10-K: Momentus 2025 Annual Report: Financial Headwinds Continue

Momentus Inc. reports significant net losses and ongoing capital needs in its 2025 annual filing, despite progress in space technology and mission deployments.

Summary

• Momentus Inc. reported a net loss of $30.5 million for the year ended December 31, 2025, an improvement from a $34.9 million net loss in 2024.
• Service revenue decreased by 47% to $1.1 million in 2025, down from $2.1 million in 2024, primarily from engineering services and forfeited customer deposits.
• The company's accumulated deficit reached $438.6 million as of December 31, 2025.
• Cash and cash equivalents increased to $12.8 million as of December 31, 2025, from $1.6 million in 2024, largely due to $34.6 million in net cash provided by financing activities.
• Management concluded that substantial doubt about the company's ability to continue as a going concern exists without the successful implementation of mitigation plans, including raising additional financing, monetizing unutilized capacity, and reducing expenses.
• Momentus has launched four missions to date, deploying 17 customer satellites and providing hosted payload services, with the Vigoride Orbital Service Vehicle (OSV) successfully demonstrated in space and its Microwave Electrothermal Thruster (MET) matured to Technology Readiness Level 9.
• The company effected two reverse stock splits (1-for-14 in December 2024 and 1-for-17.85 in December 2025) to maintain compliance with Nasdaq's minimum bid price requirement.
• A material weakness in internal control over financial reporting was remediated during the fourth quarter of 2025.
• Jon Layman was appointed Chief Legal Officer and Corporate Secretary, effective February 14, 2025.
• The company settled securities class actions for $8.5 million (partially covered by insurance) and reached a settlement for shareholder derivative litigation requiring corporate governance reforms, fully covered by insurance.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a company facing significant financial distress, evidenced by recurring net losses, a substantial accumulated deficit, and ongoing going concern warnings. While there are technological achievements and successful mission deployments, the declining revenue and continuous need for dilutive financing overshadow these positives, indicating a challenging path to profitability.

Positives

• Net loss decreased by 13% from $34.9 million in 2024 to $30.5 million in 2025.
• Cash and cash equivalents significantly increased to $12.8 million in 2025 from $1.6 million in 2024, primarily due to financing activities.
• Successful demonstration of Vigoride OSV in space across four missions, deploying 17 customer satellites and providing hosted payload services, with the MET technology achieving Technology Readiness Level 9.
• Awarded a Direct to Phase II Small Business Innovation Research (SBIR) contract by U.S. Air Force Research Labs SpaceWERX for an in-space flight demonstration of a novel RPO sensor suite scheduled for early 2026.
• Remediated a material weakness in internal control over financial reporting by the fourth quarter of 2025.
• Obtained an FCC license for the Vigoride 7 mission on January 30, 2026, and a temporary NOAA license for the RPO demonstration on February 13, 2026.
• Developed innovative Tape Spring Solar Array (TASSA) with potential for lower cost power and in-space collision protection.
• Developed Microwave Electrothermal Thruster (MET) using safe, environmentally-friendly water propellant, successfully demonstrated on orbit.
• Maintained relationships with leading launch service providers including SpaceX, Relativity Space, Blue Origin, United Launch Alliance (ULA), and Rocket Factory Augsburg (RFA).
• Experienced management team with backgrounds from large organizations such as the U.S. Department of Defense, Raytheon, Lockheed Martin, Maxar, ULA, and Northrop Grumman.
• Holds eight issued U.S. patents and four non-U.S. issued patents as of December 31, 2025, related to water plasma propulsion and other technologies.

Negatives

• Service revenue decreased by 47% from $2.1 million in 2024 to $1.1 million in 2025.
• Incurred significant net losses ($30.5 million in 2025, $34.9 million in 2024) and has an accumulated deficit of $438.6 million, indicating ongoing financial challenges.
• Management concluded that the company may not be able to continue as a going concern without raising additional capital and successfully implementing mitigation plans.
• Net cash used in operating activities increased from $16.6 million in 2024 to $23.3 million in 2025, reflecting a higher cash burn rate.
• Reported a stockholders deficit of approximately $10.0 million as of June 30, 2025, and $0.7 million as of September 30, 2025.
• Required two reverse stock splits (1-for-14 in December 2024 and 1-for-17.85 in December 2025) to maintain Nasdaq's minimum bid price compliance, indicating significant stock price decline.
• Faces risk of delisting from Nasdaq if compliance with the Equity Rule or Minimum Bid Price Requirement is not maintained.
• Outstanding warrants and convertible notes could result in substantial dilution to existing stockholders.
• Incurred a $1.7 million impairment charge related to prepaid design and production services due to underutilization of capacity under the Master Services Agreement with Velo3D, Inc.
• Ongoing legal proceedings include a $1.2 million indemnification claim from former co-founder Lev Khasis (estimated settlement $0.4 million) and a $1.2 million claim from ANV Global Services Inc. for defense costs of former directors/officers.
• Has an obligation to restore office space at 3901 North First Street, with estimated costs of $0.7-$0.8 million, and a landlord claiming $1.4 million plus additional damages.

