Redwire Corp

Previous wording

Redwire’s Defense Tech segment focuses on delivering combat-proven autonomous systems, optical sensors, advanced optics, resilient energy solutions and radio frequency payloads that provide intelligence, surveillance, and reconnaissance capabilities for customers including the U.S. Department of War (“DoW”, formerly known as the Department of Defense), U.S. Federal Civilian Agencies and allied governments across multiple domains. Our defense technology offerings include field-proven airborne products and services that have decades of innovation and more than 400,000 flight hours. Key operations include developing and manufacturing Uncrewed Aerial Systems (“UAS”) for commercial, government, and military applications in areas such as surveillance, logistics, reconnaissance, border security, and emergency response. Redwire is committed to delivering innovative space and airborne platforms to help transform the future of multi-domain operations.

Current wording

Redwire’s Defense Tech segment focuses on delivering combat-proven autonomous systems, optical sensors, advanced optics, resilient energy solutions and RF payloads that provide intelligence, surveillance, and reconnaissance capabilities for customers including the U.S. Department of War (“DoW”, formerly known as the Department of Defense), U.S. Federal Civilian Agencies and allied governments across multiple domains. Our defense technology offerings include field-proven airborne products and services that have decades of innovation and more than 400,000 flight hours. Key operations include developing and manufacturing Uncrewed Aerial Systems (“UAS”) for commercial, government, and military applications in areas such as surveillance, logistics, reconnaissance, border security, and emergency response. Redwire is committed to delivering innovative space and airborne platforms to help transform the future of multi-domain operations.

Previous wording

•Backlog increased to $542.1 million as of June 30, 2026 from $411.2 million as of December 31, 2025.

Current wording

•Backlog increased to $619.7 million as of September 30, 2026 from $411.2 million as of December 31, 2025.

Previous wording

The U.S. Government FY (“GFY”) 2027 budget process has commenced with both administration and congressional activity proceeding in the ordinary course. We are not yet able to assess any impact that the GFY 2027 budget will have on Redwire's business. We will continue to monitor developments as the appropriations process continues.

Current wording

The U.S. Government FY (“GFY”) 2027 budget process remains ongoing. As of September 30, 2026, the U.S. federal government is operating under a continuing resolution funding agencies through December 11, 2026. Congress has not yet enacted full-year GFY 2027 appropriations, and we are not yet able to assess any impact that the final GFY 2027 budget will have on Redwire's business. We will continue to monitor developments as the appropriations process continues.

Previous wording

In March 2025, the European Commission introduced the Readiness 2030 package (previously dubbed “ReArm Europe”), to deploy nearly €800 billion over four years for collective defense, including drone systems, missile defense, cyber and autonomous platforms. The package includes a suspension of fiscal constraints allowing up to 1.5% of Gross Domestic Product (“GDP”) to be put toward additional defense spending and launched the €150 billion Safe Action for Europe (“SAFE”) loan facility. During 2026, implementation of the Readiness 2030 initiative continues to advance, including adoption of implementing decisions for multiple member states under the SAFE financing mechanism and expected initial loan disbursements beginning in the second quarter of 2026.

Current wording

During 2026, implementation of the Readiness 2030 initiative continues to advance, including adoption of implementing decisions for multiple member states under the Safe Action for Europe (“SAFE”) financing mechanism and expected initial loan disbursements beginning in the second quarter of 2026.

Previous wording

We operate in a complex and evolving global space and defense environment and our business is affected by geopolitical issues. Russia’s invasion of Ukraine significantly elevated global geopolitical tensions and security concerns, and following the acquisition of Edge Autonomy, a portion of the combined company’s sales are to customers in Ukraine. Those sales have been declining and may continue to decline in the event that the war and hostilities in Ukraine end, decline or change, or as a result of changes in international support for military assistance to Ukraine. Additionally, U.S. involvement in the conflict with Iran may have an impact on U.S. and allied defense spending, but the current impact remains unclear.

Current wording

We operate in a complex and evolving global space and defense environment and our business is affected by geopolitical issues. Russia’s invasion of Ukraine significantly elevated global geopolitical tensions and security concerns, and following the acquisition of Edge Autonomy, a portion of the combined company’s sales are to customers in Ukraine. Those sales may decline in the event that the war and hostilities in Ukraine end, decline or change, or as a result of changes in international support for military assistance to Ukraine. Additionally, U.S. involvement in the conflict with Iran may have an impact on U.S. and allied defense spending, but the current impact remains unclear.

Previous wording

The Company evaluates the contract value and cost estimates at completion for performance obligations no less frequently than quarterly, and more frequently when circumstances significantly change. Changes in contract estimates occur for a variety of reasons including, but not limited to, changes in contract scope, 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. We utilize information available to us at the time when revising our estimates and apply consistent judgment across the full portfolio of programs. The gross unfavorable EAC adjustments for the six months ended June 30, 2026 were primarily due to $16.2 million unfavorable adjustments in the Space segment as a result of an increase in estimates made for the programmatic and technical assumptions based on the nature and technical complexity of the work to be performed to meet customer specifications. The gross favorable adjustments are primarily due to $10.2 million of favorable adjustments in the Defense Tech segment, inclusive of the reversal of loss reserves in the amount of $6.7 million. Refer to Note N – Revenues of the accompanying notes to thecondensed consolidated financial statements for additional information.

