NYSE:RDW
Redwire Corp
A developer of reusable rocket parts and satellite manufacturing solutions targeting the booming commercial space economy.
Key Metrics
Investment Thesis
Bull Case
Investors may view RDW as a high-risk, high-reward play on the exponential growth of the commercial space economy and satellite internet markets. The company's proprietary reusable engine technology offers a potential moat that could lead to future profitability once scale is achieved. Strategic government contracts provide a stable revenue floor during periods of market volatility.
Bear Case
The consistent expansion of net losses from $-130.6M in 2022 to $-226.6M in 2025 signals deteriorating operational efficiency rather than growth-stage scaling. The company has issued over half a billion dollars in shares recently, indicating an inability to fund operations through organic cash flow. A lack of positive operating profit and negative free cash flow makes the stock vulnerable to downside corrections if space sector spending contracts.
About Redwire Corp
Redwire Corp (RDW) is a technology solutions provider specializing in orbital services, space logistics, and aerospace infrastructure. The company primarily serves the commercial space sector by developing reusable rocket components, satellite manufacturing, and mission support systems for government and private clients.
Analysis
Management Discussion
Despite a 109% increase in revenue from $160.5M to $335.4M over five years, Redwire posted a substantial net loss of $226.6M in 2025. The company incurred significant non-cash adjustments and share issuances totaling $518.4M, which partially offset cash burn but highlight an inability to achieve profitability yet. While capital expenditures were moderate at $13.5M, the negative operating cash flow suggests high burn rates relative to current revenue generation.
Industry Overview
The commercial space industry is experiencing rapid expansion driven by demand for broadband internet, earth observation, and private space stations. Companies are transitioning from government-only funding models to mixed commercial-government revenue streams. Success in this sector requires significant upfront capital investment in R&D and manufacturing capabilities before achieving unit economics.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $160.5M | $243.8M | $304.1M | $335.4M |
| Cost of Revenue | $131.9M | $185.8M | $259.6M | $318.1M |
| Gross Profit | $28.7M | $58.0M | $44.5M | $17.3M |
| Operating Expenses | $175.1M | $73.5M | $86.7M | $247.0M |
| Operating Income | $-146.4M | $-15.5M | $-42.2M | $-229.7M |
| R&D | $4.9M | $5.0M | $6.1M | $19.8M |
| G&A | $70.3M | $68.5M | $71.4M | $171.3M |
| Stock-Based Comp | $10.8M | $8.7M | $11.3M | $59.0M |
| D&A | $11.3M | $10.7M | $11.7M | $32.6M |
| Depreciation | $3.3M | $3.5M | $4.1M | $7.8M |
| Amortization | $8.0M | $7.2M | $7.6M | $24.8M |
| Other OpEx | $99.9M | $13.0K | $9.1M | $55.9M |
| Non-Operating Income | $7.9M | $-12.2M | $-74.1M | $-21.9M |
| Pre-Tax Income | $-138.6M | $-27.8M | $-116.3M | $-251.6M |
| Income Tax | $-8.0M | $-486.0K | $-2.0M | $-25.0M |
| Continuing Ops | $-130.6M | $-27.3M | $-114.3M | $-226.6M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-130.6M | $-27.3M | $-114.3M | $-226.6M |
| Minority Interest | $-3.0K | $-1.0K | $4.0K | $0 |
| Net to Common | $-130.6M | $-27.3M | $-114.3M | $-226.6M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $96.2M | $109.3M | $125.9M | $252.8M |
| Cash & Equivalents | $28.3M | $30.3M | $33.7M | $94.5M |