Risks

• Substantial additional funding is required to finance operations, and adequate financing may not be available when needed, on acceptable terms, or at all.
• The company has incurred significant losses in the past, expects to incur losses in the future, and may not be able to achieve or maintain profitability.
• There is a risk that the company may not be able to continue as a going concern.
• Setbacks experienced during future missions could have a material adverse effect on the business, financial condition, results of operation, and reputation.
• The business is subject to the policies, priorities, regulations, mandates, and funding levels of governmental entities, which may be negatively or positively impacted by any change thereto.
• The company may not be successful in developing new technology, and the technology developed may not meet the needs of customers or potential new customers.
• Operating in highly competitive industries and various jurisdictions across the world may cause the company to reduce its prices.
• The company's limited operating history makes it difficult to evaluate its future prospects and the risks and challenges it may encounter.
• The market for spaceflight and in-space infrastructure services has not been established with precision, is still emerging, and may not achieve the expected growth potential.
• The company may not be able to convert its customer contracts into revenue, as contracts are cancellable by customers for convenience.
• Future revenue and operating results are dependent on the ability to generate a sustainable order rate for products and services and develop new technologies.
• The cyclical nature of the space industry could negatively impact the ability to accurately forecast customer demand and achieve adequate gross margins or profits.
• There is a risk of total loss of satellites, Orbital Service Vehicles, and customer payloads during launch into space, and any insurance may not be adequate to cover losses.
• The business involves significant risks and uncertainties that may not be covered by insurance.
• If spacecraft fail to operate as intended, it could have a material adverse effect on the business, financial condition, and results of operations.
• Revenue, results of operations, and reputation may be negatively impacted if products contain defects or fail to operate in the expected manner.
• The company relies on a limited number of suppliers for certain raw materials, specialized labor, and supplied components, which could impair its ability to fulfill orders or increase costs.
• Intense competition is expected in satellite production, satellite transport, and related services.
• Failure to adequately protect intellectual property rights or if intellectual property applications fail to become issued or registered, the competitive position could be impaired.
• The company may experience warranty claims for failures, schedule delays, or other problems with existing or new products.
• Data breaches or incidents involving technology could damage the business, reputation, and brand and substantially harm results of operations.
• The company is highly dependent on its senior management team and other highly skilled personnel.
• Operating results may fluctuate significantly, making future operating results difficult to predict and potentially causing them to fall below expectations.
• The ability to use net operating loss carryforwards and certain other tax attributes may be limited.
• The company may in the future be subject to substantial litigation, regulatory actions, government investigations, proceedings, and similar actions.
• Restructurings and associated organizational changes may not adequately reduce expenses, may lead to additional workforce attrition, and may cause operational disruptions.
• The pursuit of additional capital and other strategic alternatives will consume a substantial portion of management's time and attention and require additional capital resources, which may be disruptive.
• The company is subject to stringent U.S. export and import control laws and regulations; failure to comply could have a material adverse effect.
• Failure to comply with a wide variety of additional extensive and evolving government laws and regulations could have a material adverse effect.
• Changes in U.S. government policy regarding use of commercial data or space infrastructure/mission providers, or material delay or cancellation of certain U.S. government programs, may have a material adverse effect.
• Contracts with the U.S. government subject the company to risks including early termination, audits, investigations, sanctions, and penalties.
• Failure to comply with Nasdaq's continued listing requirements could result in delisting, limiting the public market for shares and making future financing more difficult.
• The market price of Class A common stock and warrants may be volatile, causing the value of investment to decline.
• Future sales of shares by company officers, directors, other insiders, or existing stockholders may adversely affect the market price of Class A common stock.
• If securities and industry analysts do not publish research or publish inaccurate or unfavorable reports, the stock price and trading volume could decline.
• Charter documents and Delaware law could prevent a takeover that stockholders consider favorable and could also reduce the market price of Class A common stock.
• Exclusive forum provisions in charter documents could limit stockholders' ability to obtain a chosen judicial forum for disputes.
• Future sales and issuances of Class A common stock could cause the stock price to fall.
• Sales of Class A common stock under the at-the-market (ATM) program and equity line of credit (ELOC) could result in substantial dilution and depress the market price.
• Additional capital is needed, and any additional capital sought may not be available in the amount or at the time needed.
• The ability to raise capital through the sale of securities may be limited by the inability to utilize a Registration Statement on Form S-3 until November 2026 due to a late filing.
• Employees and independent contractors may engage in misconduct or other improper activities, which could have an adverse effect.
• Labor-related matters, including labor disputes and shortages of qualified labor, may adversely affect operations.
• Changes in accounting estimates and assumptions could negatively affect financial position and results of operations.