Current wording

The Company evaluates the contract value and cost estimates at completion for performance obligations no less frequently than quarterly, and more frequently when circumstances significantly change. Changes in contract estimates occur for a variety of reasons including, but not limited to, changes in contract scope, 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. We utilize information available to us at the time when revising our estimates and apply consistent judgment across the full portfolio of programs. The gross unfavorable EAC adjustments for the nine months ended September 30, 2026 were primarily due to $21.9 million gross unfavorable adjustments in the Space segment as a result of an increase in estimates made for the programmatic and technical assumptions based on the nature and technical complexity of the work to be performed to meet customer specifications. The gross favorable adjustments are primarily due to $13.6 million of favorable adjustments in the Defense Tech segment, inclusive of the reversal of loss reserves in the amount of $9.8 million, and $12.3 million of favorable adjustments in the Space segment. Refer to Note N – Revenues of the accompanying notes to thecondensed consolidated financial statements for additional information.

Previous wording

Cost of sales increased $3.7 million, or 5%, for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. The year-over-year increase in cost of sales was primarily driven by $22.7 million of costs related to the Edge Autonomy Acquisition, which was completed on June 13, 2025 and therefore has minimal comparable amounts year-over-year. This increase was partially offset due to the reversal of $3.2 million in contract loss reserves compared to the establishment of $7.5 million in contract reserves during the same period in 2025, resulting in a $10.7 million decrease in cost of sales. The increase was further offset by a reduction in cost of sales due to a shift in the production cycle associated with certain larger contracts within the Space segment.

Current wording

Cost of sales decreased $12.8 million, or 15%, for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. The year-over-year decrease in cost of sales was primarily driven by a non-cash expense of $11.2 million recognized during the third quarter of 2025 related to the purchase accounting fair value adjustment to inventory for the inventory sold after the Edge Autonomy Acquisition date during that same period, for which is there is no comparable expense in the third quarter of 2026. This decrease was also due to the reversal of $3.0 million in contract loss reserves during the third quarter of 2026 compared to nominal comparable activity during the same period in 2025, resulting in a decrease in cost of sales year-over-year.

Previous wording

Gross profit increased $51.6 million for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. Further, as a percentage of revenues, gross margin increased to 28% for the three months ended June 30, 2026 from (31)% during the same period in 2025. The increase in gross profit and margin was primarily driven by a decrease in net unfavorable EAC adjustments of $25.2 million year-over-year. The increase is also due to $32.3 million of contributed gross profit from the Edge Autonomy acquisition which impacted changes in the contract mix, including increases of contracts with higher margins and the completion or near completion of larger contracts with lower margins. Please refer to Note N – Revenues of the accompanying notes to the condensed consolidated financial statements for additional information related to the Company’s net EAC adjustments.

Current wording

Gross profit increased $18.4 million for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. Further, as a percentage of revenues, gross margin increased to 32% for the three months ended September 30, 2026 from 16% during the same period in 2025. The increase in gross profit and margin was primarily driven by net favorable EAC adjustments of $3.7 million during the third quarter of 2026 compared to net unfavorable EAC adjustments of $8.3 million during the same period in 2025, resulting in an $12.1 million increase year-over-year. The increase is also due to a non-cash expense of $11.2 million recognized during the third quarter of 2025 related to the purchase accounting fair value adjustment to inventory for the inventory sold after the Edge Autonomy Acquisition date during that same period, for which is there is no comparable expense in the third quarter of 2026. The increase was also due to changes in the contract mix, including increases of contracts with higher margins and the completion or near completion of larger contracts with lower margins. Please refer to Note N – Revenues of the accompanying notes to the condensed consolidated financial statements for additional information related to the Company’s net EAC adjustments.

Previous wording

SG&A expenses decreased $12.4 million for the three months ended June 30, 2026, as compared with the same period in 2025. This contributed to a year-over-year decrease of SG&A as a percentage of revenue to 36% for the three months ended June 30, 2026 from 88% for the same period in 2025. The year-over-year decrease was primarily due to the non-recurring $29.6 million expense in 2025 related to the Edge Incentive Units. The decrease was partially offset by an increase of $13.4 million in SG&A expenses, other than equity-based compensation, related to the Edge Autonomy Acquisition, which was completed at the end of the second quarter of 2025 and therefore has minimal comparable amounts year-over-year.

Current wording

SG&A expenses decreased $4.1 million for the three months ended September 30, 2026, as compared with the same period in 2025. This contributed to a year-over-year decrease of SG&A as a percentage of revenue to 42% for the three months ended September 30, 2026 from 49% for the same period in 2025. The year-over-year change is due to a decrease of $5.9 million in equity-based compensation primarily due to the non-recurring $7.0 million expense in 2025 related to the Edge Incentive Units. The decrease was partially offset by an increase in software costs primarily due to the Company’s ongoing efforts to implement enhanced enterprise resource planning systems and other systems across U.S. and foreign operations.

