Momentus Receives Modest Contract Payments Amid Persistent Solvency Warnings

What happened

Momentus Inc. announced it received about $1.9 million in January 2026 from NASA and U.S. Air Force contracts, portraying this as successful execution. However, the company's financials show severe distress, with negative equity of $0.7 million, a going-concern warning, and only $0.75 million in revenue for the first nine months of 2025. These payments are trivial against annual operating expenses of approximately $20 million and a cash burn of $12-17 million, highlighting their insignificance in addressing liquidity needs. The DeepValue report underscores that Momentus survives on dilutive financings from a single investor, with revenue far below the $5 million per quarter threshold needed to alter the investment thesis. Thus, this news does not change the core narrative of high bankruptcy risk and equity dilution.

Implication

First, the $1.9 million inflow barely offsets the $12.7 million operating cash burn reported for nine months in 2025, providing only temporary relief. Second, it represents realization of existing government awards, not new revenue growth, keeping annualized revenue well below sustainable levels. Third, this does not alter the need for serial dilutive financings, which continue to erode shareholder value and increase warrant overhangs. Fourth, the company's survival remains tied to a single institutional investor, amplifying counterparty risk if funding dries up. Fifth, investors should treat this as a non-event, as it reinforces rather than resolves the fundamental financial instability.

Thesis delta

No material shift in the investment thesis. The payments are consistent with prior contract awards and do not meet the criteria of four consecutive quarters with revenue above $5 million and positive operating cash flow required to upgrade from a STRONG SELL rating. The bear case of funding failure, delisting, or bankruptcy remains highly probable, with this news failing to address the underlying solvency and dilution risks.