We expect second quarter gap operating expenses to range between $138 million and $144 million, and non-gap operating expenses to range between $120 million and $126 million. The quarter-over-quarter increases are primarily driven by the Monarch acquisition and ongoing Neutron development and spending related to Flight 1, including staff costs, prototyping, and materials.

May 7, 2026 / receipt

Q1 ending R&D headcount was 949, representing a decrease of 70 from the prior quarter. The decrease in dedicated R&D headcount is due to the transition of our production teams from R&D cost centers to production cost centers as we begin the transition from the first Neutron R&D test flight to future revenue generating missions.

May 7, 2026 / receipt, needs a key / Peter Beck, CEO | earnings call 2026-05-07 | transcript 07babf6e-8bdb-41ff-8d23-7e5567cb1eae | chars 24913-25242 | segment 24

We expect second quarter gap operating expenses to range between $138 million and $144 million, and non-gap operating expenses to range between $120 million and $126 million. The quarter-over-quarter increases are primarily driven by the Monarch acquisition and ongoing Neutron development and spending related to Flight 1, including staff costs, prototyping, and materials.

May 7, 2026 / receipt, needs a key / Peter Beck, CEO | earnings call 2026-05-07 | transcript 07babf6e-8bdb-41ff-8d23-7e5567cb1eae | chars 29977-30351 | segment 30

We expect fourth quarter GAAP operating expenses to range between $122 and $128 million, and non-GAAP operating expenses to range between $107 and $103 million. The quarter-over-quarter increases are primarily driven by ongoing Neutron development and spending related to Flight 1, including staff costs, prototyping, and materials.

Nov 10, 2025 / receipt, needs a key / Adam, CFO | earnings call 2025-11-10 | transcript 043cfb51-42af-4268-984c-c7496f57feef | chars 29892-30224 | segment 30

These modest quarter-on-quarter increases at the midpoint of our guidance are to be driven primarily by continued neutron development spending across staff costs, prototyping, and materials, though the spend is beginning to shift from R&D to Flight 2 inventory.

Aug 7, 2025 / receipt, needs a key / Pete, CEO | earnings call 2025-08-07 | transcript e654e16c-bca9-40fb-ba61-3e83b161e10d | chars 25693-25954 | segment 26

I'm encouraged given the impressive progress made towards Neutron's first flight that we're getting closer to moving beyond the past few years of elevated R&D spend and on the path to generating future meaningful operating leverage and positive cash flow.

Aug 7, 2025 / receipt, needs a key / Pete, CEO | earnings call 2025-08-07 | transcript e654e16c-bca9-40fb-ba61-3e83b161e10d | chars 25955-26210 | segment 26

Non-GAAP SG&A expenses increased by $1.1 million, or 8% quarter-on-quarter, mostly driven by increased staff costs, as well as higher travel and marketing costs.

Nov 9, 2022 / receipt, needs a key / Adam Spice, CFO | earnings call 2022-11-09 | transcript e54c61ed-d86e-4870-8295-db9930283c51 | chars 36683-36844 | segment 35

Growth in R&D spend continues to be driven largely by increased staffing and prototyping expenses related to our space systems products and services, neutron development, and continued spend on our launch vehicle automated flight termination systems development efforts.

Feb 28, 2022 / receipt, needs a key / Peter Beck, CEO | earnings call 2022-02-28 | transcript ed7d0209-a8c8-4dc4-a37f-88b63e6abed7 | chars 24155-24425 | segment 24

As previously referenced, the growth rate in R&D investments year-on-year is outpacing the growth rate in SG&A spend by more than 2x. and is driven largely by increased staffing and prototype expenses related to our space systems products and services, neutron development, and continued spend on our launch vehicle automated flight termination systems development efforts.

Nov 15, 2021 / receipt, needs a key / Adam Spice, CFO | earnings call 2021-11-15 | transcript ec357e5d-ce37-4324-b320-d93aa0742ca7 | chars 15719-16092 | segment 15