Previous wording

Other (income) expense, net remained materially consistent for the three months ended June 30, 2026, as compared to the same period in 2025.

Current wording

Transaction expenses remained materially consistent for the three months ended September 30, 2026, as compared with the same period in 2025.

Previous wording

Research and development expenses increased $10.8 million during the three months ended June 30, 2026, as compared with the same period in 2025. The increase is primarily related to $6.1 million of costs related the Edge Autonomy Acquisition, which was completed on June 13, 2025 and therefore has minimal comparable amounts year-over-year. The remaining increase is primarily driven by strategic investments in the development of high potential, emerging opportunities within the Space segment.

Current wording

Research and development expenses increased $6.7 million for the three months ended September 30, 2026, as compared with the same period in 2025. The increase is primarily driven by strategic investments in the development of high potential, emerging opportunities within the Space segment.

Previous wording

Interest expense, net decreased $23.0 million for the three months ended June 30, 2026, as compared with the same period in 2025. The decrease was primarily due to the non-recurring interest expense of $20.0 million recognized in 2025 related to the repayment of the Seller Note. The change was also due to a decrease in the effective interest rate year-over-year primarily due to a reduced interest rate on the JPM A&R Credit Agreement, as amended, and the Company no longer holding the term and revolver loans under the Adams Street Credit Agreement. Refer to Note H – Debt of the accompanying notes to the condensed consolidated financial statements for additional information related to the Company’s debt obligations.

Current wording

Interest (income) expense, net decreased from net interest expense of $6.3 million during the third quarter of 2025 to net interest income of $2.7 million for the three months ended September 30, 2026. The decrease is primarily due to a decrease in the effective interest rate year-over-year primarily due to a reduced interest rate on the JPM A&R Credit Agreement, as amended, and the Company no longer holding the term and revolver loans under the Adams Street Credit Agreement which collectively resulted in a year-over-year decrease of $5.2 million in interest expense. Refer to Note H – Debt of the accompanying notes to the condensed consolidated financial statements for additional information related to the Company’s debt obligations. The decrease is further due to interest income of $3.8 million earned on money market funds for which there is no comparable income during the same period in 2025.

Previous wording

The Company recorded tax expense of$1.9 million for thethree months ended June 30, 2026, as compared to a tax benefit of$32.6 million for thethree months ended June 30, 2025. This change in income tax expense isprimarily related to the increase in the valuation allowance for the three months ended June 30, 2026 compared to a decrease in the Company’s valuation allowance for the same period in 2025 and the mix in earnings between U.S. and foreign jurisdictions year-over-year. Refer to Note K – Income Taxes of the accompanying notes to thecondensed consolidated financial statements for further discussion.

Current wording

The Company recorded a tax benefit of$0.4 million for thethree months ended September 30, 2026, as compared to tax expense of$6.9 million for thethree months ended September 30, 2025. This change in income tax expense isprimarily related to a measurement period adjustment recorded for the Edge Autonomy Acquisition during the three months ended September 30, 2025, which reduced the Company’s future taxable income to realize a portion of deferred tax assets resulting in the Company recording tax expense for the three months ended September 30, 2025. Refer to Note K – Income Taxes of the accompanying notes to thecondensed consolidated financial statements for further discussion.

Previous wording

Revenues increased by $90.9 million, or 74%, for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. The year-over-year increase in revenues was primarily related to $85.6 million of revenue related to the Edge Autonomy Acquisition, which was completed at the end of the second quarter of 2025 and therefore has minimal comparable amounts year-over-year. This increase was also due to a decrease in net unfavorable EAC adjustments year-over-year of $12.9 million. Please refer to Note N – Revenues of the accompanying notes to the condensed consolidated financial statements for additional information related to the Company’s net EAC adjustments. The increase was partially offset due to timing in the stage of production cycles year-over-year for certain larger contracts for large space structure offerings in the Space segment. The foregoing resulted in decreased volume of production and therefore decreased revenue compared to the same period in 2025.

Current wording

Revenues increased by $96.5 million, or 43%, for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. The year-over-year increase in revenues was primarily related to $77.9 million of revenue related to the Edge Autonomy Acquisition, which was completed at the end of the second quarter of 2025. This increase was also due to timing in the stage of production cycles year-over-year for certain contracts for large space structure offerings in the Space segment. The foregoing resulted in increased volume of production and therefore increased revenue compared to the same period in 2025. The increase was also due to a decrease in net unfavorable EAC adjustments year-over-year of $22.7 million. Please refer to Note N – Revenues of the accompanying notes to the condensed consolidated financial statements for additional information related to the Company’s net EAC adjustments.

Previous wording

Cost of sales increased $22.5 million, or 17%, for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. The year-over-year increase in cost of sales was primarily driven by $42.0 million of costs related to the Edge Autonomy acquisition, which was completed at the end of the second quarter of 2025 and therefore has minimal comparable amounts year-over-year. This increase was partially offset due to the reversal of $6.9 million in contract loss reserves compared to the establishment of $7.5 million in contract reserves during the same period in 2025, resulting in a $14.3 million decrease in cost of sales year-over-year. The increase was further offset by reduced costs due to a shift in the production cycle associated with certain larger contracts in power generation offerings described above.

