The headline miss is the outlook, not the quarter. York reduced FY2026 revenue guidance to $375M–$405M from the previously reaffirmed $545M–$595M range, a roughly 32% reset. The prior range was still in place as of May 14, 2026.
| Metric | Q2 2026 | Q2 2025 | Six months 2026 | Six months 2025 |
|---|---|---|---|---|
| Revenue | $92.5M | $83.8M | $208.9M | $190.1M |
| GAAP gross profit | $22.2M | $9.5M | $44.3M | $34.1M |
| GAAP gross margin | 24% | 11% | 21% | 18% |
| Adjusted EBITDA | $(9.5)M | $(8.9)M | $(13.1)M | $(3.5)M |
| Net loss | $(39.3)M | $(24.2)M | $(154.2)M | $(36.0)M |
Revenue was modestly better year over year but not enough to preserve the plan. Q2 revenue rose 10% to $92.5M, while the company says delayed larger government programs and the shift from rapid RFP awards to slower IDIQ contracting removed expected 2026 new-business revenue. That makes the cut a timing and execution reset, not merely a conservative wording change. (Financial Highlights; Outlook)
Margins improved sharply, but underlying profitability remains weak. GAAP gross margin rose to 24% from 11%, helped by the roll-off of a negative prior-year estimated-at-completion adjustment. Contribution margin also improved to 42% from 24%. But adjusted EBITDA remained negative at $(9.5)M, and six-month adjusted EBITDA deteriorated to $(13.1)M from $(3.5)M. (Financial Highlights; Reconciliation of GAAP to Non-GAAP Measures)
The cash cushion is mostly IPO-funded, not operational. York ended June with $534.0M of cash, but operating activities used $186.6M in the first half, versus $99.8M a year earlier. The balance was supported by $592.8M of net IPO proceeds, while acquisitions and integration also consumed cash. (Balance Sheet; Cash Flow statement)
Backlog and contract wins soften the longer-term picture, but do not offset the near-term reset. The company cites $592M of backlog, $1.85B of potential revenue on awarded contracts, and an $11.5B pipeline, alongside eight first-half wins and an 88% win rate. Those figures support a 2027 recovery narrative, but much of the value remains dependent on future task orders and government procurement acceleration rather than current-year revenue. (Management commentary; Outlook)
Net read: the filing is a guidance miss despite better gross margins. The market received evidence of improving contract economics, but the much larger change is that roughly one-third of the prior 2026 revenue opportunity has been pushed out, primarily into 2027 and beyond.
Read the original 8-K on SEC EDGAR ↗