Following recent high-profile initial public offerings (IPO) from Circle (CRCL) and eToro (ETOR), space and defense technology firm Voyager Technologies (VOYG) just hit the public markets. 

About Voyager Technologies

Founded in 2019, Voyager is focused on building infrastructure, software, and hardware for missions in low Earth orbit (LEO) and the national security sector. It operates through three business segments: Defense & National Security, Space Solutions, and Starlab Space Stations. It has partnerships with sector heavyweights such Palantir (PLTR), and Lockheed Martin (LMT) as well as the NASA and the U.S. Air Force.

The IPO initially involved 11 million Class A shares at a price range of $26 and $29 per share, with Voyager expecting to raise roughly $274.2 million. However, it exceeded expectations as the company raised about $382.8 million by selling around 12.35 million shares at $31 each. The company intends to use the net proceeds to fund strategic growth initiatives, including investment in research and development programs and the acquisition of capital assets necessary to support long-term innovation.

Is Voyager worth a second look here? 

Voyager Has Mixed Financials 

Voyager is yet to be profitable, which is not uncommon for space startups.

In fact, Voyager's losses widened in 2024 to $9.88 per share from $5.25 in the previous year. 

However, net sales increased by 6% in the same period to $144.2 million, up from $136.1 million in 2023. The U.S. government remained its primary customer with a sales contribution of $121 million. Moreover, the company increased its gross profit in 2024 to $34.9 million from $27.8 million in 2023. This increase in gross profit with an accompanying rise in sales reflects the competitive strength of the company.

Meanwhile, backlog and bookings, key indicators of the demand for the company’s products and services, also witnessed a rise in 2024. The backlog at the end of 2024 stood at $101.7 million (vs. $86.5 million in 2023), bookings increased to $159.4 million from $102.1 million in the year-ago period.

However, staying true to the mixed sentiment, Voyager's cash outflow from operations surged to $25.5 million last year compared to $15.4 million in 2023. Nevertheless, the company closed the March quarter with a cash balance of $175.5 million, which was much higher than its net debt levels of $57.6 million, alleviating any concerns about liquidity for the time being.

For the first quarter of 2025, net sales were at $34.5 million, up 14.2% from the previous year, while losses widened to $3.45 per share from $2.38 in the year-ago period.

A Growing Market 

Amid escalating global tensions, defense spending has surged significantly, particularly across Europe, where expenditures climbed 30% between 2021 and 2024. In fact, global defense outlays hit an all-time peak of $2.46 trillion in 2024, and forecasts from Deloitte suggest this figure is set to rise even further in the coming year.

Space technology is emerging as a key area of strategic interest within the defense sector. McKinsey projects the space sector could evolve into a $1.8 trillion market by 2032 — a frontier that Voyager aims to penetrate in a meaningful way.

This anticipated expansion is underpinned by heightened capital inflows from both government bodies and the private sector, targeting segments such as satellite communication, planetary observation, deep space exploration, and even space-based tourism.

Specifically for Voyager, the company’s positioning is reinforced by its enduring collaborations with NASA and numerous Tier-1 defense contractors. Its credibility is rooted in a robust operational history, marked by its involvement in over 1,000 space missions, and a network of strategic alliances.

These partnerships span more than 20 government and commercial institutions across the space and defense sectors. On the public side, Voyager contributes to multiple U.S. federal agencies including NASA, segments of the Department of Defense such as the Missile Defense Agency, the U.S. Air Force, and the U.S. Space Force, along with various international space programs. Its commercial relationships include notable defense names such as Lockheed Martin, Northrop Grumman (NOC), and RTX Corporation (RTX), alongside space-focused entities like Blue Origin and Maxar.

Notably, Voyager’s specialized capabilities in propulsion systems position it as a potential enabler in President Donald Trump’s proposed Golden Dome initiative, an ambitious defense project carrying an estimated cost of $175 billion. Separately, the company is also spearheading the development of the Starlab Space Station, envisioned as the successor to the ISS, which is scheduled for retirement by the end of the decade. Voyager has already completed Phase 1 of NASA’s initial design mandate and has secured funding to proceed with Phase 2 involving hardware development. As of the first quarter of 2025, $70.3 million of the total $217.5 million in allocated funding remains available.

The broader Starlab venture is equally compelling. Structured as a joint initiative, Voyager holds a controlling 67% stake, with Airbus (EADSY) owning 30.5%, and the remainder split among Mitsubishi (MTSUY), MDA Space, and Palantir (PLTR). Once operational, Starlab is expected to serve a range of sectors from pharmaceutical R&D to advanced chip manufacturing. The design is inherently modular, allowing for scalable expansion as demand matures, thereby mitigating the risk of overcapitalization in the early stages.

The Bottom Line

Voyager’s spectacular debut has raised calls to book profits. Moreover, its widening losses have raised concerns around the company.

However, the balance sheet is not as bad as it is made out to be, with no alarming liquidity issues. Growing sales and gross profits, strong collaborations with the government, commercial partnerships with industry heavyweights, and innovative initiatives makes Voyager a compelling investment choice for investors looking to gain exposure to the rapidly expanding space-tech market.