Current wording

Cost of sales increased $9.7 million, or 4%, for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. The year-over-year increase in cost of sales was primarily driven by $27.2 million of costs related to the Edge Autonomy Acquisition, which was completed at the end of the second quarter of 2025 and an increase in costs due to a shift in the production cycle associated with certain contracts for large space infrastructure offerings described above. These increases were partially offset due to the reversal of $9.9 million in contract loss reserves compared to the establishment of $6.7 million in contract reserves during the same period in 2025, resulting in a $16.6 million decrease in cost of sales year-over-year. The increases were further offset by a non-cash expense of $13.6 million recognized during the nine months ended September 30, 2025 related to the purchase accounting fair value adjustment to inventory for the inventory sold after the Edge Autonomy Acquisition date during that same period, for which is there is no comparable expense in the nine months ended September 30, 2026.

Previous wording

Gross profit increased $68.4 million for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. As a percentage of revenues, gross margin was 27% and (8)% for the six months ended June 30, 2026 and 2025, respectively. The year-over-year increase in gross margin as a percentage of revenues was partially driven by a decrease in net unfavorable EAC adjustments of $27.2 million year-over-year. The increase is also due to changes in the contract mix, including the completion or near completion of larger contracts with lower margins and increases of contracts with higher margins, impacting the overall contract portfolio gross margin, particularly in the Defense Tech segment. Please refer to Note N – Revenues of the accompanying notes to the condensed consolidated financial statements for additional information related to the Company’s net EAC adjustments.

Current wording

Gross profit increased $86.8 million for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. As a percentage of revenues, gross margin increased to 29% for the nine months ended September 30, 2026 from 3% during the same period in 2025, respectively. The year-over-year increase in gross margin as a percentage of revenues was partially driven by net favorable EAC adjustments of $2.6 million for nine months ended September 30, 2026 compared to net unfavorable EAC adjustments of $(36.6) million during the same period in 2025, resulting in a $39.3 million increase year-over-year. The increase is also due to $50.6 million of contributed gross profit from the Edge Autonomy Acquisition and changes in the contract mix, including the completion or near completion of contracts with lower margins and increases of contracts with higher margins, impacting the overall contract portfolio gross margin, in both the Space and Defense Tech segment. Please refer to Note N – Revenues of the accompanying notes to the condensed consolidated financial statements for additional information related to the Company’s net EAC adjustments.

Previous wording

SG&A expenses increased$51.8 million for the six months ended June 30, 2026, as compared with the same period in 2025 but SG&A expenses as a percentage of revenues decreased to 58%for the six months ended June 30, 2026 from 59%during the same period in 2025. The year-over-year increase in SG&A expenses was primarily driven by an increase in equity-based compensation of $14.4 million, primarily related to the accelerated vesting of the Edge Incentive Units during the six months ended June 30, 2026. The increase is also due to $29.2 million in SG&A expenses, other than equity-based compensation, related to Edge Autonomy for which there is minimal comparable cost in 2025. The increase is also partially due to an increase in depreciation and amortization offset by decreases in professional fees and severance costs.

Current wording

SG&A expenses increased$47.6 million for the nine months ended September 30, 2026, as compared with the same period in 2025 but SG&A expenses as a percentage of revenues decreased to 53%for the nine months ended September 30, 2026 from 55%during the same period in 2025. The year-over-year increase in SG&A expenses was primarily driven by an increase in equity-based compensation of $8.5 million, primarily related to the accelerated vesting of the Edge Incentive Units during the nine months ended September 30, 2026. The increase is also due to $23.9 million in SG&A expenses, other than equity-based compensation, related to the Edge Autonomy Acquisition, which was completed at the end of the second quarter of 2025. The increase is also due to increases in labor costs and software costs primarily due to the Company’s ongoing efforts to implement enhanced enterprise resource planning systems and other systems across U.S. and foreign operations.

Previous wording

Transaction expenses decreased $20.4 million primarily due to costs incurred related to the Edge Autonomy acquisition for the six months ended June 30, 2025, as compared with the same period in 2026, for which there are minimal comparable costs. Please refer to Note C – Business Combinations of the accompanying notes to the condensed consolidated financial statements for additional information related to acquisitions.

Current wording

Transaction expenses decreased $20.1 million primarily due to costs incurred related to the Edge Autonomy Acquisition for the nine months ended September 30, 2025, as compared with the same period in 2026, for which there are minimal comparable costs. Please refer to Note C – Business Combinations of the accompanying notes to the condensed consolidated financial statements for additional information related to acquisitions.

Previous wording

Research and development expenses increased $22.6 million for the six months ended June 30, 2026 as compared with the same period in 2025 primarily due to $14.0 million of costs related to the Edge Autonomy acquisition, which was completed at the end of the second quarter of 2025 and therefore has minimal comparable amounts year-over-year. The remaining increase is primarily driven by strategic investments in the development of high potential, emerging opportunities within the Space segment.

