BlackSky Technology, Inc. (NYSE: BKSY) has reported its financial results for the second quarter of 2025, revealing a complex picture of growth and investment. The company announced revenues of $22.2M, adjusted EBITDA of ($2.8)M, and EPS of ($1.27), figures that align with consensus estimates but reflect ongoing investments in technology and expansion. The imagery and software analytical services segment saw a 2.9% year-over-year increase to $18.0M, driven by growing demand for Gen-3 imagery, while professional and engineering services revenue declined to $4.2M from $7.5M in 2Q24 due to timing differences in contract recognition.
Significantly, BlackSky secured over $35.0M in new contracts during the quarter, expanding its total backlog to $356.0M, with approximately 85% of this coming from international customers. Notable achievements include a $24.0M award from the NGA Luno A monitoring program and the expansion into Latin America with a Gen-2/Gen-3 On-Demand contract. These developments underscore BlackSky's emerging role as a trusted intelligence partner on the global stage.
The company also made strides in its Gen-3 satellite technology, successfully launching its second Gen-3 satellite, which began delivering very-high resolution imagery within 12 hours of launch. With multiple early access agreements signed with international defense and intelligence customers, BlackSky is demonstrating the utility and reliability of its Gen-3 system. The third Gen-3 satellite is in final testing, with commercial availability expected by 4Q25.
Financially, BlackSky strengthened its balance sheet through a $185.0M upsized convertible note offering, reducing debt servicing costs and positioning the company for continued investment in its Gen-3 and AROS initiatives. The company reaffirmed its FY25 revenue guidance of $105M–$130M and adjusted EBITDA of breakeven to $10M, anticipating stronger performance in the second half of the year driven by increased Gen-3 availability and backlog conversion.
Stonegate Capital Partners' analysis, utilizing a DCF Model and EV/EBITDA comp analysis, suggests a valuation range for BlackSky of $22.97 to $30.56, with a mid-point of $25.58. This coverage update highlights BlackSky's strategic positioning and growth potential in the rapidly evolving space-based intelligence sector. For more information, visit https://www.blacksky.com.
