BLACKSKY REPORTS THIRD QUARTER 2026 RESULTS
BlackSky Technology Inc. (BKSY) filed an SEC Form 8-K — Results of Operations and Financial Condition. BLACKSKY REPORTS THIRD QUARTER 2026 RESULTS Record Quarterly Revenue of $43 million, Up 118% YoY and 29% Sequentially Net Income of $19 million and Record Adjusted EBITDA of $13 million Company Raises Full-Year Guidance for Revenue and Adjusted EBITDA HERNDON, VA – November 5, 20
How this was made
The 30-second read
Why it matters
The raised guidance and strong earnings beat are likely to attract short‑term buying, especially from investors focused on high‑growth space data firms.
Market read
First‑report earnings with raised outlook for a niche high‑growth tech company; immediate price impact expected.
What to watch
Potential execution risk in scaling Gen‑3 satellites and reliance on large government contracts.
Record Quarterly Revenue of $43 million, Up 118% YoY and 29% Sequentially Net Income of $19 million and Record Adjusted EBITDA of $13 million Company Raises Full-Year Guidance for Revenue and Adjusted EBITDA
Third-quarter total revenue increased 118% year over year and 29% sequentially, adjusted EBITDA reached a record $12.8 million, and the company raised its full-year revenue and Adjusted EBITDA outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $42.8M | 29% | 118% |
| Space-based intelligence & AI services revenue, three months ended September 30, 2026 (in thousands)GAAP | $32.74M | – | – |
| Mission solutions revenue, three months ended September 30, 2026 (in thousands)GAAP | $4.72M | – | – |
| Advanced technology programs revenue, three months ended September 30, 2026 (in thousands)GAAP | $5.38M | – | – |
| Cost of sales as a percentage of revenue, three months ended September 30, 2026other | 21% | – | – |
| Total costs and expenses, three months ended September 30, 2026 (in thousands)GAAP | $42.44M | – | – |
| Operating expenses, three months ended September 30, 2026 (in thousands)GAAP | $33.36M | – | – |
| Cash operating expenses, three months ended September 30, 2026 (in thousands)non-GAAP | $21.44M | – | – |
| Depreciation and amortization, three months ended September 30, 2026 (in thousands)GAAP | $7.51M | – | – |
| Stock-based compensation expense, three months ended September 30, 2026 (in thousands)GAAP | $4.71M | – | – |
| Operating income (loss), three months ended September 30, 2026 (in thousands)GAAP | $405K | – | – |
| Gain (loss) on derivatives, three months ended September 30, 2026 (in thousands)GAAP | $19.69M | – | – |
| Net income (loss), three months ended September 30, 2026 (in thousands)GAAP | $18.52M | – | $33.8 million improvement |
| Basic earnings (loss) per share, three months ended September 30, 2026GAAP | $ 0.45 | – | – |
| Diluted earnings (loss) per share, three months ended September 30, 2026GAAP | $ 0.10 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $12.8M | – | $17.3 million increase |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 29.9% | – | – |
| Capital expenditures, three months ended September 30, 2026GAAP | $15.4M | – | – |
| Total revenue, nine months ended September 30, 2026 (in thousands)GAAP | $96.93M | – | – |
| Space-based intelligence & AI services revenue, nine months ended September 30, 2026 (in thousands)GAAP | $73.77M | – | – |
| Mission solutions revenue, nine months ended September 30, 2026 (in thousands)GAAP | $11.85M | – | – |
| Advanced technology programs revenue, nine months ended September 30, 2026 (in thousands)GAAP | $11.32M | – | – |
| Operating income (loss), nine months ended September 30, 2026 (in thousands)GAAP | −$25.93M | – | – |
| Net income (loss), nine months ended September 30, 2026 (in thousands)GAAP | −$31.98M | – | – |
| Basic earnings (loss) per share, nine months ended September 30, 2026GAAP | $ (0.83) | – | – |
| Diluted earnings (loss) per share, nine months ended September 30, 2026GAAP | $ (0.83) | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026 (in thousands)non-GAAP | $12.41M | – | – |
| Cash operating expenses, nine months ended September 30, 2026 (in thousands)non-GAAP | $60.25M | – | – |
| Net cash used in operating activities, nine months ended September 30, 2026 (in thousands)GAAP | −$2.33M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Space-based intelligence & AI servicesAccelerating customer demand for Gen-3 drove record space-based intelligence and AI services revenue of $32.7 million. | $32.74M | – | – |
| Mission solutionsNot stated. | $4.72M | – | – |
| Advanced technology programsNot stated. | $5.38M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full year 2026 outlook
- Revenuebetween $140 million and $150 million
- NoteAdjusted EBITDA: between $18 million and $24 million
- NoteCapital expenditures: between $50 million and $60 million
What drove it
- Accelerating customer demand for Gen-3 drove record space-based intelligence and AI services revenue of $32.7 million.
- The improvement in cost of sales as a percentage of revenue reflects operating leverage from growth in high-margin space-based intelligence services.
- The year-over-year increase in cash operating expenses was primarily due to planned incremental investments in the business.
- The year-over-year improvement in net income was driven by strong operating results and changes in the gain/(loss) on derivatives.
- The Adjusted EBITDA increase was primarily driven by strong revenue growth, expanding gross margins, and operating leverage across the business.
- The company deployed a fifth Gen-3 satellite, achieving first light and revenue generating operations within 24 hours.