Current wording

Research and development expenses increased $29.3 million for the nine months ended September 30, 2026 as compared with the same period in 2025. The increase is primarily due to $16.0 million of costs related to the Edge Autonomy Acquisition, which was completed at the end of the second quarter of 2025. The remaining increase is primarily driven by strategic investments in the development of high potential, emerging opportunities within the Space segment.

Previous wording

Interest expense, net decreased $24.1 million for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. This decrease was primarily related to $20.0 million of interest expense recognized during the six months ended June 30, 2025 related to the non-recurring repayment of the Seller Note. The decrease is also partially due to lower effective interest rates on the JPM A&R Credit Agreement, as amended, as well as decreased borrowings as the Company no longer has outstanding loans on the Adams Street Credit Agreement. Please refer to Note H – Debt of the accompanying notes to the condensed consolidated financial statements for additional information related to the Company’s debt obligations.

Current wording

Interest (income) expense, net decreased $33.0 million for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. This decrease was primarily related to $20.0 million of interest expense recognized during the nine months ended September 30, 2025 related to the non-recurring repayment of the Seller Note. The decrease is also due to lower effective interest rates on the JPM A&R Credit Agreement, as amended, as well as decreased borrowings as the Company no longer has outstanding loans on the Adams Street Credit Agreement, which collectively resulted in a $8.1 million reduction of interest expense. Please refer to Note H – Debt of the accompanying notes to the condensed consolidated financial statements for additional information related to the Company’s debt obligations. The decrease was also due to interest income of $5.0 million earned during the nine months ended September 30, 2026, on money market funds for which there is no comparable income during the same period in 2025.

Previous wording

The Company recognized $3.7 million as a loss on extinguishment of debt for the six months ended June 30, 2026, related to the write-off of unamortized discount and deferred financing costs associated with the termination of the Adams Street Credit Agreement as well as the refinancing and voluntary prepayment of $40.0 million on the term loans under the JPM A&R Credit Agreement. Please refer to Note H – Debt of the accompanying notes to the condensed consolidated financial statements for additional information related to the Company’s debt obligations.

Current wording

The Company recognized $3.7 million as a loss on extinguishment of debt for the nine months ended September 30, 2026, related to the write-off of unamortized discount and deferred financing costs associated with the termination of the Adams Street Credit Agreement as well as the refinancing and voluntary prepayment of $40.0 million on the term loans under the JPM A&R Credit Agreement. Please refer to Note H – Debt of the accompanying notes to the condensed consolidated financial statements for additional information related to the Company’s debt obligations.

Previous wording

Other (income) expense, net increased by $17.0 million for the six months ended June 30, 2026, from net income to net expense as compared to the six months ended June 30, 2025. This year-over-year change was primarily due to an increase in the loss recognized as a result of an increase in the fair value of the Company’s private warrant liability of $12.1 million and change to a net loss on foreign currency transactions during the six months ended June 30, 2026 compared to a net gain during the six months ended June 30, 2025. Please refer to Note D – Fair Value of Financial Instruments of the accompanying notes to the condensed consolidated financial statements for additional information related to the Company’s private warrants.

Current wording

Other (income) expense, net increased by $30.9 million for the nine months ended September 30, 2026, from net income to net expense as compared to the nine months ended September 30, 2025. This year-over-year change was primarily due to a loss recognized as a result of an increase in the fair value of the Company’s private warrant liability of $14.1 million for the nine months ended September 30, 2026, compared to a gain of $11.5 million recognized during the same period in 2025, resulting in a total $25.7 million increase in other expense. The increase is also driven by a change to a net loss on foreign currency transactions during the nine months ended September 30, 2026 compared to a net gain during the nine months ended September 30, 2025. Please refer to Note D – Fair Value of Financial Instruments of the accompanying notes to the condensed consolidated financial statements for additional information related to the Company’s private warrants.

Previous wording

The effective tax rate changed to 2.2%for thesix months ended June 30, 2026 as compared to(24.7)% for thesix months ended June 30, 2025, primarily related to the increase in the valuation allowance for the six months ended June 30, 2026 compared to a decrease for the same period in 2025 and the mix in earnings between U.S. and foreign jurisdictions year-over-year. Please refer to Note K – Income Taxes of the accompanying notes to thecondensed consolidated financial statements for additional information.

Current wording

The effective tax rate changed to 1.5%for thenine months ended September 30, 2026 as compared to(15.5)% for thenine months ended September 30, 2025, primarily related to the mix in earnings between U.S. and foreign jurisdictions year-over-yearand anincrease in the valuation allowance for the nine months ended September 30, 2026 compared to a decrease for the same period in 2025. Please refer to Note K – Income Taxes of the accompanying notes to thecondensed consolidated financial statements for additional information.

Previous wording

Space segment revenues decreased by $1.5 million, or (3)%, for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. The year-over-year decrease in revenues is primarily related to timing in the stage of production cycles year-over-year for certain contracts in the large space infrastructure offerings. The foregoing resulted in decreased volume of production and therefore decreased revenue compared to the same period in 2025. The decrease was partially offset by a reduction in net unfavorable EAC adjustments of $5.2 million year-over-year.

