Terran Orbital facility in Irvine, California. Photo: Terran Orbital

Terran Orbital grew revenue in 2023 by 44% compared to 2022, but the company posted a net loss larger than its revenue. Terran Orbital issued its full year results on Monday as it is going through a “strategic review” after receiving a takeover offer from Lockheed Martin. 

Separately, the company regained compliance with the minimum stock price for the New York Stock Exchange. The company’s stock has been trading at over $1 since late February. 

Terran Orbital reported $135.9 million in revenue in 2023, compared to $94 million in 2022. Net loss was $151.8 million. 

Terran Orbital previously slashed its 2023 outlook, revising the amount it expected from customer Rivada Space Networks. A substantial portion of Terran Orbital’s backlog is due to the Rivada contract — $2.4 billion of the $2.7 billion backlog. 

According to Monday SEC filings, Rivada paid Terran Orbital $6.9 million during 2023. CEO Marc Bell has said that Rivada is up to date on all payments. 

The company ended 2023 with $71.7 million in cash on hand. In the fourth quarter of 2023, Terran Orbital brought in $31.6 million in revenue and reported a net loss of $42.8 million. The company ended the year with approximately $313.8 million in debt obligations. 

Terran Orbital did not hold an investor call to discuss the results, citing the strategic review. 

Lockheed Martin submitted a proposal on March 1 to acquire Terran Orbital for $1 in cash for each share of outstanding common stock, more than $70 million in cash for outstanding warrants, and to assume or repay the company’s debt. Terran Orbital responded by adopting a limited duration stockholder rights plan, which is also known as a “poison pill.”  

The company said the rights plan is “intended to encourage anyone seeking to acquire the company, including Lockheed Martin, to negotiate with the board prior to attempting to impose a transaction that is not in the best interests of the company’s stockholders.” 

Bell commented on the financial results on revenue growth and gross margin improvement. 

“The future of space is responsive, and Terran Orbital is well-positioned to capitalize on this growing market segment. We’re focused on sustainable growth, achieving profitability, and delivering solutions that meet evolving customer needs. Terran Orbital isn’t just keeping pace with disruption, we’re at the forefront, shaping the future of the space economy through responsive space,” Bell said.