Breaking Down Momentus Inc. (MNTS) Financial Health: Key Insights for Investors

If you're looking at Momentus Inc. (MNTS) right now, you need to cut through the hype of the commercial space sector and face the hard numbers, because the picture is defintely precarious. For the second quarter of fiscal year 2025, the company reported a revenue of just $191,000, a sharp 84.2% drop from the same quarter last year, which tells you the core business is struggling to gain traction. Still, they managed to narrow the net loss slightly to $-6.45 million in Q2 2025, but that cost control is a small win against a massive liquidity challenge: as of June 30, 2025, the company's cash and cash equivalents stood at a mere $0.1 million, which is a red flag for a company with a market capitalization of roughly $20.6 million as of late October 2025. Honestly, management itself has raised substantial doubt about the company's ability to continue as a going concern over the next twelve months, so the question isn't about growth, but about immediate survival and whether a capital raise is imminent to cover the burn rate.

Revenue Analysis

You're looking at Momentus Inc. (MNTS) because the space infrastructure market is hot, but the company's recent revenue figures tell a story of significant near-term contraction that you must factor into your valuation models.

The direct takeaway is that Momentus's Trailing Twelve-Month (TTM) revenue, as of June 30, 2025, stood at just $905.00K. This figure represents a dramatic year-over-year decline of approximately -70.65%, which is a clear red flag for a growth-stage company in a capital-intensive industry.

Understanding Momentus Inc.'s Primary Revenue Streams

Momentus Inc. operates in the commercialization of space, offering in-space infrastructure services. Their revenue is generated primarily through two channels: Service Revenue and, to a lesser extent, product sales like satellites and components.

The core business is focused on three critical functions in the new space economy: Space Transportation, Payload Hosting, and In-Orbit Servicing. Historically, a major driver of their Service Revenue has been contracts like the engineering services performed for the Space Development Agency agreement, which underpinned the full-year 2024 Service Revenue of around $2.1 million. That's the kind of concrete contract performance you want to see, but the 2025 trend is moving the wrong way.

• Service Revenue: Space transportation, payload hosting, on-orbit servicing.
• Product Offerings: Sales of satellites, satellite buses, and components.
• Near-Term Headwind: Recent revenue drops are tied to reduced contract performance and customer deposit forfeitures.

Year-Over-Year Revenue Contraction and Historical Trends

The sharp drop in 2025 revenue signals a severe operational challenge, not just a market slowdown. The Q2 2025 revenue (ending June 30, 2025) was only $191.00K, a staggering -84.2% decrease from the $1.21 million reported in the same quarter of the prior year.

Here's the quick math: A company with a TTM revenue of $905K is not scaling; it's shrinking fast. This is a massive reversal from the 2023 fiscal year, where annual revenue peaked at $3.09 million, representing a monumental +933.11% increase from 2022. That 2023 spike was an anomaly driven by specific contract execution, and the current trend is a return to-or below-pre-growth levels.

Segment Contribution and Significant Changes

What this estimate hides is the precarious nature of their revenue mix. The majority of the 2024 revenue was service-based, but the recent decline is specifically attributed to reduced contract performance and customer deposit forfeitures. This suggests a high-risk revenue profile where a few key contracts or missions dictate the entire top line. When those contracts falter, revenue evaporates.

The immediate risk is that the company's ability to continue as a going concern (a fundamental accounting concept meaning a business can meet its obligations) is under substantial doubt, primarily due to insufficient revenues and cash flows. They are actively trying to raise additional capital through equity or debt to fund operations, which will likely lead to further shareholder dilution. You can find more details on this situation in the full post: Breaking Down Momentus Inc. (MNTS) Financial Health: Key Insights for Investors.

Next Step: Start by modeling a worst-case scenario where TTM revenue stabilizes near the current $905K level for the next four quarters, and then assess the cash burn against that reality.

Profitability Metrics

You need to know the hard numbers on Momentus Inc. (MNTS) to make a clear investment decision, and honestly, the profitability picture is tough. The company is still in a high-burn, pre-scale phase, meaning its gross margins look deceptively good, but the operating and net margins are deeply negative. This isn't a surprise for a deep-tech space company, but the scale of the losses is a crucial factor.