Current wording

Space segment revenues increased by $14.7 million, or 32%, for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. The year-over-year increase in revenues is primarily related to timing in the stage of production cycles year-over-year for certain contracts in the large space infrastructure offerings. The foregoing resulted in increased volume of production and therefore increased revenue compared to the same period in 2025. The increase was also due to a reduction in net unfavorable EAC adjustments of $9.0 million year-over-year.

Previous wording

Operating income (loss) decreased by $1.3 million for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. Operating margin deccreased to (10)% from (12)% year-over-year. The decrease in operating income (loss) and decrease in margin is partially due to an increase in gross margin as a result of a reduction in the net unfavorable EAC adjustments recognized year-over-year. The increase was partially offset due to increased costs for research and development of $4.8 million year-over-year as a result of the Company investing in high potential opportunities.

Current wording

Operating income (loss) improved to operating income of $0.4 million for the three months ended September 30, 2026, from an operating loss of $(5.7) million for the three months ended September 30, 2025. Operating margin also improved to 1% from (12)% year-over-year. The improvement in operating income (loss) and margin is primarily due to changes in the contract mix, including the completion or near completion of larger contracts with lower margins and increases of contracts with higher margins, impacting the overall contract portfolio gross margin. The improvement is also partially due to a reduction in the impact of net unfavorable EAC adjustments recognized year-over-year. These improvements were partially offset by increased costs for research and development of $4.3 million year-over-year as a result of the Company investing in high potential opportunities.

Previous wording

Segment Adjusted EBITDA decreased by $5.2 million for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. The decrease is primarily due to increased costs for research and development as described above.

Current wording

Segment Adjusted EBITDA increased by $4.7 million for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. The increase is primarily due to the improvement in gross margin as described above partially offset by increased costs for research and development as described above.

Previous wording

Defense Tech segment revenues increased by $56.8 million for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. The year-over-year increase in revenues was primarily due to $49.1 million of revenue related to the Edge Autonomy Acquisition, which was completed on June 13, 2025 and therefore has minimal comparable amounts year-over-year. The increase was also due to net unfavorable EAC adjustment of $8.7 million during the three months ended June 30, 2025 compared to net favorable adjustments during the three months ended June 30, 2026, resulting in an increase of $9.3 million in revenue year-over-year.

Current wording

Defense Tech segment revenues decreased by $9.1 million for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. The year-over-year decrease in revenues was primarily due to a $7.7 million decrease due to timing in the stage of production and shipments year-over-year for UAS offerings. The decrease was partially offset by a decrease in net unfavorable EAC adjustments resulting in an increase of $0.7 million in revenue year-over-year.

Previous wording

Operating income (loss) increased by $53.6 million for the three months ended June 30, 2026, from operating loss to operating income as compared to the three months ended June 30, 2025. Operating margin also increased to 6% from (979)% year-over-year. The increase in operating income (loss) and operating margin is primarily due to an increase in gross in margin to 47% for the three months ended June 30, 2026 from (329)% for the same period in 2025. The increase in gross margin is primarily related to $26.5 million of contributed gross profit related to the Edge Autonomy Acquisition, which was completed on June 13, 2025 and therefore has a minimal comparable amount year-over-year as well as the impact from net favorable EAC adjustments of $3.6 million for the three months ended June 30, 2026 compared to net unfavorable EAC adjustments of $15.9 million for the same period in 2025. The increase is also due to a decrease in equity-based compensation of $29.6 million related to the Edge Incentive Units recorded during the three months ended June 30, 2025 for which there is no comparable cost during the three months ended June 30, 2026, partially offset by a $6.4 million increase in depreciation and amortization as a result of the Edge Autonomy Acquisition, which was completed at the end of the second quarter of 2025 and therefore has minimal comparable amounts year-over-year.

Current wording

Operating income (loss) improved by $18.5 million for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. Operating margin also improved to (8)% from (39)% year-over-year. The improvement in operating income (loss) and operating margin is primarily due to an increase in gross margin to 51% for the three months ended September 30, 2026 from 26% for the same period in 2025. The increase in gross margin is primarily related a non-cash expense of $11.2 million recognized during the third quarter of 2025 related to the purchase accounting fair value adjustment to inventory for the inventory sold after the Edge Autonomy Acquisition date during that same period, for which is there is no comparable expense in the third quarter of 2026. The increase is also due to the impact from net favorable EAC adjustments of $3.0 million for the three months ended September 30, 2026 compared to net unfavorable EAC adjustments of $0.1 million for the same period in 2025. The increase is also due to a decrease in equity-based compensation of $7.0 million related to the Edge Incentive Units recorded during the three months ended September 30, 2025 for which there is no comparable cost during the three months ended September 30, 2026.

Previous wording

Segment Adjusted EBITDA increased by $29.1 million for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. The increase is primarily due to the improved gross margin year-over-year as described above partially offset by increased costs for research and development of $6.1 million year-over-year as a result of the Company investing in high potential opportunities.

