The space industry is experiencing a phase of financial difficulty. While many companies are striving to survive, some publicly-traded firms are facing significant challenges. Several space companies have gone public in recent years, but despite lackluster stock performance, most are still making progress and aiming to achieve profitability. However, three companies are facing a situation similar to that of Virgin Orbit, which faced difficulties and experienced a decline in the previous year. Here are the companies most at risk of delisting, acquisition, or even bankruptcy.
Momentus, a space tug operator, has alerted its shareholders about its financial strain. The company recently abandoned plans for its next mission and is running out of money. Despite a stock split last year, its shares currently trade at around 80 cents, resulting in a valuation of $7 million. Momentus is in urgent need of finding a major new backer or buyer to avoid bankruptcy.
Astra, which has been struggling with financial shortages since October, has been raising funds from a few investors over the past couple of months. With its rocket launching business halted since June 2022 and its acquired spacecraft business failing to generate significant revenue growth, Astra’s valuation has plummeted to under $50 million. If the company fails to complete its take-private deal, it is uncertain how it will rise out of its desperate financial situation.
Sidus Space, a lesser-known space company, went public on the Nasdaq in late 2021 at a valuation of nearly $200 million. However, the company has experienced minimal revenue growth and increasing annual net losses. Despite its attempts to raise funds through public stock offerings, the company had less than $2 million in cash at the end of September and was valued at around $9 million. Recently, Sidus underwent a reverse stock split to comply with Nasdaq listing rules in an attempt to improve its financial situation.
Fourthly, satellite imagery company Satellogic is also in a challenging position. Its most recent financial update reveals doubts about its survival through September 2024. With its stock currently trading close to $1.50, the company’s valuation stands at $21 million.
Despite the challenges faced by these companies, the space sector as a whole continues to attract interest from private investors. While some space stocks have not performed as well as expected, the industry as a whole has bounced back in terms of investment, with companies attracting a total of $12.5 billion in investment last year. Although many space stocks are not meeting their original financial forecasts, most are not in imminent danger of collapse.
For example, Terran Orbital may not achieve the $411 million in revenue that it had forecast three years ago when it went public. Nevertheless, the company recently received a milestone payment from its main customer, Rivada, and reported an increase in its cash reserves, from $39 million to $70 million at the end of the year.
