Redwire (US:RDW)2025-11-06 21:10Revenue and Profitability - Revenues increased by $34.8 million, or 51%, for the three months ended September 30, 2025, compared to the same period in 2024, primarily driven by $49.5 million of revenues related to the Edge Autonomy acquisition[183] - Gross profit for the three months ended September 30, 2025, was $16.8 million, representing a 40% increase compared to $12.0 million in the same period in 2024[182] - Gross profit decreased by $33.0 million, or 83%, for the nine months ended September 30, 2025, with gross margin dropping to 3% from 17%[195] - Adjusted EBITDA for the three months ended September 30, 2025, was $(2,569) thousand, compared to $2,440 thousand for the same period in 2024[207] Expenses - Selling, general and administrative expenses as a percentage of revenues increased to 49% for the three months ended September 30, 2025, from 26% during the same period in 2024[166] - Research and development expenses increased by 306% to $7.7 million for the three months ended September 30, 2025, compared to $1.9 million in the same period in 2024[182] - SG&A expenses rose by $32.8 million, or 187%, for the three months ended September 30, 2025, increasing as a percentage of revenue to 49% from 26%[186] - Interest expense, net increased by $24.1 million for the nine months ended September 30, 2025, primarily due to $20.0 million related to the repayment of the Seller Note[200] Losses - Net loss increased by $20.2 million for the three months ended September 30, 2025, compared to the same period in 2024, resulting in a net loss attributable to Redwire Corporation of $41.2 million[166][182] - The company recognized a net loss of $(141,079) thousand for the nine months ended September 30, 2025, compared to $(47,142) thousand for the same period in 2024[229] Contracts and Backlog - The book-to-bill ratio increased to 1.25 for the three months ended September 30, 2025, from 0.65 for the same period in 2024[166] - Total contracts awarded for the three months ended September 30, 2025, amounted to $129,800 thousand, compared to $44,503 thousand for the same period in 2024[210] - The contracted backlog as of September 30, 2025, was $355,628 thousand, an increase from $296,652 thousand as of December 31, 2024[216] - Organic backlog at the end of September 30, 2025, was $279,527 thousand, down from $296,652 thousand at the end of December 31, 2024[216] Cash Flow and Financing - Cash and cash equivalents as of September 30, 2025, were $52,300 thousand, with an additional $35,000 thousand available from existing credit facilities[220] - Net cash used in operating activities for the nine months ended September 30, 2025, was $(153,069) thousand, an increase of $128.7 million year-over-year[229] - Net cash used in investing activities increased by $166.2 million for the nine months ended September 30, 2025, primarily due to the Edge Autonomy acquisition and increased capital expenditures[232] - Net cash provided by financing activities increased by $286.6 million during the nine months ended September 30, 2025, driven by net proceeds from the issuance of common stock and exercise of warrants totaling $337.8 million[233] Other Financial Metrics - Other (income) expense, net decreased by $29.4 million for the nine months ended September 30, 2025, primarily due to a gain of $11.5 million from a decrease in the fair value of private warrant liability[201] - The effective tax rate decreased to (15.5)% for the nine months ended September 30, 2025, compared to (0.7)% for the same period in 2024[202] - The company recognized a gain of $11.5 million on the change in fair value of outstanding private warrants during the nine months ended September 30, 2025, compared to a loss of $8.1 million in 2024[231] Operational Highlights - The Company launched a total of 14 PIL-BOXes during the three months ended September 30, 2025, bringing the total number of PIL-BOX launches to 42[166] - The Company was awarded a contract to develop and deliver Roll-Out Solar Arrays for Axiom Space's first commercial space station module[166] - UAS deliveries during the three months ended September 30, 2025, included Stalker systems for the U.S. Army and Penguin systems for the Ukrainian Armed Forces[166] Accounting and Reporting - There were no material changes to critical accounting policies and estimates as disclosed in the audited financial statements[235] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[236] - The increase in non-cash adjustments included depreciation and amortization expense of $11.7 million and share-based compensation of $39.5 million, primarily related to the Edge Autonomy acquisition[231] - The company experienced an increase in deferred tax benefit of $25.9 million year-over-year[231] - The company’s operations in Europe are primarily denominated in euros, limiting foreign currency exposure[234]