Key Takeaways:
BlackSky Technology reported Q2 revenue of $33.3 million, up 50% from a year earlier, as Gen-3 satellite adoption lifted adjusted EBITDA to $4.7 million.
"The results reflect strong demand for our Gen-3 services and the operating leverage in our model," Chief Executive Officer Brian O'Toole said.
Space-based intelligence and AI services, the company's largest segment, rose 36% to $24.5 million, reaching a $100 million annual run rate for high-margin subscription revenue. Mission solutions jumped 386% to $5.1 million, while advanced technology programs gained 17% to $3.7 million. Adjusted EBITDA improved $7.5 million from a $2.8 million loss a year earlier, with margins at 14.2%, as cash operating expenses held near flat at $20 million.
Shares rose 10.4% after the release. The company reaffirmed full-year guidance of $130 million to $150 million in revenue and $12 million to $24 million in adjusted EBITDA, implying a sharp acceleration from the $54.1 million and negative $0.4 million reported in the first half. BlackSky ended June with $244.1 million in cash and short-term investments after raising $150 million through an at-the-market equity offering.
International revenue grew 150% year over year, while U.S. government revenue stayed flat as the EOCL contract held at last year's run rate. BlackSky secured up to $200 million in year-to-date bookings, including an eight-figure National Reconnaissance Office contract to accelerate development of its AROS digital mapping system, targeted for launch in 2028.
Gen-3 satellites are delivering 35-centimeter imagery at about a fifth of the cost of legacy platforms, O'Toole said, and almost all large customers now use both Gen-2 and Gen-3 capacity. The next two Gen-3 satellites are scheduled to launch in the third quarter, with the company targeting an hourly revisit service from a commercial constellation of 12 to 15 satellites.
The GAAP net loss narrowed to $20.8 million, or 54 cents a share, from $41.2 million, or $1.27, a year earlier. The improvement was partly driven by a smaller derivative loss of $10.5 million, down from $24.4 million, which fluctuates with the company's stock price. Operating loss narrowed to $7.8 million from $13.9 million.
BlackSky raised $150 million by issuing 3.6 million shares through its at-the-market program, lifting shares outstanding to 40.6 million from 35.9 million at the end of 2025. First-half operating activities used $5.9 million of cash, compared with $20 million generated a year earlier, as contract liabilities declined $8 million. Capital expenditures reached $15.4 million in the quarter, with satellite work in process rising to $95.6 million from $80.7 million.
The reaffirmed outlook requires second-half revenue of roughly $76 million to $96 million and adjusted EBITDA of $12 million to $24 million, a step-up that depends on continued Gen-3 adoption and the two satellite launches scheduled for the third quarter. Management said revenue will build incrementally as additional satellites improve service capacity, with every incremental dollar from the $100 million subscription run rate flowing to the bottom line.
This article is for informational purposes only and does not constitute investment advice.
