Executive Summary

Q2 2023 revenue was $0.707M, GAAP net loss narrowed to $(14.0)M, and Adjusted EBITDA loss was $(33.1)M; Space Products drove revenue while Launch Services had no revenue in the quarter .
Management pivoted resources to Astra Spacecraft Engines, reallocated ~50 personnel, reduced workforce ~25%, and closed a $12.5M senior secured notes financing; cost actions target ~$4M quarterly savings starting in Q4 2023 .
Q3 2023 guidance: 8–12 engine deliveries, Adjusted EBITDA loss of $25–$29M, cash of $15–$20M, capex of $1–$2M, and basic shares of 280–290M .
Wall Street consensus (S&P Global) for Q2 2023 was unavailable; comparison to estimates cannot be provided (S&P Global data unavailable for ASTR).

What Went Well and What Went Wrong

What Went Well

“We remain intensely focused on near-term deliveries of Astra Spacecraft Engines to our customers and have made difficult but necessary decisions to enable these efforts. I believe our existing organization can support a sustainable business going forward.” — Chris Kemp, CEO .
Four shipments of Astra Spacecraft Engines were announced; ~77% of non-delivery customer milestones were completed; Space Force STP-29B mission SRR was completed .
“We… closed a Senior Secured Notes offering… [and] reduced operating expenses, including a 52% decrease in G&A Expenses quarter over quarter… We expect additional savings of approximately $4 million per quarter starting in Q4…” — Axel Martinez, CFO .

What Went Wrong

YoY revenue declined from $2.682M to $0.707M; Launch Services revenue was $0 in Q2 2023 vs $1.988M in Q2 2022 .
Workforce reductions (~70 employees in Aug. 4 announcement) and resource reallocation are expected to delay Rocket 4 test launches and paid commercial launches; commercial launch timing depends on test launch outcomes and resource availability .
Cash, cash equivalents, and marketable securities fell to $26.3M; Q2 cash balance was impacted by delays collecting ~$2.9M in government receivables and ~$2.1M employee retention credit cash .

Financial Results

Q2 YoY Comparison (Q2 2022 → Q2 2023)

Metric	Q2 2022	Q2 2023
Revenue ($USD Millions)	$2.682	$0.707
GAAP Net Loss ($USD Millions)	$(82.303)	$(14.004)
Loss per Share ($USD)	$(0.31)	$(0.05)
Adjusted Net Loss ($USD Millions)	$(52.969)	$(33.708)
Adjusted EBITDA ($USD Millions)	$(48.402)	$(33.083)
GAAP Gross Loss ($USD Millions)	$(14.763)	$(0.319)
Adjusted Gross Profit (Loss) ($USD Millions)	$(2.350)	$0.319

Non-GAAP adjustments included inventory write-downs ($10.2M) and capitalized launch cost write-downs ($2.213M) related to discontinuance of Launch System 1, which materially affected gross margin and adjusted results .

Sequential Comparison (Q1 2023 → Q2 2023)

Metric	Q1 2023	Q2 2023
Revenue ($USD Millions)	$0.000	$0.707
GAAP Net Loss ($USD Millions)	$(44.893)	$(14.004)
Loss per Share ($USD)	$(0.17)	$(0.05)
Adjusted Net Loss ($USD Millions)	$(42.330)	$(33.708)
Adjusted EBITDA ($USD Millions)	$(42.315)	$(33.083)
Capex ($USD Millions)	$5.0	$3.2
Cash, Cash Equivalents & Marketable Securities ($USD Millions)	$62.7	$26.3

Segment Revenue Breakdown

Segment	Q1 2023	Q2 2023
Launch Services ($USD Millions)	$0.000	$0.000
Space Products ($USD Millions)	$0.000	$0.707
Total Revenues ($USD Millions)	$0.000	$0.707

