York Space Systems Inc. (NYSE:YSS) shares climbed on Monday morning. The surge follows a definitive agreement to acquire ALL.SPACE.
ALL.SPACE provides multi-network satellite communications terminals. The transaction is expected to close in the third quarter of 2026.
ALL.SPACE will become a wholly owned subsidiary. It will continue serving the government and industry, clients.
Wolfpack Raises Red Flags Over York’s Revenue Concentration
The rally comes after intense pressure from a short seller report. Wolfpack Research on May 11, released a bearish note.
Wolfpack Research said it is short York Space Systems, alleging that 96% of the company’s 2025 revenue came from satellite sales to a single customer — the Pentagon’s Space Development Agency (SDA) — which the firm claims is now being phased out.
The short seller claims the Pentagon wiped out future funding for the SDA’s Tranche 3 Transport Layer. They allege the program will be replaced by a SpaceX sole-source program.
York Space Systems High Short Interest Setup
During the last reporting period, short interest rose from 5.72 million to 6.24 million shares. This represents 9.3% of the company’s public float.
Based on the average daily volume of 2.59 million shares, short sellers require 2.41 days to cover their positions. This high short interest can accelerate upward price momentum during positive news.
Strong Financial Foundation
Despite the critique, York’s recent earnings beat expectations. First-quarter revenue hit $116.34 million, topping estimates of $109.59 million.
The company boasts a $642 million backlog and $656 million in cash.
ALL.SPACE CEO Paul McCarter stated the partnership will allow them to scale its technology to meet rising demand in complex operational settings.
YSS Price Action: York Space Systems shares were up 5.60% at $25.50 at the time of publication on Monday, according to Benzinga Pro data.
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