🚀 The Space Stock Sell-Off

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The Space Scoop

Week Ended 03.28.2025

Happy Friday! Rocket Lab and Stoke Space are making noise with their NSS launch contract opportunity, 2024 earnings season is (finally) nearing its end, and Axiom is reporting raising “hundreds of millions” in additional investment. Lets dive in.

Market Max-Q

Top Stories

1) Three companies were out this week with Q4 and FY 2024 earnings, while our final two stragglers remain for next week. Takeaways include:

• Intuitive Machines ($LUNR) reported $228M in revenues for FY 2024, nearly triple the prior year, and record backlog of $328M (driven by NASA contracts) on the back of worsening net income of $(384)M. Investors focused on the emphasis of business diversification beyond lunar landers including data services and a positive run-rate adjusted EBITDA by the end of 2025 and full-year 2026.

  • Shares soared +30% on the news, but finished the week only +14%. As for timing, the next IM-3 mission is slated for March 2026 with IM-4 shortly behind in 2027.

• Satellogic ($SATL) reported +28% increase in revenue to $13M for FY 2024 on a widening net income loss of $(116)M and adjusted EBITDA of $(34)M. The company is confident in its capitalization following the $10M private placement, filing of a $150M shelf registration statement and entry into a $50 million at-the-market program.

  • Satellogic also finalized its domestication move to United States from the British Virgin Islands to "provide better visibility to investors and customers and better positions to capture high value growth opportunities. . . to compete for U.S. and allied government contracts,” per CEO Emiliano Kargieman. Shares finished the week muted at -1%.

• Telesat ($TSAT) reported FY 2024 revenue of $571M, lower by -19% from FY 2023 and a cash pile of $711M. Net income fell to $(302)M from $583M due to "impact in foreign exchange rates on the Canadian dollar to US dollar denominated debt, the recognition of C-band proceeds in 2023, higher impairment charges on our orbital slots and certain satellites and reduced revenue."

  • Adjusted EBITDA fell -28% YoY to $384M while contracted backlog remained steady at $1.1B. Shares finished the week -9% lower as investors contemplate Starlink's growing presence.

In Other News

Axiom Raising $100M+

(Bloomberg)

The Company is in advanced talks to raise a new funding round of a "minimum of $100 million" at a $2B pre-money valuation, according to sources familiar with the matter. The specifics of the deal, including the exact amount of the investment, are yet to be finalized. The round will be co-led by 1789 Capital and Type One Ventures.

Sateliot Closes €70M Series B

(Company)

The Spain-based 5G-IoT telecommunications operator will use the capital to fund the deployment of a constellation of 100+ satellites. The round was led by €10M from Hyperion Fund, which capped off previous contributions of €13.8M from SETT and Global Portfolio Investments, €30M from EIB and additional amounts from strategic shareholders.

Ocean Ledger Raises $900K Pre-Seed

(Finsmes)

The London-based geospatial analytics startup provides coastal risk assessment and environmental impact analysis, and the funding will be used to scale adoption of its products. The round was led by Ananda Impact Ventures and Silverstrand Capital.

T2S Acquires Blue Marble

(SatelliteToday)

T2S Solutions acquired Blue Marble Communications, a provider of space-qualified communications and computing technologies, for an undisclosed amount. The transaction was backed by PE firm Madison Dearborn Partners. The acquisition will expand the company's presence as a provider of solutions in space and mission-critical domains.

Chart of the Week

Space Sell-Off Survivors and Victims: Since the Nasdaq set intraday and closing all-time highs on February 19th, the index has pulled back -13.4% through March 28th. In that time, overall US markets and tech/growth stocks have been hit hard, including the space sector.Let's take a look at the names that have held on best and those that have been busted*:

• Winners: KRMN +13%, SATL +6%, SATX -5%

• Losers: LUNR -59%, RDW -59%, BKSY -60%

*Relative to the Nasdaq index performance of -13.4%.

Links

• Planet ($PL) Signs Deal With European Space Agency To Enable the Greek Government• Spire ($SPIR) Hires Alison Engel as Chief Financial Officer• Redwire ($RDW) Awarded NASA Contract To Launch 4 Additional Pharma Drug Investigations to the ISS• Telesat ($TSAT) & ADN Telecom Announce Multi-Year Partnership for LEO Connectivity Across Bangladesh & South Asia• Gravitics Wins $60M SpaceWERX Award for Tactically Responsive Space System• Sidus ($SIDU) Awarded New Purchase Order With R&D Organization in Asia• Rocket Lab ($RKLB) Successfully Deploys Eight Satellites for OroraTech Wildfire Detection Mission• Rocket Lab ($RKLB) & Stoke Space Awarded NSS Launch Phase Three Lane One Fiscal 2025 On-Ramp $5.6B IDIQ Contract

Opinion

• Trump’s Defense Initiative and the Impact on Space Stocks• 3D Printing Will Help Space Pioneers Make What They Need To Colonize the Moon and Mars• Rocket Lab ($RKLB) Ends Mynaric’s ($MYNA) Suffering• Spire ($SPIR): Uncertainty Makes the Company Uninvestable for Now• BlackSky ($BKSY): Strong Growth and Improving Margins• Redwire ($RDW): Why It Might Be 2021 All Over Again

Earnings Calendar

• $SIDU: Mar 31 - After Market Close (Q4)• $SPIR: Mar 31 - After Market Close (Q4)• $LMT: Apr 22 - Before Market Open (Q1)

*Company confirmed dates only.