Current wording

Segment Adjusted EBITDA increased by $0.8 million for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. The increase is primarily due to the improved gross margin as discussed above partially offset by increased costs for research and development of $2.2 million year-over-year as a result of the Company investing in high potential opportunities.

Previous wording

Space segment revenues decreased by $1.0 million, or (1)%, for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. The year-over-year decrease in revenues is primarily related to timing in the stage of production cycles year-over-year for certain contracts in the large space infrastructure offerings. The foregoing resulted in decreased volume of production and therefore decreased revenue compared to the same period in 2025.

Current wording

Space segment revenues increased by $13.8 million, or 9%, for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. The year-over-year increase in revenues is primarily related to timing in the stage of production cycles year-over-year for certain contracts in the large space infrastructure offerings. The foregoing resulted in increased volume of production and therefore increased revenue compared to the same period in 2025. The increase is also due to a reduction in net unfavorable EAC adjustments of $10.2 million year-over-year.

Previous wording

Operating income (loss) increased by $5.8 million for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. Operating margin also decreased to (9)% from (3)% year-over-year. The increase in operating loss and decrease in operating margin is primarily due to increased costs for research and development of $8.6 million year-over-year as a result of the Company investing in high potential opportunities. The increase in operating loss is partially offset by an increase in gross margin as a result of reduced net unfavorable EAC adjustments recognized during the six months ended June 30, 2026, compared with the same period in 2025.

Current wording

Operating income (loss) decreased by $0.3 million for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. Operating margin remained materially consistent for the nine months ended September 30, 2026 and 2025, respectively. The decrease in operating loss is primarily due to reduced net unfavorable EAC adjustments recognized during the nine months ended September 30, 2026, compared with the same period in 2025 and increased gross margin due to changes in the contract mix, partially offset by increased costs for research and development of $12.9 million year-over-year as a result of the Company investing in high potential opportunities.

Previous wording

Defense Tech segment revenues increased by $91.8 million for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. The year-over-year increase in revenues was primarily due to $85.6 million of revenue related to the Edge Autonomy Acquisition, which was completed on June 13, 2025 and therefore has minimal comparable amounts year-over-year. The increase was also due to net favorable EAC adjustments for the six months ended June 30, 2026 compared to net unfavorable adjustments in the same period of 2025.

Current wording

Defense Tech segment revenues increased by $82.7 million for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. The year-over-year increase in revenues was primarily due to $77.9 million of revenue related to the Edge Autonomy Acquisition, which was completed during the second quarter of 2025. The increase was also due to net favorable EAC adjustments for the nine months ended September 30, 2026 compared to net unfavorable adjustments in the same period of 2025.

Previous wording

Operating income (loss) decreased by $5.1 million for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. Operating margin also decreased to (40)% from (335)% year-over-year. The decrease in operating income (loss) and operating margin is primarily due to an increase in gross in margin to 47% from (102)% year-over-year. The increase in gross margin is primarily related to $43.6 million of contributed gross profit related to the Edge Autonomy Acquisition, which was completed on June 13, 2025 and therefore has a minimal comparable amount year-over-year as well as the impact from net favorable EAC adjustments of $9.3 million for the three months ended June 30, 2026 compared to net unfavorable EAC adjustments of $16.4 million for the same period in 2025. These increases were partially offset by an increase in equity-based compensation of $12.4 million related to the Edge Incentive Units year-over-year and a $14.6 million increase in depreciation and amortization primarily as a result of the Edge Autonomy Acquisition year-over-year.

Current wording

Operating income (loss) decreased by $23.6 million for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. Operating margin also improved to (30)% from (99)% year-over-year. The decrease in operating loss and improvement in operating margin is primarily due to an increase in gross margin to 48% from less than 1% year-over-year. The increase in gross margin is primarily related to $50.6 million of contributed gross profit related to the Edge Autonomy Acquisition, which was completed during the second quarter of 2025. The improvement in gross profit is primarily due to a decrease in cost of sales year-over-year from a non-cash expense of $13.6 million recognized during the nine months ended September 30, 2025 related to the purchase accounting fair value adjustment to inventory for the inventory sold after the Edge Autonomy Acquisition date during that same period, for which is there is no comparable expense in the nine months ended September 30, 2026. The improvement in gross profit is also due to the impact from net favorable EAC adjustments of $12.2 million for the nine months ended September 30, 2026 compared to net unfavorable EAC adjustments of $16.5 million for the same period in 2025. These increases were partially offset by an increase in equity-based compensation of $5.4 million related to the Edge Incentive Units year-over-year and a $16.2 million increase in research and development costs primarily as a result of the Edge Autonomy Acquisition year-over-year and strategic investments in the development of high potential opportunities.

Previous wording

Segment Adjusted EBITDA increased by $32.1 million for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. The increase is primarily due to the increased gross margins as described above partially offset by an increase in research and development costs of $14.0 million as a result of the Company investing in high potential opportunities.

