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

Terran Orbital’s revenue decreased nearly 6% in the second quarter of 2024 as the company’s supply of cash dwindles. 

The satellite manufacturer filed its 10-Q with the Securities and Exchange Commission (SEC) on August 12, but did not publish a press release or hold a call with investors. 

Revenue in the second quarter was $30.3 million, down 5.7% year-over-year. The company reported the decline was due to a decrease in the level of progress in satisfying certain customer contracts.

Net loss was $35.4 million during the quarter. 

Terran Orbital reported that as of July 31, 2024, it had $14.6 million in cash on hand, which will not meet financial obligations over the next year without additional funding. There is a “going concern” about the company’s ability to continue operating. 

The company is pursuing additional sources of capital. Terran Orbital is undergoing a strategic review that began before the start of 2024. 

“We are considering a range of strategic options to address our near-term need for capital including, but not limited to, one or more debt financings, which could take the form of a working capital facility, term loan, receivables financing, or other financing against contract awards to bridge us to expected near-term customer payments on existing and newly-awarded contracts, a sale of the Company, or an alternative strategic relationship,” Terran Orbital said in the 10-Q. 

Earlier this year, Lockheed Martin, the company’s largest customer, placed a bid to acquire the company, then withdrew it. Lockheed Martin represented 71% of the company’s revenue in the first six months of the year. 

Rivada Space Networks, which signed Terran Orbital for an eye-catching $2.4 billion, 300-satellite deal, has paid just $6.2 million to Terran Orbital in the first six months of this year. Rivada paid $4.6 million during the second quarter. 

Terran Orbital removed unpaid Rivada commitments from its backlog. One year ago, backlog was $2.7 billion with the Rivada deal, and backlog is now at $312.7 million. 

The company’s stock dropped 29% on Tuesday after the results were issued. Terran Orbital stock is valued at 46 cents and is at risk of being delisted by the New York Stock Exchange for having a share price under $1.