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

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