Redwire Corporation reported significant financial developments in its 10-Q filing for the third quarter of 2024, highlighting both revenue growth and increased losses compared to the previous fiscal period. For the three months ended September 30, 2024, the company generated revenues of $68.6 million, a 10% increase from $62.6 million in the same period of 2023. For the nine months ended September 30, 2024, revenues rose 30% to $234.5 million, up from $180.3 million year-over-year.
Despite the revenue growth, Redwire experienced a substantial increase in operating and net losses. The operating loss for Q3 2024 was $(12.5) million, compared to $(2.7) million in Q3 2023, marking a 361% increase in loss. The net loss for the same quarter was $(21.0) million, up from $(6.3) million in 2023. For the nine-month period, the net loss escalated to $(47.1) million from $(19.0) million in the prior year.
The increase in losses was attributed to higher costs associated with labor, materials, and subcontractor expenses, particularly in the power generation segment. Additionally, Redwire incurred $1.1 million in transaction costs related to the acquisition of Hera Systems, which was completed on August 30, 2024. This acquisition is focused on enhancing the company’s capabilities in spacecraft development for national security.
On the balance sheet, total assets increased to $289.9 million as of September 30, 2024, up from $271.3 million at the end of 2023. However, total liabilities also rose significantly to $277.7 million, compared to $218.4 million previously, driven by an increase in long-term debt, which reached $121.6 million. The company reported an accumulated deficit of $(280.9) million, widening from $(233.8) million at the end of 2023.
Cash and cash equivalents improved to $43.1 million as of September 30, 2024, compared to $10.9 million a year earlier, reflecting a net increase of $12.8 million in cash for the nine-month period. This was primarily due to increased financing activities, which provided $40.3 million, significantly higher than the $2.3 million in the same period of 2023.
Redwire's operational challenges included unfavorable estimates at completion (EAC) adjustments, which negatively impacted profitability. The company also recognized a loss contingency of $8.0 million related to ongoing litigation. Overall, while Redwire's revenue trajectory shows promise, the financial results indicate ongoing challenges in managing costs and operational efficiency.
About Redwire Corp
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