Future Outlook

Momentus expects continued cash consumption as it refines corporate infrastructure, pursues sales and marketing, conducts R&D for satellites and technology, seeks regulatory approvals, manages its workforce, protects intellectual property, complies with public company reporting, and defends against litigation. The company anticipates considerable growth in demand for small satellites, satellite buses, and space transportation services, driven by technology advancements and the emergence of new space-based businesses. The long-term goal is to make Orbital Service Vehicles reusable, requiring further development in Rendezvous and Proximity Operations (RPO) and robotic capabilities. The company plans to file additional prospectus supplements to its Registration Statement to sell more shares under its ATM Sales Agreement if eligible.

Management Comments

• Management has concluded that its mitigation plans alleviate the substantial doubt about the Company's ability to continue as a going concern for at least one year from the date these consolidated financial statements are issued.
• We believe our planned service offerings will increase deployment options for satellite operators and lower their operating costs relative to traditional approaches while also minimizing environmental impact when utilizing our MET with water as a propellant.
• We believe that Vigoride has the ability to deliver fast, versatile, and cost-effective transportation and infrastructure services to our customers.
• We believe our transportation service has the potential to expand our customers deployment options relative to what they could achieve with ride share launch alone, while reducing their costs relative to what they could achieve with a dedicated small launch vehicle.
• We believe our ability to compete successfully as a commercial provider of space transportation, communication, and infrastructure services will depend on several factors including our ability to fully develop, test and validate our technology in space, our ability to establish and maintain a lead in technological advancements, the price of our offerings, customer confidence in the reliability of our offerings, and the frequency and availability of our offerings.
• Momentus believes it can manufacture satellite buses like the M-1000 at a rapid and scalable pace.
• Our management, including our CEO and CFO, has concluded that the consolidated financial statements included in this Annual Report on Form 10-K fairly present, in all material respects, our financial condition, results of operations and cash flows for the periods presented in conformity with GAAP.
• Management concluded that the Company's internal control over financial reporting was effective as of December 31, 2025.

Industry Context

StockSavvy.ai notes that Momentus operates in a rapidly evolving space industry characterized by decreasing launch costs and the advent of smaller, lower-cost satellites. The company's focus on 'last mile' transportation, hosted payloads, and in-orbit servicing aligns with the growing demand for versatile and cost-effective satellite deployment and maintenance, particularly for emerging satellite constellations. The development of reusable OSVs and environmentally-friendly propulsion technology positions Momentus to potentially capitalize on future space-based business models like solar energy generation and space manufacturing, which are anticipated to drive significant demand for infrastructure services. However, the industry remains highly competitive with larger, more resourced players and emerging low-cost competitors.

Comparison to Industry Standards

• Momentus's Microwave Electrothermal Thruster (MET) uses water as a propellant, offering a safe and environmentally-friendly alternative to highly-toxic propellants commonly used in the space industry, differentiating it from traditional chemical propulsion systems.
• The company's 'hub-and-spoke' model for last-mile transportation aims to expand deployment options and reduce costs compared to dedicated small launch vehicles offered by competitors like Firefly and Rocket Lab.
• Momentus's Vigoride OSV has achieved Technology Readiness Level 9 (the highest level) for its MET, demonstrating significant flight heritage, which is a key competitive advantage in a nascent industry where many technologies are still in development.
• The company's M-1000 satellite bus, based on Vigoride technology, competes with offerings from established players like York Space, Terran Orbital, Raytheon Blue Canyon, and Airbus, aiming for high-volume, low-cost production.
• The development of the Tape Spring Solar Array (TASSA) aims to produce power at substantially lower cost than competing solar arrays, potentially offering a cost advantage over standard solar panel technologies used by other satellite manufacturers.

