Redwire Corp. Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. Redwire Corporation is an integrated space and defense technology company operating in two segments: Space (spacecraft, infrastructure, microgravity) and Defense Tech (autonomous systems, sensors). The quarter reflects the full impact of the Edge Autonomy acquisition completed in June 2025.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $96.97 million | $61.40 million |
| Gross Profit | $25.81 million | $9.04 million |
| Gross Margin | 27% | 15% |
| Net Loss | $(76.50) million | $(2.95) million |
| Adjusted EBITDA | $(9.20) million | $(2.27) million |
| Cash & Equivalents | $144.5 million | $54.2 million |
| Total Debt (Net) | $88.2 million | $85.2 million |
| Backlog | $498.1 million | $411.2 million (Dec 2025) |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 58% year-over-year, driven primarily by $36.4 million in revenue from the Edge Autonomy acquisition and a favorable shift in contract mix.
- Expense Surge: Selling, General, and Administrative (SG&A) expenses jumped 342% to $82.9 million. This was largely due to $42.1 million in accelerated equity-based compensation related to Edge Incentive Units vesting.
- Net Loss Expansion: Net loss widened significantly to $76.5 million from $2.9 million, primarily due to the non-cash equity compensation expense and increased operating costs associated with the new segment.
- Debt Refinancing: The company refinanced its JPMorgan Credit Agreement in February 2026, extending maturity to 2029 and adding a $30 million revolving facility. This resulted in a $2.5 million loss on extinguishment of debt.
- Contract Estimates: Net unfavorable Estimate at Completion (EAC) adjustments reduced gross profit by $1.1 million, primarily due to technical complexity in the Space segment.
Outlook, Risks, and Unusual Items
- Guidance & KPIs: The book-to-bill ratio improved to 1.92, indicating strong future revenue potential. Backlog grew to $498.1 million. Management expects to recognize 68% of remaining performance obligations ($393.4 million) within 12 months.
- Unusual Items: The quarter included a $42.5 million one-time charge for accelerated vesting of Edge Incentive Units. Additionally, a $0.9 million legal settlement reserve was recorded for derivative litigation.
- Risks:
- Internal Controls: The company identified material weaknesses in internal controls over financial reporting for U.S. and European operations, specifically regarding IT general controls and process-level deployment.
- Government Funding: Significant reliance on U.S. government contracts exposes the company to budget deficits and potential shutdowns.
- Geopolitics: Sales to Ukraine may decline if hostilities end or international support shifts.
- Subsequent Events: On May 6, 2026, the company entered a new $350 million At-The-Market (ATM) equity distribution agreement.
Investor Verification Checklist
- Verify the sustainability of the 27% gross margin given the $1.1 million in unfavorable EAC adjustments.
- Assess the timeline and cost for remediating the identified material weaknesses in internal controls.
- Monitor the conversion of the $498.1 million backlog into revenue, noting that 68% is expected within 12 months.
- Review the impact of the $42.5 million non-cash equity charge on future quarters (no remaining expense for Edge Incentive Units).
- Track the utilization of the new $30 million revolving credit facility and the $350 million ATM facility.