BlackSky Technology Reports Mixed Q2 2025 Results Amid Strategic Advances
TL;DR
BlackSky Technology's $35.0M in new contracts and $356.0M backlog position it as a leader in global intelligence and satellite imagery services.
BlackSky reported $22.2M revenue with a $2.8M adj EBITDA loss, highlighting growth in imagery services and investments in Gen-3 and AROS initiatives.
BlackSky's advancements in satellite technology and international contracts enhance global security and intelligence, contributing to a safer and more informed world.
BlackSky's second Gen-3 satellite delivers 35cm-class imagery within 12 hours of launch, showcasing rapid deployment and high-resolution capabilities.
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BlackSky Technology, Inc. (NYSE: BKSY) has unveiled its second-quarter financial results for 2025, presenting a mixed bag of performance metrics alongside significant strides in satellite technology and contract acquisitions. The company reported revenues of $22.2M, adjusted EBITDA of ($2.8)M, and EPS of ($1.27), aligning with revenue consensus estimates but marking a downturn in adjusted EBITDA from the previous year's $2.1M profit. This shift is largely attributed to reduced professional services revenue and continued investments in Gen-3 and AROS initiatives.
Despite these challenges, BlackSky's Imagery and Software Analytical Services revenue experienced a 2.9% year-over-year increase to $18.0M, fueled by rising demand and early access activities related to Gen-3 imagery. However, Professional and Engineering Services revenue saw a decline to $4.2M from $7.5M in 2Q24, due to timing differences in milestone-based contract recognition. The company's consolidated gross margins also slightly decreased to 71.9% from 72.4% in the prior year.
Strategic contract wins have played a pivotal role in reinforcing BlackSky's market position, with over $35.0M in new contracts secured in 2Q25, expanding its total backlog to $356.0M. Notably, approximately 85% of this backlog originates from international customers, underscoring the company's expansive global footprint. Among these achievements are a $24.0M NGA Luno A monitoring award and an expansion into Latin America with a Gen-2/Gen-3 On-Demand contract. Furthermore, BlackSky has advanced its Gen-3 architecture through a follow-on U.S. Navy research award focused on optical inter-satellite link (OISL) technology.
The successful launch and commissioning of its second Gen-3 satellite represent a significant milestone for BlackSky, with the satellite delivering very-high resolution (35cm-class) imagery within 12 hours of launch. The company is on schedule to deploy six Gen-3 satellites in 2025 and eight by early 2026, with commercial availability anticipated in 4Q25. This progress is bolstered by a strengthened balance sheet, following a $185.0M upsized convertible note offering, positioning BlackSky for sustained investment in its satellite constellation.
BlackSky has reaffirmed its FY25 revenue guidance of $105M–$130M and adjusted EBITDA of breakeven to $10M, expecting stronger second-half revenue driven by increased Gen-3 availability and backlog conversion. These strategic advancements and financial strategies highlight BlackSky's dedication to maintaining a competitive edge in the rapidly evolving satellite imagery and intelligence industry.
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