Executive Summary

Q3 revenue was $0.26M, down sequentially from $0.71M (Q2), as Space Products revenue timing pushed into Q4; GAAP net loss widened to $29.7M, while Adjusted EBITDA loss improved to $24.7M, better than the prior Q3 guide of $25–$29M .
Astra delivered 8 Astra Spacecraft Engines in Q3 with revenue recognition expected in Q4 upon customer acceptance; signed two new engine contracts totaling $11.7M, supporting near‑term backlog and mix shift toward Space Products .
Liquidity tightened: cash and equivalents were $13.9M with $5.0M in restricted cash and no marketable securities at quarter‑end; operating cash outflow improved to $(18.1)M and free cash flow to $(19.3)M .
Guidance check vs Q3 outlook (set on Aug 14): Adjusted EBITDA loss beat (less negative than guided), capex landed within guidance, deliveries achieved the low end, while cash and equivalents+marketable securities finished slightly below the $15–$20M target .
Near‑term catalysts: Q4 revenue recognition of 8 engines, cost‑savings ramp (~$4M quarterly from Q4) and financing/strategic updates; launch timelines remain delayed given resource reallocation to Space Products .

What Went Well and What Went Wrong

What Went Well
- Delivered 8 spacecraft engines in Q3 (rev. expected in Q4) and signed $11.7M of engine contracts, underscoring demand for Space Products .
- Adjusted EBITDA loss of $(24.7)M improved Q/Q and was better (less negative) than the $(25)–$(29)M guidance range .
- Opex/cash discipline improving: operating cash outflow improved to $(18.1)M and free cash flow to $(19.3)M; capex trimmed to $1.3M .
- Management focus: “We remain intensely focused on near‑term deliveries of Astra Spacecraft Engines… have made difficult but necessary decisions to enable these efforts.” – CEO Chris Kemp (Q2 release) .
- Cost actions: “We expect additional savings of approximately $4 million per quarter starting in Q4…” – CFO Axel Martinez (Q2 release) .
- Strategic prioritization: “We are intensely focused on delivering on our commitments to our customers…” – CEO Chris Kemp (Aug 4 update) .
What Went Wrong
- Sequential revenue declined to $0.26M (from $0.71M in Q2) as engine deliveries await acceptance for Q4 recognition; launch services revenue remained $0 .
- Cash and equivalents of $13.9M finished slightly under the $15–$20M Q3 target for cash, cash equivalents and marketable securities; marketable securities ended at $0 .
- GAAP net loss widened to $(29.7)M Q/Q, reflecting limited revenue and ongoing R&D/G&A to develop Launch System 2 and scale Space Products .
- Launch timing risk persists: workforce reallocations to engines expected to delay Rocket 4 test and paid commercial launches, impacting near‑term launch revenue .
- Capital needs remain in focus; company engaged PJT Partners to explore financing and potential strategic investment in the Spacecraft Engine business .

Financial Results

Headline metrics vs prior periods and (where applicable) vs prior year

Metric	Q3 2022	Q2 2023	Q3 2023
Revenue ($USD Millions)	$2.78	$0.71	$0.26
GAAP Net Loss ($USD Millions)	—	$(14.00)	$(29.70)
Adjusted EBITDA Loss ($USD Millions)	—	$(33.08)	$(24.65)
GAAP Gross Margin (%)	61%	45%	9%
Diluted EPS ($)	—	$(0.05)	$(1.63)

Segment revenue breakdown

Revenue ($USD Millions)	Q1 2023	Q2 2023	Q3 2023
Launch Services	$0.00	$0.00	$0.00
Space Products	$0.00	$0.71	$0.26
Total	$0.00	$0.71	$0.26

Cash and cash flow KPIs

KPI	Q1 2023	Q2 2023	Q3 2023
Cash & Equivalents ($USD Millions)	$16.81 (cash) + $45.94 (marketable)	$13.38 (cash) + $12.94 (marketable)	$13.87 (cash) + $0.00 (marketable)
Restricted Cash ($USD Millions)	—	—	$5.00
Cash Used in Ops ($USD Millions)	$(36.00)	$(33.49)	$(18.07)
Capex ($USD Millions)	$5.03	$3.19	$1.26
Free Cash Flow ($USD Millions, non‑GAAP)	$(41.03)	$(36.68)	$(19.33)

Additional Q3 details

GAAP net loss: $(29.7)M; Adjusted net loss: $(27.4)M .
Balance sheet: Total assets $99.8M; total liabilities $91.7M; stockholders’ equity $8.1M .

