York Space Systems Inc (NYSE: YSS) is a space and defense prime contractor that designs, manufactures, and operates small satellites along with associated launch and ground services. Revenue is generated through long-term firm-fixed-price (FFP) production contracts for satellite hardware, launch services, ground services, and recurring satellite-based software and operational support. YSS serves both U.S. federal government agencies and domestic commercial customers, competing against traditional defense and space primes. The company began trading on the NYSE on January 29, 2026, following its IPO, after converting from a Delaware LLC named Yellowstone Midco Holdings II, LLC. Revenue was $116.3 million in Q1 2026, up 9% from $106.3 million in Q1 2025, with a gross margin of 19% in Q1 2026 versus 23% in Q1 2025. The company had cash and cash equivalents of $655.7 million as of March 31, 2026, compared to $162.6 million at the start of the year, reflecting IPO proceeds. YSS was backed by investment funds managed by AE Industrial Partners, LP prior to its IPO.

Revenue model

Substantially all revenue comes from long-term FFP contracts recognized using a percentage-of-completion cost-to-cost method. Primary revenue streams include satellite hardware production, launch services, and ground services, supplemented by recurring satellite-based software, downlink antenna usage, and on-spacecraft upgrade services over the satellite's orbital lifespan of approximately five to six years per replacement cycle. In February 2026, YSS executed a new commercial contract for M-CLASS satellites expected to generate approximately $187 million over the contract term.

Products and services

Products and services include M-CLASS small satellites, launch services, ground services, proprietary on-spacecraft software with upgrade options, downlink antenna access, and continuous operational support throughout the satellite lifecycle. The company has demonstrated Link-16 connectivity from space and claims production capacity to manufacture and test over 1,000 satellites annually.

Customers and end markets

Customers include U.S. federal government-controlled agencies and domestic commercial customers. Contracts are multi-year in duration. YSS has delivered satellites under PWSA (Proliferated Warfighter Space Architecture) programs. End markets include national security, government space programs, and commercial satellite constellations.

Value-chain role

Prime contractor across the full satellite lifecycle: design, manufacture, test, launch coordination, ground station operations, software maintenance, and on-orbit upgrades. The company positions itself to act as prime for replacement of competitors' aging constellations.

Geographic exposure

U.S.-based; substantially all revenue derived from U.S. federal government and domestic commercial customers, per the Q1 2026 10-Q filing.

Source: SEC 10-Q, filed 2026-05-15

Industry: Guided Missiles & Space Vehicles & Parts