For the Trailing Twelve Months (TTM) ending mid-2025, Momentus Inc.'s revenue was only about $0.91 million. Here's the quick math on their core profitability ratios, which tell a story of high-cost operations despite a high-margin product.

The gross profit margin of nearly 92.49% is fantastic on paper. It means that for every dollar of revenue, only about 8 cents are spent on the direct cost of delivering the service. That's a strong sign the core service-in-space infrastructure-has a high value proposition and a low variable cost once the infrastructure is built.

But still, the massive gap between gross and operating margin is the real risk. The TTM Operating Income was a loss of $26.52 million, which translates to that staggering -2,930.5% Operating Margin. This is where the operational efficiency analysis comes in: the company is spending a fortune on Research & Development (R&D) and Selling, General, and Administrative (SG&A) expenses to build out its capabilities and secure future contracts. You're looking at a company spending nearly 30 times its revenue on overhead and growth. That's a huge burn rate.

The trend in profitability is a clear downward slope on the net income line. For the second quarter of 2025 alone, revenue plummeted to just $0.2 million, down from $1.2 million in the same quarter a year ago, showing difficulties in meeting operational targets and fulfilling customer commitments. The Net Income loss for the TTM period was $32.24 million. This poor financial performance, characterized by high operating losses and a weak balance sheet, highlights significant risks for investors.

To be fair, the industry average is positive, but Momentus Inc. is not a mature space company; it's a high-growth, pre-profit company. The comparison to the industry average Net Profit Margin of 7.48% simply confirms that this is a long-term, speculative bet on future scale. The high gross margin is the only real positive, suggesting that if they can dramatically cut operating expenses or, more realistically, scale revenue by 100x, the business model could work. The need for substantial capital infusion is defintely high for long-term viability.

• Gross Margin is strong, but misleading.
• Operating losses are the primary drain.
• Revenue decline is a near-term red flag.

For a deeper dive into the balance sheet and valuation, check out the full post at Breaking Down Momentus Inc. (MNTS) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You're looking at Momentus Inc. (MNTS) and trying to understand its balance sheet, and the first thing that jumps out is the debt-to-equity ratio. For a capital-intensive, pre-revenue company like this, the financing story is always complicated, but the bottom line is clear: Momentus Inc. is currently operating with a negative shareholder equity position.

As of mid-2025, the company's total debt sits in a manageable range, reported between $4.6 million and $5.27 million. However, its total shareholder equity is approximately $-10.0 million. This means the company's total liabilities exceed its total assets, which is a serious indicator of financial distress. Because of this negative equity, the debt-to-equity (D/E) ratio is also negative, clocking in around -0.529.

A negative D/E ratio is not a standard benchmark; it's a red flag.

Here's the quick math on how this compares to the broader sector:

• Momentus Inc. (MNTS) D/E: -0.529 (Negative Equity)
• Aerospace & Defense Industry Average D/E: 0.35
• Satellite Services Peer (EchoStar) D/E: 4.4

While the average for the capital-intensive space industry can swing wildly-EchoStar's D/E is 4.4, indicating high leverage-Momentus Inc.'s negative equity puts it in a fundamentally different risk category. This balance sheet structure forces the company to rely heavily on expensive, dilutive financing.

Recent Debt and Equity Actions Signal Urgency

The company's recent financing activities in 2025 show a clear pattern of prioritizing immediate liquidity over minimizing future shareholder dilution. They are using a mix of high-cost debt and equity to manage short-term obligations and fund operations.

• Debt Refinancing: In September 2025, Momentus Inc. amended two secured convertible notes, extending the maturity dates for a total outstanding principal of about $3.0 million. Crucially, this included a $1 million repayment due by December 1, 2025.
• High-Cost Borrowing: In May 2025, the company took on a loan of up to $1.5 million with a very high 18% interest rate, a sign that traditional, lower-cost credit is unavailable.
• Dilutive Equity: To raise capital, the company has leaned on equity. In June 2025, it announced a $4 million at-the-market offering of common stock and warrants. The September convertible note amendment also introduced conversion terms that could cause significant equity dilution, allowing the debt-holder to convert principal into stock at a floor of $0.20 per share.

