BlackSky Technology Reports Mixed Q3 Results Amid International Contract Growth

BlackSky Technology, Inc. reported third-quarter revenue of $19.6 million with adjusted EBITDA of negative $4.5 million and earnings per share of negative $0.44, according to coverage updates from Stonegate Capital Partners. These results fell short of analyst expectations across key metrics, with revenue missing consensus estimates of $28.6 million and adjusted EBITDA declining from a $0.7 million profit in the prior year period.

The company's imagery and software analytical services revenue decreased to $15.8 million, representing an 8.6% year-over-year decline. This reduction was primarily attributed to expected decreases in National Reconnaissance Office EOCL tasking and broader U.S. government budget uncertainties that affected near-term imagery orders. Professional and engineering services revenue also declined to $3.8 million from $5.2 million in the second quarter of 2024, largely due to project timing and milestone-based revenue recognition patterns.

Despite the quarterly challenges, BlackSky secured over $60 million in new contracts during the third quarter, growing its total backlog to $322.7 million. Notably, approximately 91% of this backlog comes from international customers, signaling a strategic shift toward global markets. Key contract wins included a multi-year agreement valued at over $30 million with a strategic international defense customer for Gen 3 tactical ISR services and a new multimillion-dollar Gen 3 imagery award with a U.S. customer.

The company's technological advancement continues with the imminent launch of its third Gen-3 satellite, expected to be operational by year-end. BlackSky remains on track to deploy a 12-satellite commercial constellation by the end of 2025, with management highlighting rising demand for Gen-3 services including high-cadence tasking and AI-enabled analytics. Additional contract activity included a seven-figure Luno A delivery order for AI-enabled change detection and a space domain awareness expansion with HEO, details of which can be found at https://www.blacksky.com.

Financially, BlackSky maintained $147.6 million in cash, restricted cash, and short-term investments at quarter-end, bolstered by net proceeds from an upsized convertible note offering and warrant exercises. The company reported $43.4 million in unbilled contract assets, with $36.0 million expected to be collected within the next twelve months. Capital expenditures totaled $15.0 million for the quarter and $33.9 million year-to-date, supporting the ongoing satellite deployment program.

Management maintained full-year 2025 guidance projecting revenue between $105 million and $130 million, adjusted EBITDA ranging from breakeven to $10 million, and capital expenditures of $60 million to $70 million. The company anticipates a stronger fourth quarter driven by international demand, Gen 3 satellite availability, and conversion of its substantial contract backlog. Stonegate Capital Partners' valuation analysis, available at https://www.stonegatecp.com, indicates a price target range of $24.60 to $30.40 based on discounted cash flow modeling and $23.26 to $28.18 based on EV/EBITDA comparables.

The mixed quarterly results highlight the evolving nature of the geospatial intelligence market, where near-term government budget uncertainties contrast with growing international demand for advanced satellite imagery and analytics services. BlackSky's strategic pivot toward international defense and intelligence customers, combined with its ongoing constellation expansion, positions the company to capitalize on the increasing global need for real-time earth observation capabilities across military, government, and commercial applications.