A view from the upper stage of the LV0009 rocket during the company’s live stream on March 15, 2022.
Astra / NASASpaceflight
The space sector is at the end of a boom and bust cycle. While many companies batten down the hatches to survive, some publicly traded names are running on fumes.
A flurry of about a dozen space companies have gone public in recent years. Although each has had some pretty dismal stock returns since its debut, the majority are still moving forward and looking to build momentum in the coming year, with some approaching coveted profitability milestones.
However, a trio of names look likely to go the way of Virgin Orbit, which broke ground last year. See who is most at risk of delisting, acquisition or even bankruptcy.
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Momentum
The Momentus Space Tow Operator has it has already warned shareholders that it is running out of money, and earlier this month the company abandoned plans for its next mission.
Once valued at over $1 billion, Momentum it’s been a tumultuous two years. Despite a 1-for-50 stock split last year, its shares are currently trading near 80 cents, putting the company at a $7 million bearish valuation.
The next few weeks will likely prove critical for Momentus to find a major new backer or buyer, or face bankruptcy.
Astra
Astra has raised funding rounds in pieces from a handful of investors over the past two months, as the company has been virtually cash-strapped since October.
The rocket launch business is on hiatus from June 2022 and the acquired spacecraft business is not driving significant revenue growth. And while the company’s founders presented a take-private plan in November, there has been no word from Astra’s board on the proposal.
Once valued at over $2.5 billion, Astra’s valuation has been below $50 million for months.
Following the completion of this take-private deal, it is unclear how the company would be able to escape its desperate cash situation.
Sidus
Sidus Space is a little-known space company that followed a traditional IPO in late 2021 and began trading on the Nasdaq at a valuation of nearly $200 million. Sidus aims to build its own satellite constellation as a test or data platform for various customers.
However, there was minimal revenue growth and increasing annual net losses. While its inaugural satellite was supposed to launch in late 2022, the company has yet to get the spacecraft into orbit, most recently aiming for a March launch.
Sidus has raised small amounts of funding through public stock offerings of $5 million or less since its IPO. But it had less than $2 million in cash at the end of September, trading at a valuation of nearly $9 million, according to FactSet.
Last month, Sidus conducted a 1-for-100 reverse stock split to regain compliance with Nasdaq listing rules.
Momentus, Astra and Sidus did not respond to CNBC’s requests for comment.
Elsewhere in space
A fourth space company in a potentially precarious spot is the satellite imagery company Satellite. Its most recent financial update only dates back to late June. At the time, Satellogic revealed that it was in substantial doubt to survive until September 2024. The company’s stock is currently trading near $1.50, on a $21 million valuation.
Despite the potential turbulence ahead, the space sector as a whole is not necessarily in trouble and continues to attract interest from private markets. Overall, investment in the space sector rebounded in 2023, with companies bringing in $12.5 billion in investment last year.
And while industry analysts predicted a fallout from the flurry of IPOs two years ago, it still hasn’t been as severe as predicted. Many space stocks are below where they were when they hit the market — and in many cases well behind initial financial projections — but most are not at death’s door.
For example, Terran Orbital it won’t be anywhere near the $411 million in 2023 revenue it forecast when it went public three years ago. But despite its share price trading near 80 cents on a $156 million valuation, Terran Orbital appears to have a lifeline from a key customer.
Earlier this month, Terran announced it had received a milestone payment from its biggest customer, Rivada, and, on the same day, said its cash at the end of the year was $70 million, up from $39 million at the end of the third quarter.