Management Changes

Corporate Governance

Legal Proceedings

• Securities Class Actions: Settled for $8.5 million (at least $4.0 million funded by insurance) on April 23, 2024, resolving claims of material omissions/misrepresentations regarding the Business Combination.
• Shareholder Derivative Litigation: Proposed settlement approved on January 10, 2025, requiring corporate governance reforms and payment of lead plaintiffs' attorneys' fees, litigation expenses, and lead plaintiff service awards, fully covered by the company's insurance policy.
• SAFE Note Litigation (The Larian Living Trust): TLLT claims $4.0 million investment entitled to 59 shares, alleging refusal to provide shares until April 2022 when value dropped significantly (seeking >$7.6 million damages). Company's motion for partial summary judgment denied on January 31, 2024. Court order on April 30, 2025, stated matter would be dismissed for want of prosecution if no proceedings within 30 days; no proceedings instituted by plaintiff since.
• Founder Litigation (Mikhail Kokorich): Mr. Kokorich sought indemnification/advancement for fees in securities class action and SEC civil action. Delaware Court of Chancery granted company's motion to dismiss on May 15, 2023, affirmed by Delaware Supreme Court on November 30, 2023.
• Founder Litigation (Lev Khasis): Mr. Khasis filed a verified complaint on March 24, 2023, seeking indemnification/advancement, which was voluntarily dismissed without prejudice on November 26, 2024. He refiled a verified complaint on March 5, 2026, seeking approximately $1.2 million in expenses, with the company estimating a probable settlement of $0.4 million.
• Delaware Class Actions (Shirley, Lora, Burk): Consolidated under 'In re Momentus Inc. Stockholders Litigation,' these putative class actions do not name the company as a defendant but involve demands for indemnification and advancement from current/former directors and officers. ANV Global Services Inc. (insurer) asserted a $1.2 million claim against the company for indemnification of former SRAC directors/officers; the company made a $0.1 million settlement offer in Class A common stock to each of the three former SRAC directors/officers.
• Indemnification Claims: On July 31, 2024, a legal judgment of $0.5 million (inclusive of interest/expenses) was obtained by certain former employees for advancement/reimbursement of legal expenses, which the company paid in September 2024.
• Lease Restoration: Company has an obligation to restore modifications to its 3901 North First Street facility, with estimated costs not exceeding $0.7-$0.8 million based on construction proposals. The landlord has presented a construction proposal for $1.4 million and is claiming additional damages, which the company disputes. An Asset Retirement Obligation (ARO) of $0.5 million has been recorded.

Related Party Transactions

• On June 21, 2024, the Company issued six promissory notes for an aggregate amount of $0.5 million to participating directors and an officer of the Company. These notes were repaid in full on September 12, 2024.

Stakeholder Impact

• Shareholders: Face significant dilution risk from ongoing equity and convertible debt financings, warrant exercises, and reverse stock splits. Volatility in stock price and potential delisting from Nasdaq pose substantial risks to investment value.
• Employees: Workforce reductions and restructurings may lead to attrition and operational disruptions. Dependence on highly skilled personnel and senior management is critical for business continuity.
• Customers: Mission setbacks, product defects, and delays could harm reputation and lead to loss of future business. Successful technology development and reliable service delivery are crucial for customer confidence and contract retention.
• Suppliers: Reliance on a limited number of suppliers for critical components and raw materials creates supply chain risks, potentially impacting the company's ability to meet manufacturing and operating needs.
• Creditors: Convertible notes and other debt instruments carry risks related to the company's ability to generate sufficient revenue and raise capital to meet its financial obligations.

Next Steps

• Raise additional capital to support operations and growth initiatives and achieve profitability.
• Monetize unutilized capacity under the Master Services Agreement (MSA) with Velo3D.
• Reduce employee headcount and compensation expenses.
• Reduce outside vendor expenses.
• Complete additional submissions to NOAA to obtain a permanent license for the Vigoride 7 RPO demonstration prior to the demonstration.
• Develop additional technologies for reusable Orbital Service Vehicles, including Rendezvous and Proximity Operations (RPO) and robotic operations.
• Continue to refine and operate corporate infrastructure, people, processes, and systems.
• Pursue sales and marketing activities for products and services.
• Pursue further research and development related to satellites and satellite technology.
• Seek regulatory approvals for operation of satellites and vehicles.
• Maintain, expand, and protect intellectual property portfolio.
• Comply with public company reporting requirements.
• Defend against litigation.
• Attempt to resolve claims and negotiate a financial settlement with the sublandlord and landlord regarding lease restoration obligations for the 3901 North First Street facility.

Key Dates

Recommendation

The company faces severe financial challenges, including persistent net losses, a substantial accumulated deficit, and a going concern warning. Despite technological advancements and mission successes, revenue is declining, and the company relies heavily on dilutive financing activities (ATM, ELOC, convertible notes, warrant inducements) to sustain operations. The need for multiple reverse stock splits to maintain Nasdaq listing, coupled with ongoing litigation and significant cash burn from operations, indicates a highly precarious financial position and a high risk of further value erosion for shareholders. The long-term path to profitability and sustainable operations remains highly uncertain.

Keywords

Space Transportation, Satellite Buses, In-orbit Services, Water Plasma Propulsion, Vigoride, Tape Spring Solar Array, SEC Filing, 10-K, Momentus Inc., Aerospace, Space Economy, Small Satellites, Orbital Service Vehicle, Rendezvous and Proximity Operations, Corporate Governance, Financial Reporting, Nasdaq Delisting Risk, Capital Raise, Dilution, Intellectual Property, Government Contracts, Export Controls, Cybersecurity