KPIs and Cash Flow

KPI	Q1 2023	Q2 2023
Cash used in Operating Activities ($USD Millions)	$(35.999)	$(33.489)
Free Cash Flow (non-GAAP) ($USD Millions)	$(41.030)	$(36.681)
Announced Engine Shipments (units)	—	4
Non-delivery Milestones Completed (%)	—	~77%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance / Actual	Change
Adjusted EBITDA Loss ($USD Millions)	Q2 2023	$(31) to $(35)	$(33.1) (Actual)	Met within range
Basic Shares Outstanding (Millions)	Q2 2023	271–273	271–273 (Prelim) ; Weighted avg used for EPS was 215.9 Class A, 55.5 Class B	Maintained (EPS calc reflects weighted averages)
Capex ($USD Millions)	Q2 2023	$3–$5	$3.2 (Actual)	Within range
Cash, Cash Equivalents & Marketable Securities ($USD Millions)	Q2 2023	$30–$33	$26.0–$26.5 (Prelim) ; $26.3 (Actual)	Lowered (collections delayed)
Engine Deliveries (units)	Q3 2023	—	8–12	New guidance
Adjusted EBITDA Loss ($USD Millions)	Q3 2023	—	$(25) to $(29)	New guidance
Basic Shares Outstanding (Millions)	Q3 2023	—	280–290	New guidance
Capex ($USD Millions)	Q3 2023	—	$1–$2	New guidance
Cash, Cash Equivalents & Marketable Securities ($USD Millions)	Q3 2023	—	$15–$20	New guidance

Drivers of the Q2 cash guidance reduction were delayed collection of ~$2.9M government receivables and ~$2.1M employee retention credit cash .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2022, Q1 2023)	Current Period (Q2 2023)	Trend
Space Products execution	Completed dedicated 60k sq ft engine facility; 278 committed engine orders (~$77M contract value)	4 engine shipments; ~77% milestones completed; scale up in Sunnyvale facility	Accelerating deliveries and program execution
Launch Services (Rocket 4)	Anticipated Rocket 4 test flights later in 2023; progress on production line and engine testing	Continued development but resource reallocation delays test launch timing and paid commercial launches	Timing pushed; focus shifted to Space Products near-term
Cost management & cash burn	Adjusted OpEx decreased Q4; Q1 cash burn reduced ~$8M QoQ with plans to reduce an additional $7–$10M	52% QoQ G&A reduction; plan for ~$4M quarterly savings starting Q4	Intensified cost actions
Financing & liquidity	Ended Q4 with $102.8M cash & marketable securities	$12.5M senior secured notes (9% coupon); ATM program; cash $26.3M at Q2 end	Liquidity bolstered via debt; cash balance lower
Regulatory/legal	—	Motion to dismiss granted in securities litigation (Aug 2)	Reduced legal overhang
Government contracts	USSF launch order ($11.45M) disclosed in Q1	Completed SRR for Space Force STP-29B mission	Continued engagement; program milestones

Management Commentary

Chris Kemp (CEO): “We remain intensely focused on near-term deliveries of Astra Spacecraft Engines… [and] necessary decisions to enable these efforts.”
Axel Martinez (CFO): “We… closed a Senior Secured Notes offering… reduced operating expenses, including a 52% decrease in G&A… expect additional savings of approximately $4 million per quarter starting in Q4… expect further reductions in quarterly cash burn.”
Business focus: Reallocation of ~50 engineering/manufacturing personnel from Launch Services to Space Products to support backlog and scale production/test capacity through year-end .

Q&A Highlights

The full Q2 2023 earnings call transcript could not be retrieved due to document system inconsistency; management provided an accompanying investor presentation with non-GAAP reconciliations and key operational updates . No additional Q&A themes can be cited from the transcript at this time.

Estimates Context

S&P Global consensus estimates for Q2 2023 (Revenue and EPS) were unavailable for ASTR due to missing CIQ mapping; as a result, we cannot evaluate beats/misses vs Wall Street consensus for this quarter (Values retrieved from S&P Global were unavailable for ASTR).

Key Takeaways for Investors

Near-term execution relies on Space Products: shipments and milestone completions support revenue while Launch Services remains pre-revenue until Rocket 4 test flights succeed .
Cost discipline is intensifying; 52% QoQ G&A reduction and planned ~$4M quarterly savings from Q4 should lower cash burn, but absolute cash fell to $26.3M at Q2-end, increasing reliance on financing and working capital improvements .
Financing provides runway but adds constraints: 9% senior secured notes and associated covenants/participation rights shape capital strategy; ATM remains available .
Q3 setup: 8–12 engine deliveries and reduced Adjusted EBITDA loss guidance suggest operational progress in Space Products; watch collections (government receivables/ERC) and delivery timing as catalysts for cash and revenue .
Launch timeline risk: workforce reallocation delays Rocket 4 test launches and therefore paid commercial launches; medium-term thesis depends on balancing Space Products growth with eventual Launch Services revenue inflection .
Legal overhang eased (motion to dismiss granted), marginally improving risk profile .
With consensus unavailable, focus on execution milestones (deliveries, SRR/compliance, cash burn trajectory) to gauge near-term trading sentiment.

Astra Space, Inc. (ASTR)·Q2 2023 Earnings Summary