Guidance Changes

Comparison of Q3 2023 guidance (issued Aug 14) vs actuals

Metric	Period	Previous Guidance (Aug 14)	Actual	Change
Spacecraft Engine Deliveries	Q3 2023	8 to 12 units	8 units delivered; rev. in Q4 upon acceptance	Achieved low end
Adjusted EBITDA Loss ($M)	Q3 2023	$(25) to $(29)	$(24.65)	Beat (less negative)
Capex ($M)	Q3 2023	$1.0 to $2.0	$1.26	In line
Cash, Cash Equivalents & Marketable Securities ($M)	Q3 2023	$15.0 to $20.0	$13.87 cash; $0 marketable secs	Slight miss

Earnings Call Themes & Trends

Note: A Q3 2023 earnings call transcript for ASTR was not available in our document system; themes below reflect Q1/Q2 releases and the Aug 4 business update for continuity.

Topic	Previous Mentions (Q1 & Q2 2023)	Current Period (Q3 2023)	Trend
Space Products prioritization	Emphasis on scaling engine production; first 4 engine shipments; ~77% of non‑delivery milestones (Q2)	8 engines delivered in Q3 (rev shift to Q4) and $11.7M of new engine contracts	Increasing focus and execution
Launch System 2 / Rocket 4 timeline	Development milestones progressing (Q1)	Workforce reallocations expected to delay test and paid commercial launches	Delays likely
Cost reductions / cash burn	$4M quarterly savings expected starting Q4 (Q2)	Cash burn improved Q/Q (Ops cash outflow $(18.1)M; FCF $(19.3)M)	Cost actions flowing through
Financing / strategic alternatives	Senior Secured Notes/ATM (Q2)	PJT Partners engaged to explore financing/strategic investment in Engine business	Active
Government/Defense exposure	U.S. Space Force launch contract $11.45M (Q1)	Two new engine contracts incl. a “major non‑US defense prime”	Growing defense linkages

Management Commentary

“We remain intensely focused on near‑term deliveries of Astra Spacecraft EnginesTM 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, Founder, Chairman & CEO (Q2 release) .
“We expect additional savings of approximately $4 million per quarter starting in Q4 based on the strategic reallocation of resources… As a result, we expect further reductions in quarterly cash burn throughout the remainder of the year.” – Axel Martinez, CFO (Q2 release) .
“We are intensely focused on delivering on our commitments to our customers, which includes ensuring we have sufficient resources and an adequate financial runway to execute on our near‑term opportunities.” – Chris Kemp (Aug 4 strategic update) .

Q&A Highlights

A Q3 2023 earnings call transcript for ASTR was not found in our document system and could not be verified via our standard sources; therefore, Q&A themes and any guidance clarifications from the call are unavailable. We reviewed Q1 and Q2 2023 earnings releases and the Aug 4, 2023 business update for context .

Estimates Context

Wall Street consensus (S&P Global) for Q3 2023 EPS and revenue was unavailable for ASTR in our S&P Global mapping at the time of this analysis, so we cannot anchor results to consensus or characterize beats/misses based on SPGI data. Values retrieved from S&P Global were unavailable due to missing mapping.

Key Takeaways for Investors

Execution shifted to Space Products: 8 engines delivered in Q3 with Q4 revenue recognition expected; two new engine deals ($11.7M) bolster backlog and visibility .
Profitability trajectory: Despite lower Q3 revenue, Adjusted EBITDA loss improved sequentially and beat guidance (less negative), reflecting ongoing cost actions .
Liquidity tight but managed: Cash and equivalents fell to $13.9M (restricted $5.0M), with improved operating and free cash outflows Q/Q; marketable securities were $0 at quarter‑end .
Launch revenue deferred: Resource reallocation and cost controls are expected to delay Rocket 4 test and paid launches, keeping Launch Services revenue at $0 near term .
Near‑term catalysts: Q4 recognition of Q3 engine deliveries, incremental cost‑savings (~$4M per quarter starting Q4), and financing/strategic updates (PJT Partners engaged) .
Risk‑reward skew: Absent launch revenue and with limited cash, execution on Space Products deliveries and financing remains critical to sustain operations through development milestones .

Sources: Q3 2023 8‑K earnings press release and financials ; Q2 2023 8‑K earnings press release and outlook ; Q1 2023 8‑K earnings press release ; Aug 4, 2023 strategic/workforce update 8‑K .

Astra Space, Inc. (ASTR)·Q3 2023 Earnings Summary