Sovereign Momentum Builds As Gen-3 Deployment Unlocks Backlog Potential
 
Outsized Q4 rebound. Revenue reached $35M (+ 16% y/y), making a strong recovery after the Q3 miss. The upside was driven by a new international mission solutions contract, including the sale of a Gen-3 satellite and milestone deliveries on other infrastructure programs.
Mission Momentum. The newly reported segment grew >2.5x y/y to $21M, reflecting rising demand for sovereign ISR capacity.  Quarterly deliveries were lumpy, however, ranging from 4% to 33% of revenues, and 20% on a full-year basis.
Profit recovery underway. Q4 AEBITDA grew 20% y/y to $8.8M, driven by high-margin (>50%) mission solutions deliveries. Full-year AEBITDA was near breakeven at $0.9M, weighed down by $9-11M of incremental LeoStella expenses. We expect 11% margin in 2026 as government procurement normalizes, improving to 24% by 2027 as Gen-3 backlog converts.