Concerns
- Net income included a $ 19,690 gain on derivatives in the third quarter of 2026.
- The company reported a net loss of $ (31,982) for the nine months ended September 30, 2026.
- Capital expenditures were $15.4 million in the third quarter of 2026, while full-year capital expenditure guidance was maintained at between $50 million and $60 million.
- Forward-looking risks identified by the company include long and unpredictable sales cycles, customer demand, U.S. government budget uncertainties, and estimating resources for fixed-price contracts, expenses, and other operational and liquidity needs.
What to watch
- Execution against full-year 2026 revenue guidance of between $140 million and $150 million.
- Execution against full-year 2026 Adjusted EBITDA guidance of between $18 million and $24 million.
- Capital expenditures against maintained full-year guidance of between $50 million and $60 million.
- Further Gen-3 customer conversions, including assured subscriptions, renewals, and sovereign solutions.
- The $1 billion investment through a consortium that includes France and the UAE for an initial constellation of 50 satellites.
Balance sheet and cash flow
- Cash and cash equivalents, restricted cash, and short-term investments totaled $231.1 million as of September 30, 2026.
- Cash and cash equivalents were $ 27,419 as of September 30, 2026, compared to $ 42,445 as of December 31, 2025.
- Restricted cash was $ 18,327 as of September 30, 2026, compared to $ 1,103 as of December 31, 2025.
- Short-term investments were $ 185,370 as of September 30, 2026, compared to $ 82,006 as of December 31, 2025.
- Long-term debt, net of current portion, was $ 204,504 as of September 30, 2026, compared to $ 193,180 as of December 31, 2025.
- Debt, current portion, was $ 15,361 as of September 30, 2026, compared to $ 7,937 as of December 31, 2025.
- Net cash used in operating activities was $ (2,325) for the nine months ended September 30, 2026, compared to $ (18,992) in the prior-year period.
- Net cash used in investing activities was $ (147,197) for the nine months ended September 30, 2026, compared to $ (110,410) in the prior-year period.
- Net cash provided by financing activities was $ 151,720 for the nine months ended September 30, 2026, compared to $ 144,942 in the prior-year period.
Analysis
BlackSky reported third-quarter total revenue of $42.8 million, compared with $19.6 million in the third quarter of 2025. The company said revenue was up 118% year over year and 29% sequentially. Space-based intelligence & AI services generated $32.7 million, and management attributed the revenue advance to accelerating customer demand for Gen-3.
The cost of sales ratio improved to 21% from 35%, which the company attributed to operating leverage from higher-margin space-based intelligence services. Operating income was $ 405, compared with an operating loss of $ (16,826). Cash operating expenses were $ 21,443 versus $ 18,283, with the increase attributed to planned incremental investments. Adjusted EBITDA was a record $12.8 million, with a 29.9% margin, compared with $ (4,484) a year earlier.
GAAP net income was $ 18,515, compared with a net loss of $ (15,340). The results included a $ 19,690 gain on derivatives, and the company specifically identified changes in derivative gains and losses as a driver of the year-over-year net-income improvement. For the first nine months, BlackSky reported a net loss of $ (31,982), although Adjusted EBITDA was $ 12,415 and net cash used in operating activities was $ (2,325).
Liquidity included $231.1 million of cash and cash equivalents, restricted cash, and short-term investments as of September 30, 2026. The company reported $15.4 million of third-quarter capital expenditures and maintained full-year capital expenditure guidance of between $50 million and $60 million. It raised full-year revenue guidance to between $140 million and $150 million and Adjusted EBITDA guidance to between $18 million and $24 million for the second time this year. The principal execution items are Gen-3 demand conversion, capacity deployment, capital expenditures, and the sales-cycle and government-budget risks cited by the company.
Management, verbatim
Building on strong Gen-3 sales performance, we delivered an exceptional third quarter with record revenue, strong margin growth, and record adjusted EBITDA.
Brian E. O’Toole, BlackSky CEO
Real-time intelligence is more mission-critical than ever, and we are winning customers because of our demonstrated ability to deliver assured, actionable intelligence with speed, reliability, and clarity. As we scale our Gen-3 capabilities, we expect to continue our momentum capitalizing on the growing global demand for our space-based intelligence and sovereign solutions.
Brian E. O’Toole, BlackSky CEO
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of reported results with prior guidance is unavailable.
- GAAP gross margin was not reported.
- Free cash flow was not reported.
- Third-quarter operating cash flow was not reported.
- Capital returns, including share repurchases and dividends, were not reported.
- A reconciliation of non-GAAP full-year Adjusted EBITDA guidance to the most directly comparable GAAP measure was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
BlackSky Technology Inc. (NYSE:BKSY) filed an 8‑K reporting its Q3 2026 results and updated guidance.
Ticker impact
BlackSky reported record Q3 revenue of $43 M and raised full‑year 2026 revenue and Adjusted EBITDA guidance.
likely upside as the market prices in the raised guidance
The company posted a 118% YoY revenue jump, turned to net income, and lifted its full‑year outlook, which typically drives buying pressure.
Market effects
Strengthens the space‑based intelligence sector, suggesting higher demand for satellite data services.
Positive for U.S. technology and defense contractors that may partner with BlackSky.
Highlights growing global demand for real‑time geospatial intelligence.
Counterpoint
If the revenue surge is not sustainable, the stock could face a pull‑back after the initial rally.
Key entities
- companyBlackSky Technology Inc.
Provider of real‑time space‑based intelligence services.
