Redwire Corporation, a defense and space startup, has seen its stock plummet by 30% last month and over 75% from its all-time highs, according to S&P Global Market Intelligence data. The company is facing challenges such as executive changes, growing shareholder dilution, and a significant free cash flow burn.

Redwire specializes in autonomous aircraft, space exploration, and defense technologies, targeting the defense and space solutions sector. Despite rapid growth and a backlog of $355 million, the company’s negative free cash flow of $167 million over the last year is concerning. Redwire has been diluting shareholders to fund its losses and acquisitions.

With Redwire’s shares outstanding doubling in the past year, the company is facing headwinds in long-term growth and share price appreciation. Revenue growth has slowed, and recent government shutdowns have caused contract delays. Despite winning new contracts, the company’s cash burn and shareholder dilution continue to impact its performance.

Redwire’s stock is continuing to decline until it can demonstrate profitability. The company’s focus on defense and space technology faces challenges with revenue growth, losses, and shareholder dilution. Investors should consider the risks before buying stock in Redwire, as profitability remains uncertain despite new contract wins.

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Read more at Yahoo Finance: Why Redwire Stock Collapsed 30% Last Month