This aggressive use of equity and high-interest debt is a necessary evil for a company with negative equity. It creates a cash runway but at the cost of substantial dilution for existing shareholders, which is a key risk you must factor into your valuation. The complexity of these financial moves, particularly the accounting for warrants tied to the September equity purchase agreement, even led to a delay in the Q3 2025 financial report filing.

The current financing strategy is a survival mechanism, not a long-term capital structure plan. For a deeper dive into what they are trying to achieve with this capital, you should review their stated goals in the Mission Statement, Vision, & Core Values of Momentus Inc. (MNTS).

Liquidity and Solvency

You need to know if Momentus Inc. (MNTS) can cover its near-term obligations, and the quick answer is that the company faces significant liquidity challenges. The key metrics-Current Ratio, Quick Ratio, and negative working capital-all point to a precarious short-term financial position, meaning the company is burning cash faster than it generates it and will need to raise more capital soon.

Assessing Momentus Inc.'s Liquidity Position

A look at the most recent available figures, Trailing Twelve Months (TTM) ending June 30, 2025, shows a clear liquidity crunch. The current ratio, which measures the ability to cover short-term liabilities with short-term assets, sits at a low of only 0.22. A ratio below 1.0 is a red flag, and 0.22 is defintely a flashing light. This means Momentus Inc. has only $0.22 in current assets for every dollar of current liabilities.

The quick ratio (or acid-test ratio), which excludes less liquid assets like inventory, is even more alarming at just 0.02. This tells you that the company's most liquid assets-cash and receivables-can cover only a tiny fraction of its immediate debts. This is a classic sign of a company in a high-growth, pre-profit phase that is heavily reliant on external funding to keep the lights on.

• Current Ratio (TTM): 0.22
• Quick Ratio (TTM): 0.02
• Working Capital (TTM): -$14.71 million

Working Capital and Cash Flow Trends

The working capital trend is negative and a major concern. For the TTM period ending June 2025, Momentus Inc.'s working capital stands at a deficit of -$14.71 million. This negative figure confirms the ratio analysis: current liabilities far exceed current assets, putting pressure on the company to manage payables aggressively or secure immediate funding.

The cash flow statement overview for the TTM period ending June 30, 2025, shows where the cash is going. The company's operations are a significant cash drain:

The negative Operating Cash Flow (CFO) of -$17.66 million is the primary driver of the liquidity risk. It shows that the commercial space business, while promising, is not yet self-sustaining. The small positive Investing Cash Flow (CFI) of $0.13 million suggests minimal capital expenditure, which can be a double-edged sword: it saves cash now but may signal underinvestment in future growth assets.

Liquidity Concerns and Near-Term Actions

The overall picture is one of high financial risk. The company's survival hinges on its ability to execute its financing strategy. This is particularly evident in the preliminary Q3 2025 results, which showed a net loss widening to -$28.1 million (for the nine months ended September 30, 2025) due to a loss on debt extinguishment and other expenses related to amendments of convertible notes and warrant issuances. This kind of activity-restructuring debt and issuing warrants-is a classic sign that the company is actively using financing cash flow to plug the gap left by negative operating cash flow.

For investors, the action is clear: closely monitor the company's progress on its stated business goals and its ability to secure new funding. You need to see a credible path to positive cash flow from operations, or at least a clear runway of financing to support the current cash burn rate. The company's long-term viability depends on its commercial success, which you can read more about in their Mission Statement, Vision, & Core Values of Momentus Inc. (MNTS).

Valuation Analysis

You're looking at Momentus Inc. (MNTS) and trying to figure out if the stock is a bargain or a value trap, which is a smart move given its volatility. The direct takeaway is that traditional valuation metrics are largely unhelpful right now because the company is in a pre-profit, high-burn phase, so you must rely on growth potential and cash runway.

Momentus Inc. is currently a difficult stock to value using standard multiples because it is not profitable. The company's financial health, as of the trailing twelve months (TTM) ending mid-2025, shows a net loss of approximately -$32.24 million on revenue of only $905,000. This unprofitability means the common Price-to-Earnings (P/E) ratio is negative and therefore not a meaningful comparison tool for investors.

