Voyager Technologies (VOYG) plummets 12.29% as convertible note offering sparks dilution fears

The share price dropped to a record low today, with an intraday decline of 12.29%.

Voyager Technologies (VOYG) has seen its stock plummet after announcing a $300 million convertible senior note offering, which triggered immediate investor concerns over dilution risks. The offering includes a $45 million over-allotment option and will fund capped call transactions to offset potential share dilution, repurchase up to $175 million of Class A common stock, and support growth initiatives. Despite the company’s emphasis on capital efficiency and strategic expansion in the defense sector, the convertible structure—matured in 2030—has raised long-term uncertainty. A KeyBanc analyst also downgraded the price target to $45 from $50, citing macroeconomic risks such as a potential U.S. government shutdown, which could disrupt federal contracts critical to Voyager’s revenue.

The stock’s four-day losing streak, with a 22.07% decline since Nov. 3, reflects broader market skepticism. While Voyager reported a 31% year-over-year growth in its defense segment and reaffirmed 2025 sales guidance, the market has discounted near-term optimism. The convertible note’s flexibility—allowing cash, share, or hybrid settlements—has further fueled uncertainty, even as the company hedged with prepaid forward stock repurchases to stabilize its valuation. Analysts note the space defense sector’s sensitivity to government spending and geopolitical tensions, compounding pressure on high-growth stocks like VOYG amid inflation and interest rate volatility. Voyager’s strategy to balance capital allocation between debt issuance and buybacks remains unproven in restoring investor confidence.