York Space Systems (YSS) shares climbed on Monday morning, riding a wave of acquisition news that seems to have drowned out a recent short seller attack. The company announced a definitive agreement to acquire ALL.SPACE, a firm that makes multi-network satellite communications terminals. The deal is expected to close in the third quarter of 2026, and ALL.SPACE will become a wholly owned subsidiary, continuing to serve government and industry clients.
The rally comes after intense pressure from a short seller report. Wolfpack Research on May 11 released a bearish note, saying it is short York Space Systems. The firm alleged that 96% of York's 2025 revenue came from satellite sales to a single customer — the Pentagon's Space Development Agency (SDA) — which Wolfpack claims is now being phased out. The short seller further alleged that the Pentagon wiped out future funding for the SDA's Tranche 3 Transport Layer, which would be replaced by a SpaceX sole-source program.
But investors seem to be looking past the bearish thesis, at least for now. During the last reporting period, short interest in YSS rose from 5.72 million to 6.24 million shares, representing 9.3% of the company's public float. Based on the average daily volume of 2.59 million shares, short sellers would need 2.41 days to cover their positions. That kind of high short interest can act like rocket fuel for upward price momentum when positive news hits — and the ALL.SPACE acquisition is certainly positive news.
York also has a strong financial foundation to back up the optimism. 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. That's a lot of dry powder for a company that's supposedly on the brink.
ALL.SPACE CEO Paul McCarter said the partnership will allow them to scale its technology to meet rising demand in complex operational settings. York Space Systems shares were up 5.60% at $25.50 at the time of publication on Monday.
