Given the cut to revenues, I know you don't give EBITDA guidance necessarily, but is there any way to help frame kind of how you think about the decremental margin on the lower revenue base? If I look at the second half guidance, the midpoint, you're kind of around the second quarter revenue rate.

Is the second quarter EBITDA performance in the range of how you're thinking about the second half? or is there incremental pressure because of the cost that come in with all space and then the and the recent acquisitions uh chris or brian i'm not sure we're where we are with kind of cheering guidance on the epitaph yeah i i can take that one um you know it's it's a couple of different pieces here um you know as as i talked about in our in the prepared remarks you know we do think the the the gross profit margin is going to hang in there around the mid 20 range And so as you're thinking about that relative to EBITDA, certainly taking a factor of around that times the reduction in revenue, I think that would get you directionally where you might want to be on the EBITDA side.

Okay, that's helpful. I'll stick to one question.

Your next question comes from the line of Austin Moeller with Canaccord.

Austin, your line is now open. hi good afternoon so i was just wondering if we could quantify how much of the guidance change and revenue push out into 2027 was associated with the the later timing on contract awards from the idiqs versus the satellites that are waiting on components to be sourced in the supply chain and if we could talk specifically about uh what those satellite programs are and when they might be ready for delivery.

Yeah, I can take that. I mean, certainly, you know, between the supply chain pushing out as well as the new revenue, I mean, those things are about equal in terms of how they are. So, you know, it's more or less a push between the supply chain and the new revenue coming in. But, you know, we haven't provided any additional color on that at this point.

Okay. And I understand that the gross margins are expected to remain pretty much in line in that mid-20s range for the back half of the year. As we get into early 2027 and some of these IDIQs start turning into production awards, should we be thinking about a similar or better ramp in the margins, or how should we be thinking about that?

You know, at this point, with the contract award environment that Dirk was talking about and awards are coming out, you know, literally right before we get onto this call, I don't think we're prepared yet to start talking about where 27 margins would come in, nonetheless, on the revenue side either.

Okay, I'll pass it back there. Thank you.

Your next question comes from the line of Ryan Kuntz with Needham & Co. Ryan, your line is now open.

I just wanted to touch on a couple of the opportunities you mentioned that were not really new award related. You talked about your real-time delivery opportunity. I wanted to take a gauge on that, if you could comment. And then also, with regards to the Allspace acquisition, can you refresh us on what those use cases are and how you think about – Yeah, sure.

Thanks, Ryan. Can you offer more color on the first item? I got the second one is Allspace.

Oh, and you had talked about the opportunity to be short-term response delivery to customers to luxury before, and that was an opportunity you wanted to pursue. Maybe you can update us on those opportunities as you see them.

Sure, absolutely. So I would view this more as, you know, hey, how can an inventory potentially increase Pwin and increase delivery? So, yes, we're proceeding forward. Part of the IPO was to raise some capital to support inventory. uh we're pretty far along in our production capacity uh in our in the techno you know tech technology maturity and so we're in the fortunate position that we can do inventory ahead and so we've we've begun that process uh the nice part is that as we are progressing through it uh these idiqs and task orders we now can kind of bucket those into our inventory orders and so we might now we're starting to have the ability where we're asked for a task order our delivery time can be slightly shorter because we already ordered those materials. So we're definitely seeing the benefits as far as our delivery timeline capability, you know, in contrast to some of our competitors who would need to start from scratch. So we're definitely seeing some upside there. We are definitely allocating from inventory already towards some of these programs that we've won. And then we can obviously choose to invest more on the back end of that inventory. So as far as recognizing scheduled delivery and also putting us in a good position to have good P win, the inventory capability has been extraordinarily helpful. And so that has been so far very successful. And so we're happy to see that. We'll continue in support of that. As far as the all-space acquisition, look, we're on the other side of it now, which I'm very fortunate to say. You know, it's a very amazing capability and very good demand. So, you know, we alluded to in the earnings deck that, you know, they're getting new contract wins now for more terminals. Those systems are starting to proliferate across demand systems. But what I'm really interested in, and I talked to this a little bit earlier as well, is the unmanned proliferation. So, you know, I think there's at this point no doubt at all that unmanned systems are going to play a giant part in the future of warfare and basically the future of everything. And so assured communications, i.e. communications that is not jammed like we're seeing in Ukraine and Iran and everywhere else, is going to be extraordinarily important. And that's really what that Allspace Terminal enables, is assured communication in denied environments and also GPS capability as well in denied environments. And that's really going to be the key to leveraging unmanned systems. So long way of saying they've continued to win new programs and new contracts, which obviously we're very happy about.

And we're working now to start to integrate those across unmanned systems, which I think has tremendous growth potential for us in the next two to three year time frame. got it and it's all space going to bring much backlog to the picture here uh brian you can comment on that one yes we've included uh actually we've not included the all space backlog in our number because our number was as of june 30th but we'll be updating that into uh into q3 so it will be a small increase related to uh all space backlog when we when we'll report two, three.

Okay.

Our next question comes from the line of Noah Papanek with Goldman Sachs. Noah, your line is now open.

Good afternoon. This is Tomas Ruzon for Noah Papanek. In your slide deck, you highlight a few billion of identified commercial pipeline. Can you provide any detail on the types of mission sets those commercial customers are serving?

Sure. So I I will speak to it generally because a lot of times those commercial companies in particular are very particular about what specific that they are doing. So I'll talk about it very generally. There's a wide range of capability there. You know, one of the sample cases that could be worked or is in that pipeline is Earth observation. Obviously, that fills a giant, giant swath of capabilities, but there's visible imagery, there's synthetic aperture radar imagery, there's infrared. and those are increasingly being demanded by the government to be bought commercially but then also on the commercial side of things as well and so that's obviously a tremendous growth area for us as we have capabilities in all those areas other areas that we're seeing are things that used to be government provided capabilities that the government really at this point no longer really needs to do anymore and can shift that to commercial so as an example right so commercial services to the international space station used to be something that nasa and the government did But as technology developed, it became apparent that we don't need to do this. We can buy this as a service in the commercial market. And out of that, you had SpaceX and Boeing win contracts to serve the ISS. That's a similar model to what I think we will see for future growth in the commercial side of things, where there's things like more precise GPS capability is something that's being demanded by the government, but also very strong demand on the government side of things. And that can be converted to a commercial service. Other examples might be things like weather is another area where that might have been performed by government agencies. And so that can definitely be done by commercial companies now. So there's kind of two buckets. One is your traditional old Earth observation, which that market has been continuing to grow for a long time. Government and commercial markets are good customers of those. And then the other bucket is things that historically were government capabilities, you know, precise GPS, things like that, that we can see the government shifting into commercial markets as well and buying that as a service. So those are a few different examples. Apologies, I can't get more specific.

No, I understand. And thank you. That's helpful.

How should we think about the margin profile for these commercial customers? is it largely similar to what you outlined during the annual stay or what drives the difference there i think it's largely similar but brian i don't know if you wanted to add more context otherwise i can yeah i mean it's it is it's it's a little bit lower but um than than what we see on some of the government ones but um you know i don't know that it'd be enough particularly in the overall revenue mix to to call it out that much thank you for those details i'll hand it back there.

There are no further questions at this time. I will now turn the call back to Dirk Wallinger for closing remarks.

Yeah, so I just wanted to thank everyone for taking the time to hear the story. I look forward to speaking with you all next quarter.

This concludes today's call. Thank you for attending. You may now disconnect.