TL;DR: SpaceX paid $60B in stock to lock down an AI dependency. They made a similar supply chain move in RF hardware via order-tied warrants for 10% of FTC. Filtronic has a $62.5M backlog, 30% EBITDA margins, locked-in revenue through 2028, and is priced like a regional UK supplier instead of a critical infrastructure node for Starlink.

--------------------------- The Cursor acquisition shows exactly how SpaceX handles mission-critical dependencies. They identify the bottlenecks, take a position, and bring them into the ecosystem. But while most of you are focusing strictly on software or launch providers, SpaceX already applied this exact playbook to their physical satellite infrastructure.

Filtronic (OTC: FLTCF / LSE: FTC) manufactures the E-band Gallium Nitride (GaN) solid-state power amplifiers that power Starlink's ground gateways. SpaceX didn't sign a standard supply agreement with them, they took a piece of the company.

1. The M&A Playbook in Hardware

SpaceX holds warrants to subscribe for up to 10% of Filtronic's total share capital, structured to vest automatically as SpaceX places more orders. The first 5% tranche has already fully vested.

Tier-1 customers don't demand 10% warrant packages unless they are securing a supply chain dependency they cannot afford to lose. If the Cursor deal is a $60B move to control an AI coding dependency, FTC represents the exact same logic applied to hardware. The difference is that it's trading at a sub-$1B valuation on the London Stock Exchange, where you might easily overlook it if you only trade the US boards.

2. Contracted Revenue Visibility

Filtronic recently secured a $62.5M purchase order from SpaceX for their next-gen E-band amplifiers. This is their largest single order to date, following previous orders of $19M and $8.4M over the last two years. The order velocity is clearly compounding.

These are firm, contracted purchase orders that lock in revenue through FY2028. In their recent half-year update, management confirmed that roughly 90% of their FY2026 revenue is already covered by the existing order book. If you're used to looking at small-cap hardware companies, you know that level of forward visibility is incredibly rare.

3. Moat and Replaceability

Scaling E-band millimeter-wave hardware to meet Starlink's global gateway volume requires highly specialized advanced packaging and thermal management. Filtronic’s latest amplifiers deliver roughly double the output power of legacy systems.

The warrant structure is the real proof of the moat. If SpaceX could easily dual-source these specific components from a domestic US competitor without friction, they wouldn't give up equity warrants. They would just switch suppliers.

4. Actual Profitability

Unlike the vast majority of the space sector burning cash on pre-revenue pipelines, Filtronic is highly profitable today.

In FY2025, they delivered £56.3m in revenue with £17.0m Adjusted EBITDA, which is a 30% margin. Their recent H1 2026 results showed £25.3m in revenue and £5.1m EBITDA. The temporary margin contraction in H1 happened specifically because they are self-funding an expansion into a new advanced manufacturing facility to scale up for the Starlink backlog.

They have a clean balance sheet with £8.2m in net cash (excluding leases) and zero dilutive raises. They are funding their own capacity expansion through Starlink order flow.

The Bear Case

The obvious risk here is customer concentration. Filtronic’s growth trajectory is heavily dependent on SpaceX. If that relationship deteriorates or SpaceX decides to build these amplifiers entirely in-house down the line, your thesis breaks.

However, the warrant structure aligns their financial interests, and the order progression from $8.4M to $62.5M indicates that SpaceX is deepening the relationship rather than pulling away.

How to Buy It

Because the primary listing is the AIM market in London, it probably won't show up on your basic US retail trading apps. If you're in the US, you have to use the OTC ticker FLTCF via a broker like Fidelity or Interactive Brokers. OTC liquidity can be thin, so make sure you use limit orders rather than market orders.