The Price-to-Book (P/B) ratio is also essentially unusable. Why? Because the company has negative shareholders' equity, or a negative book value, of around -$9.97 million. This signals that liabilities exceed assets, a critical risk factor for any early-stage company. The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is similarly distorted, coming in at a negative range of approximately -0.59x to -0.6x, since the TTM Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is negative at roughly -$25.46 million. Here's the quick math: when the denominator is negative, the resulting ratio is unreliable for relative valuation.

The stock price trend over the last 12 months tells a stark story. As of November 2025, the stock has plummeted by over 92.58%, with the price dropping to around $0.78 per share from a 52-week high of $11.70. This massive decline reflects significant investor concern over execution and the company's ability to achieve commercial scale. The volatility is extreme, and it's defintely not for the faint of heart.

For income-focused investors, there is no dividend yield to consider; Momentus Inc. pays a 0.00% dividend, which is expected for a company focused on reinvesting all capital into research and development (R&D) and operations. The company is not expected to initiate a dividend anytime soon given its cash burn rate.

So, what does the market think? Analyst consensus on Momentus Inc. is currently a Hold rating, with a median price target of $1.00. This suggests analysts see minimal near-term upside from the current price, but also aren't universally calling for a sell-off. This 'wait-and-see' approach is common for high-risk, high-reward space ventures.

Here is a summary of the key valuation metrics as of the 2025 fiscal year data:

If you want to dig deeper into who is holding the bag and why, you should be Exploring Momentus Inc. (MNTS) Investor Profile: Who's Buying and Why?

• Stock is down 92.58% in the last 12 months.
• Market Cap is around $8.02 million to $10.27M.
• TTM Revenue is only $905,000.

The action here is to shift your focus from valuation multiples to operational milestones. Look for concrete progress on new contracts, successful mission deployments, and, most importantly, a clear path to reducing that cash burn. That's what will change the stock price.

Risk Factors

You need to look past the excitement of the 'New Space Economy' and focus on the cold, hard numbers for Momentus Inc. (MNTS). The direct takeaway is that the company faces an existential financial risk-a going concern issue-driven by insufficient revenue generation and a high cash burn rate, which overshadows all other operational and market challenges.

Honestly, the biggest near-term risk is simply running out of money. The company's own annual report filed in April 2025 stated there is substantial doubt about its ability to continue as a going concern due to insufficient revenues and cash flows. This isn't corporate filler; it's a critical disclosure that should drive your entire investment thesis.

Financial and Liquidity Risks: The Cash Runway

Momentus Inc. is a capital-intensive business in an emerging market, and the financial risks are paramount. For the nine months ended September 30, 2025, the company reported a net loss of approximately $(28.1) million, an increase from the $(23.1) million net loss in the same period a year ago. This widening loss, even with a decrease in operating expenses to $19.1 million for the nine months, shows the difficulty in achieving commercial scale.

The company is in constant capital-raising mode to bridge this gap. For instance, they completed a $5 million offering in February 2025 and a $4 million offering in June 2025, using the gross proceeds for general corporate purposes and working capital. But the math is simple: service revenue for the nine months ended September 30, 2025, was only $0.7 million. That's a tiny figure for a major space logistics player, and it's a stark drop from the $1.8 million reported a year prior.

• Raise capital or face insolvency.
• Cash and cash equivalents were only $1.6 million as of December 31, 2024.
• Dilution is a constant threat as the company sells stock to survive.

Operational and Technical Hurdles

The core business-in-space transportation and infrastructure-is inherently risky. Operational setbacks in delivering customer satellites into orbit, like a mission failure or a significant launch delay, could severely damage Momentus Inc.'s reputation and financial condition. This is a business where a single error can mean the total loss of a multi-million-dollar asset and a customer relationship.

The reliance on the successful development of their proprietary technology, like the Vigoride Orbital Service Vehicle (OSV) and its plasma water propulsion, is a major dependency. If the technology doesn't scale or perform as expected, the entire value proposition collapses. What this estimate hides is the long, expensive lead time for a new space vehicle to achieve flight heritage (proven reliability).

