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Redwire misses Q1 revenue estimates by $13.14mln, reports 30.1% YoY decline.
ByAinvest
Tuesday, Sep 2, 2025 10:21 am ET1min read
• Redwire Corp. faces investigation over potential securities fraud and business practices. • Company reported Q1 2025 revenue of $61.4mln, missing estimates by $13.14mln. • Revenue declined 30.1% YoY, attributed to government contract delays and budget shifts.
Redwire Corporation (RDW) is under investigation by Pomerantz LLP, a prominent law firm specializing in securities class actions. The investigation centers on potential securities fraud and other unlawful business practices by the company and its officers or directors [1].Redwire reported its first-quarter 2025 financial results on May 12, 2025, revealing revenue of $61.4 million. This figure fell short of consensus estimates by $13.14 million, representing a 30.1% year-over-year decline. The company attributed the revenue drop to delays in U.S. government contract awards, primarily due to leadership transitions at agencies like NASA and the Space Development Agency, as well as shifting budget priorities under the Trump administration [1].
The stock price of Redwire responded negatively to the news, falling by $0.75 per share, or 6.63%, to close at $10.56 on May 12, 2025 [1].
On August 6, 2025, Redwire announced its second-quarter 2025 financial results. The company revised its 2025 revenue outlook to $470M-$530M, representing a 43.2% compound annual growth rate from 2023 to 2025 at midpoint. However, the revised outlook was a reduction from the company's previous guidance. Additionally, Redwire withdrew its previously provided adjusted EBITDA combined forecast for the full year 2025, citing volatility in government contracting and project cost challenges [1].
The stock price of Redwire reacted strongly to this news, falling by $4.23 per share, or 30.87%, to close at $9.47 on August 7, 2025 [1].
Investors are advised to contact Danielle Peyton at Pomerantz LLP for more information or to join the class action. The law firm can be reached at newaction@pomlaw.com or 646-581-9980, ext. 7980 [1].
References:
[1] https://www.morningstar.com/news/globe-newswire/9520164/investor-alert-pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-redwire-corporation-rdw
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