BlackSky Reports Second Quarter 2026 Result 

Total Revenue Grows 50% YoY Driven by Demand for Gen-3

International Revenue Grows 200% YoY from Diversified Customer Base

Space-Based Intelligence Revenue Grows 50% Sequentially Accelerating Contribution Performance

BlackSky Technology Inc.  announced results for the second quarter ended June 30, 2026.

Strong sales performance is accelerating revenue and earnings growth, driven by a 50% growth in space-based intelligence services from Q1.

“Strong sales performance is accelerating revenue and earnings growth, driven by a 50% growth in space-based intelligence services from Q1,” said Brian E. O’Toole, BlackSky CEO. “With the exceptional performance of Gen-3, we’re seeing momentum across all aspects of our business resulting in an expanding customer base, a growing pipeline, and increasing backlog. During the quarter, we added approximately $150 million of cash to further strengthen our balance sheet and cash position.”

Second Quarter Financial Highlights:

Total revenue of $33 million, up 50% from prior year

Record space-based intelligence & AI services revenue of $25 million

Cash balance of $244 million as of June 30, 2026

Recent Highlights

Awarded an eight-figure contract with the NRO to accelerate development of AROS, a high-performance digital mapping system, as a critical commercial alternative for foundation imagery

Converted another international pilot program into a seven-figure subscription contract for Gen-3 and Gen-2 Assured and On-Demand imagery and analytic services

Secured renewal awards over seven-figures supporting NGA Luno program with location, positioning, and facility monitoring services

Won several six-figure contracts with commercial customers for global monitoring and analytic services

Awarded multiple U.S. R&D contracts to field mission-critical Gen-3 AI solutions to enhance customer’s space-based tactical ISR operations

Continued to win new orders through the U.S. Space Force Global Data Marketplace

Next two Gen-3 satellites expected to launch in the third quarter

Financial Results

Revenues

Total revenue for the second quarter of 2026 was $33.3 million, compared to $22.2 million in the second quarter of 2025. The year-over-year increase of $11.1 million, or 50%, was primarily driven by record space-based intelligence and AI services revenue from accelerating customer adoption of Gen-3 subscription services.

Cost of Sales(1)

Total cost of sales as a percentage of revenue improved to 27% for the second quarter of 2026, compared to 28% for the second quarter of 2025.

Operating Expenses

Operating expenses for the second quarter of 2026 were $32.1 million, which included $4.1 million of non-cash stock-based compensation expense and $8.0 million in depreciation and amortization expenses. Operating expenses for the second quarter of 2025 were $29.9 million, which included $3.3 million in non-cash stock-based compensation expense and $7.2 million in depreciation and amortization expenses. Excluding the non-cash stock-based compensation and depreciation and amortization expenses from both years, cash operating expenses(2) for the second quarter of 2026 were $20.0 million, essentially flat compared to $19.4 million in the prior year quarter.

Net Loss

Net loss for the second quarter of 2026 was $20.8 million, compared to a net loss of $41.2 million for the second quarter of 2025. The year-over-year improvement of $20.4 million was primarily due to changes in the gain/(loss) on derivatives, which are driven by fluctuations in the Company’s equity warrants and other equity instruments that are measured at fair value and driven by the Company’s common stock price.

Adjusted EBITDA(2)

Adjusted EBITDA for the second quarter of 2026 was $4.7 million, a 14.2% margin on $33.3 million in revenue. The year-over-year increase of $7.5 million was primarily driven by increased revenues of high-margin space-based intelligence and AI services.

Balance Sheet & Capital Expenditures

As of June 30, 2026, cash and cash equivalents, restricted cash, and short-term investments totaled $244.1 million. During the quarter, the Company raised $150 million from the issuance of 3.6 million shares under the Company’s at-the-market equity program. Capital expenditures for the second quarter of 2026 were 15.4 million.

(1) Cost of sales is defined as space-based intelligence & AI services costs, excluding depreciation and amortization, mission solutions costs, excluding depreciation and amortization, and advanced technology programs costs, excluding depreciation and amortization. 

(2) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below and reconciliation table at the end of this press release.

2026 Outlook

BlackSky is reaffirming its full year 2026 outlook, which was previously updated on May 7, 2026. The Company expects full year revenue between $130 million and $150 million, Adjusted EBITDA between $12 million and $24 million, and capital expenditures between $50 million and $60 million.

BlackSky has not reconciled its non-GAAP financial outlook to the most directly comparable GAAP measures because certain reconciling items, such as stock-based compensation expenses, change in fair value of warrant liabilities, and depreciation and amortization are uncertain or out of BlackSky’s control and cannot be reasonably predicted. The actual amount of these expenses will have a significant impact on BlackSky’s future GAAP financial results. Accordingly, a reconciliation of BlackSky’s non-GAAP outlook to the most comparable GAAP measures is not available without unreasonable efforts.