Current wording

Segment Adjusted EBITDA increased by $33.3 million for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. The increase is primarily due to the increased gross margins as described above partially offset by an increase in research and development costs of $16.2 million as a result of the Company investing in high potential opportunities.

Previous wording

Adjusted EBITDA is defined as net income (loss) adjusted for interest expense, net, income tax expense (benefit), depreciation and amortization, impairment expense, transaction expenses, acquisition integration costs, acquisition earnout costs, purchase accounting fair value adjustment related to deferred revenue and inventory, severance costs, capital market and advisory fees, disposal of long-lived assets, litigation-related expenses, equity-based compensation, committed equity facility transaction costs, debt financing costs and extinguishment losses, gains on sale of joint ventures, net of costs incurred, and warrant liability change in fair value adjustment.

Current wording

Adjusted EBITDA is defined as net income (loss) adjusted for interest (income) expense, net, income tax expense (benefit), depreciation and amortization, impairment expense, transaction expenses, acquisition integration costs, acquisition earnout costs, purchase accounting fair value adjustment related to deferred revenue and inventory, severance costs, capital market and advisory fees, disposal of long-lived assets, litigation-related expenses, equity-based compensation, committed equity facility transaction costs, debt financing costs and extinguishment losses, gains on sale of joint ventures, net of costs incurred, and warrant liability change in fair value adjustment.

Previous wording

Our book-to-bill ratio was 1.42 for the three months ended June 30, 2026, as compared to 1.47 for the three months ended June 30, 2025. For the three months ended June 30, 2026 none of the contracts awarded balance relates to acquired contract value. For the three months ended June 30, 2025, the contracts awarded includes $73.7 million of acquired contract value from the Edge Autonomy acquisition.

Current wording

Our book-to-bill ratio was 1.73 for the three months ended September 30, 2026, as compared to 1.25 for the three months ended September 30, 2025. For the three months ended September 30, 2026 and 2025, none of the contracts awarded balance relates to acquired contract value.

Previous wording

Our book-to-bill ratio was 1.52 for the Last Twelve Months (“LTM”) ended June 30, 2026, as compared to 0.87 for the LTM ended June 30, 2025. For the LTM ended June 30, 2026 none of the contracts awarded balance relates to acquired contract value. For the LTM ended June 30, 2025, contracts awarded includes $73.7 million of acquired contract value from the Edge Autonomy acquisition, which was completed in the second quarter of 2025 and included in the Defense Tech segment, and $21.9 million of acquired contract value from the Hera Systems acquisition, which was completed in the third quarter of 2024 and included in the Space segment.

Current wording

Our book-to-bill ratio was 1.63 for the Last Twelve Months (“LTM”) ended September 30, 2026, as compared to 1.05 for the LTM ended September 30, 2025. For the LTM ended September 30, 2026 none of the contracts awarded balance relates to acquired contract value. For the LTM ended September 30, 2025, contracts awarded includes $73.7 million of acquired contract value from the Edge Autonomy Acquisition, which was completed in the second quarter of 2025 and included in the Defense Tech segment.

Previous wording

The following table presents our contracted backlog as of June 30, 2026 and December 31, 2025, and related activity for the six months ended June 30, 2026 as compared to the year ended December 31, 2025:

Current wording

The following table presents our contracted backlog as of September 30, 2026 and December 31, 2025, and related activity for the nine months ended September 30, 2026 as compared to the year ended December 31, 2025:

Previous wording

We view growth in backlog as a key measure of our business growth. Contracted backlog represents the estimated dollar value of firm funded executed contracts for which work has not been performed (also known as the remaining performance obligations on a contract). Our contracted backlog includes $186.2 million and $81.0 million in remaining contract value from contracts which recognize revenue at a point in time as of June 30, 2026 and December 31, 2025, respectively.

Current wording

We view growth in backlog as a key measure of our business growth. Contracted backlog represents the estimated dollar value of firm funded executed contracts for which work has not been performed (also known as the remaining performance obligations on a contract). Our contracted backlog includes $199.0 million and $81.0 million in remaining contract value from contracts which recognize revenue at a point in time as of September 30, 2026 and December 31, 2025, respectively.

Previous wording

Although contracted backlog reflects business associated with contracts that are considered to be firm, terminations, amendments or contract cancellations may occur, which could result in a reduction in our total backlog. In addition, some of our multi-year contracts are subject to annual funding. Management expects all amounts reflected in contracted backlog to ultimately be fully funded. Contracted backlog from international operations was $229.0 million and $193.1 million as of June 30, 2026 and December 31, 2025, respectively. These amounts are subject to foreign exchange rate translations from their respective local currencies to U.S. dollars that could cause the remaining backlog balance to fluctuate with the foreign exchange rate at the time of measurement.

Current wording

Although contracted backlog reflects business associated with contracts that are considered to be firm, terminations, amendments or contract cancellations may occur, which could result in a reduction in our total backlog. In addition, some of our multi-year contracts are subject to annual funding. Management expects all amounts reflected in contracted backlog to ultimately be fully funded. Contracted backlog from international operations was $223.9 million and $193.1 million as of September 30, 2026 and December 31,