Earth orbital has updated its expected financial results for the end of the year after the company received a long-awaited payment from its largest customer, Rivada Space Networks.
The news, announced today, confirms previous TechCrunch reports that Terran CEO Marc Bell expected at least some payment from Rivada before the end of the year.
Rivada, a German subsidiary of US-based Rivada Networks, has ambitious plans to build a megaconstellation in low Earth orbit. The company contracted Terran to build 300 satellites at an expected total cost of $2.4 billion. The contract is by far Terran's largest and represents the majority of the company's backlog.
While Terran did not disclose the exact amount of the payment, the company did say that Rivada is now up to date on all outstanding invoices. Terran added that it expects to receive additional incremental payments this year and is on track to deliver satellites in 2025 and 2026.
As a result of the payment, Terran adjusted its expected year-end cash balance from $38.7 million at the end of September to over $70 million at the end of December. Overall, it's great news for Terran Orbital, which has seen its stock fall since it made its public market debut at $10.96 per share. But an incremental payout from its largest customer will certainly help shore up investor confidence as the company moves into a new year.
Terran Orbital, which trades on the New York Stock Exchange under the symbol LLAP, saw its share price rise slightly on the news, rising from $1.14 in the previous close to $1.26 in the time of publication.
