Shares of Momentus Inc. plunged 12% to $17.08 on May 29, cooling sharply after a stunning rally that saw the stock more than double from $7.38 on May 22 to $19.50 just five days later. The catalyst: a $25 million private placement with existing institutional investors. With no new negative news driving today's selloff, the pullback looks like textbook profit-taking — but the deeper question is whether this capital infusion changes anything fundamental for a company that has struggled to prove its business model. Momentus Stock Drops 12% as $25 Million Cash Infusion Lifts Balance Sheet — but Can a Company Burning $10 Million a Quarter Outrun Dilution?
Shares of Momentus Inc. shifted sharply lower Thursday, falling 12% to $17.08, as traders who rode a dizzying 164% rally from $7.38 to $19.50 in just five sessions cashed out. No fresh bad news drove the selloff. The trigger was simple: a breather after an explosive run sparked by a $25 million private placement — a deal where a company sells new shares directly to big investors rather than on the open market.
• The Deal Nearly Doubles Momentus's Cash Pile, but Shareholders Paid in Dilution
Momentus sold 2,942,000 shares at market price to existing institutional backers, with the deal closing around May 28.
The company had already reported cash of $26.2 million as of April 23, up from $12.8 million at year-end 2025 — meaning the $25 million raise roughly doubles the war chest to an estimated $51 million. Gross cash is now expected to reach approximately $76 million after the placement when factoring in additional prior raises. That's meaningful runway for a company that, in Q1 2026 alone, posted a net loss of $9.5 million and burned $5.8 million in operating cash.
• Revenue Is Growing Fast — From Almost Nothing
First-quarter 2026 service revenue jumped to $3.2 million from just $0.3 million a year earlier, driven by payload hosting and engineering work for U.S. government customers.
Management forecasts $10 million in full-year 2026 revenue, a 9x increase over 2025's $1.1 million. Impressive growth on a percentage basis, but still tiny against quarterly cash burn north of $5 million.
• The Bigger Tailwind: SpaceX IPO Hype Is Lifting All Boats
Space stocks gained momentum after SpaceX formally filed IPO paperwork, and Momentus is part of a broader group — alongside Rocket Lab and AST SpaceMobile — drawing strong investor interest on sector enthusiasm. That tide can recede as quickly as it came.
• Debt-Free Doesn't Mean Risk-Free
As of April 2026, Momentus retired its remaining $1.35 million in convertible debt and now carries zero debt. A clean balance sheet helps win government contracts, but operating costs reached $10.5 million in Q1 — up from $6.5 million a year ago — meaning the company is spending faster as it scales. Without continued revenue acceleration, today's cash could be gone in under two years.