External Risks: Competition and Regulation

The space logistics market is emerging, but it's getting crowded fast. Momentus Inc. faces intense competition from both established aerospace companies and well-funded startups like Firefly Aerospace (FLY), Redwire (RDW), and Sidus Space (SIDU). These competitors are all vying for the same finite pool of government and commercial contracts.

Regulatory compliance is another non-negotiable risk. The company must navigate stringent U.S. export and import control laws, along with approvals from agencies like the Federal Aviation Administration (FAA) and the Federal Communications Commission (FCC). Momentus Inc. has a history here, having self-reported potential violations of export control laws in the past, which could lead to penalties if repeated. You can read more about the company's long-term goals in their Mission Statement, Vision, & Core Values of Momentus Inc. (MNTS).

The recent delay in filing the Q3 2025 10-Q, citing the need for additional time to finalize the accounting treatment of warrants tied to a September 2025 equity purchase agreement, is a red flag on internal controls and financial operations. This kind of delay, coupled with a previously noted material weakness in internal control over financial reporting, suggests a defintely higher-than-average risk in the accounting department.

Next Step: Portfolio Manager: Re-evaluate MNTS position based on the updated Q3 2025 liquidity and the high probability of further near-term equity dilution.

Growth Opportunities

You're looking at Momentus Inc. (MNTS) and seeing a space company with a low current valuation but a high-risk, high-reward future. The immediate financial picture is challenging, but the growth story hinges entirely on their unique technology and the strategic contracts they secured in 2025. The core takeaway is that while the company's revenue remains small, analyst projections point to a significant revenue ramp-up next year, driven by a pivot to government and infrastructure services.

The company's growth drivers are fundamentally rooted in their product innovations, which are now translating into tangible contracts. The main product is the Vigoride Orbital Service Vehicle (OSV), which acts as a space tug for satellite deployment and in-orbit services-think of it as the last-mile delivery truck for space. Their competitive edge is the Microwave Electrothermal Thruster (MET), a water plasma-based propulsion system that is both cost-effective and safe, having achieved Technology Readiness Level (TRL) 9 [cite: 2 from first search]. This is a big deal because it means the technology is flight-proven and ready to use, unlike many competitors' concepts still in development.

Momentus Inc. is defintely pushing hard into the government and commercial infrastructure market. This strategic shift is already reflected in their recent deals. In October 2025 alone, they announced a significant three-year, $15 million agreement with Solstar Space for in-orbit services and communications, plus a $5.1 million contract from NASA for the COSMIC mission to support advanced materials production in space [cite: 1 from first search, 15 from first search]. These contracts, totaling over $20 million, are critical for moving past the low quarterly revenue figures we saw earlier this year.

Here's the quick math on the near-term financial outlook. The company reported actual revenue of just $191,000 in Q2 2025, a steep 84.2% drop from the year prior, showing the struggle to monetize initial missions [cite: 3 from first search, 4 from second search]. But, analysts are forecasting a major turnaround for the full fiscal year 2025. The consensus projects annual revenue to hit an average of $8.2 million, with a high estimate of $8.4 million [cite: 2 from second search]. That represents a massive 286.0% increase over the 2024 annual revenue of $2.11 million [cite: 2 from second search, 6 from first search].

The earnings picture, however, remains a caution flag. Despite the projected revenue surge, the company is still in a heavy investment phase. The Q2 2025 net loss was -$6.45 million [cite: 3 from first search], and the full-year 2025 consensus EPS estimate is a loss of -$34.27 [cite: 2 from second search]. What this estimate hides is the high operating costs associated with scaling a space technology company. The forecasted annual Earnings Before Interest and Taxes (EBIT) is a loss of -$19 million, which tells you they are burning capital to build out their capabilities and secure future missions [cite: 5 from second search].

The key strategic initiatives driving this projected growth are clear:

• Securing high-value government contracts (like the NASA deals).
• Expanding the service model from just transportation to full in-orbit infrastructure (e.g., refueling, inspection, and hosting payloads).
• Leveraging the Vigoride OSV's flight heritage to win more commercial missions.

If you want to dig deeper into the investor base and who is betting on this turnaround, you should read Exploring Momentus Inc. (MNTS) Investor Profile: Who's Buying and Why?

The table below summarizes the financial duality: low current revenue but high projected growth based on new contracts.