| Accounts Receivable | $26.7M | $32.4M | $21.9M | $37.3M |
| Inventory | $1.5M | $1.5M | $2.2M | $55.8M |
| Prepaid Expenses | $5.7M | $6.4M | $8.0M | $20.5M |
| Other Current Assets | $34.0M | $38.7M | $60.0M | $44.7M |
| Long-Term Assets | $161.5M | $162.0M | $166.7M | $1.20B |
| PP&E (Net) | $12.8M | — | — | — |
| Intangibles | $66.9M | $63.0M | $61.8M | $336.2M |
| Goodwill | $64.6M | $65.8M | $71.2M | $779.1M |
| Operating Leases | $13.1M | $13.2M | $15.3M | $31.7M |
| Other LT Assets | $909.0K | $16.4M | $18.5M | $49.3M |
| Total Assets | $257.7M | $271.3M | $292.6M | $1.45B |
| Current Liabilities | $94.7M | $112.0M | $149.3M | $155.6M |
| Accounts Payable | $17.6M | $18.6M | $32.1M | $32.3M |
| Current Debt | $2.6M | $1.4M | $1.3M | $5.2M |
| Current Leases | $3.2M | $3.7M | $4.4M | $4.1M |
| Deferred Revenue | $29.8M | $52.6M | $67.2M | $60.1M |
| Other Current Liab | $5.0M | $2.8M | $20.2M | $21.9M |
| Long-Term Liabilities | $93.1M | $106.4M | $195.2M | $156.5M |
| Long-Term Debt | $74.7M | $86.8M | $124.5M | $80.0M |
| LT Operating Leases | $12.7M | $12.3M | $13.4M | $30.5M |
| Other LT Liab | $5.7M | $7.3M | $57.3M | $46.0M |
| Total Liabilities | $187.8M | $218.4M | $344.5M | $312.1M |
| Shareholders' Equity | $69.9M | $52.8M | $-51.9M | $1.14B |
| Paid-In Capital | $198.1M | $188.3M | $161.6M | $1.68B |
| Retained Earnings | $-206.5M | $-233.8M | $-348.1M | $-621.8M |
| AOCI | $2.1M | $2.9M | $1.3M | $10.3M |
| Total L&E | $257.7M | $271.3M | $292.6M | $1.45B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-130.6M | $-27.3M | $-114.3M | $-226.6M |
| Non-Cash Adjustments | $83.0M | $-495.0K | $85.0M | $76.3M |
| Working Capital Changes | $16.0M | $29.0M | $11.9M | $-27.0M |
| Cash from Operations | $-31.7M | $1.2M | $-17.3M | $-177.3M |
| Capital Expenditures | $3.6M | $5.6M | $6.4M | $13.5M |
| Cash from Investing | $-37.4M | $-8.3M | $-7.2M | $-175.1M |
| Debt Issuances | $22.7M | $36.7M | $46.0M | $191.1M |
| Debt Repayments | $23.7M | $26.7M | $8.9M | $234.2M |
| Cash from Financing | $76.6M | $9.1M | $43.7M | $397.5M |
| FX Effect | $272.0K | $-2.0K | $-376.0K | $1.0M |
| Net Change in Cash | $7.8M | $2.0M | $18.8M | $46.1M |
| Beginning Cash | $20.5M | $28.3M | $30.3M | $49.1M |
| Ending Cash | $28.3M | $30.3M | $49.1M | $95.2M |
Frequently Asked Questions
How does Redwire Corp make money?
The company's revenue is driven by Orbital Services, which includes reusable rocket engines and propellant tanks; Space Logistics, focusing on satellite manufacturing and deployment; and Mission Support, providing ground systems and engineering services for aerospace clients.
What are the main risks for RDW?
Significant operating losses and a growing retained earnings deficit indicate financial distress that could limit R&D investment. Heavy reliance on contract-based revenue streams creates vulnerability to customer budget cuts or project delays. High levels of goodwill and intangible assets pose valuation risks if the space sector growth slows. Cash flow from operations remains negative, raising concerns about liquidity and the need for continued capital raises.
What is RDW's competitive advantage?
RDW leverages its proprietary reusable rocket engine technology to lower launch costs compared to single-use competitors. The firm benefits from deep partnerships with major government space agencies and commercial launch providers. Its agile manufacturing approach allows for rapid iteration of satellite bus designs in response to market demand.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.