFO
CapEx
$2.1M
CFO
Adjusted EBITDA
-$3.6M
CFO
Cash & equivalents
$655.7M
CFO
Q&A Batch (1-5 of 9)
Q1 — Peter Arment
Topic: Space Data Network (SDN) budget clarification and York’s positioning
Key points:
Transport Layer capability is enduring, now rolled into SDN; confusion about MILNET sole source is inaccurate.
2027 DoD budget shows SDN backbone at ~$3B, with a separate $800M line item for “multiple vendor procurement”; Congress supports competition.
York’s opportunity in SDN mesh and ground architectures is ~$1.5B (up from prior $200M–$500M for transport), more than tripled.
York has 7 non-SDN mission sets under contract (e.g., advanced fire control, MTI, weather, IDS); total opportunity estimated at $16.3B across unclassified ($8B for MTI), classified ($20.9B), and Golden Dome (~$17.5B).
Mgmt stance: Bullish — budget tripling for SDN and broad mission diversification strongly support growth.
Q2 — Austin Moeller
Topic: National security IDIQs and sole-source vs. competition dynamics
Key points:
Two IDIQs are for operational national security missions, awarded to a very small handful of vendors with proven on-orbit execution and scale production; York is an awardee.
These IDIQs are separate from unclassified Golden Dome IDIQs (with 20–100+ awardees); task orders expected over next couple months.
Sole-source likely continues for proven suppliers (e.g., $25M Starlink terminals in budget), but Congress and military support multiple suppliers for industrial base; focus is scaling from hundreds to thousands.
York’s ALL.SPACE acquisition (multi-beam antenna, 4 beams, GEO/HEO/LEO/MEO) enhances assured comm for tactical capabilities.
Mgmt stance: Bullish — selective IDIQ awards and upcoming task orders signal government confidence; competition trend is favorable.
Q3 — Max
Topic: Capital allocation strategy and M&A rationale
Key points:
Two focus areas: (1) supply chain security (e.g., solar cells from China, Orbion propulsion acquisition); (2) adjacent market expansion via ALL.SPACE for unmanned markets (boats, subs, land vehicles).
Strategy is not about diversifying away from SDN; York has 8 mission sets (SDN is 1), with strong satellite manufacturing capabilities.
ALL.SPACE terminal coupled with York’s global system offers turnkey assured connectivity and autonomy for unmanned systems.
Earnings deck slides 8–10 illustrate the ALL.SPACE ecosystem.
Topic: EAC changes, cost growth, and margin impact
Key points:
Q1 EAC change was negative; driven by a government customer mission where tech teams agreed on technical capability, increasing material and labor costs; York absorbed the cost (~1 point of the 4-point YoY margin decline).
Another ~2 points of gross margin decline YoY from a non-recurring accelerated depreciation charge on a hosted payload satellite (no longer done).
Absent these two non-recurring events, gross margin would have been up slightly YoY and up sequentially from Q4.
Revenue guidance ($545M–$595M) is organic, excluding ALL.SPACE until deal closes.
Topic: Full-year revenue guidance composition and backlog
Key points:
Revenue range $545M–$595M, midpoint $570M; 70% is in backlog (unchanged from March call); 30% is new business.
New business includes a $187M commercial contract signed in Q1, mostly 2027 revenue, with small 2026 contribution.
No large government contract awards expected in Q1 or Q2; second-half event anticipated; BD activity robust.
Government has accelerated procurement: contract vehicles (IDIQs/OTAs) in place, task orders expected in next 1–2 quarters; schedules shortened to ~2 years (from 3+); York’s inventory (20+11 space vehicles) allows immediate revenue recognition upon award.
Mgmt stance: Bullish — backlog solid, government procurement acceleration and inventory position support hitting guidance.