second quarter of 2026
Filed Aug 6, 2026BLACKSKY REPORTS SECOND QUARTER 2026 RESULTS Total Revenue Grows 50% YoY Driven by Demand for Gen-3
Total revenue grew 50% year over year, space-based intelligence and AI services reached a record $25 million, Adjusted EBITDA was positive, and the Company reaffirmed its full-year outlook while adding $150 million through its at-the-market equity program.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $33.3 million | – | $11.1 million, or 50% |
| International revenue growthGAAP | 200% YoY | – | 200% YoY |
| Total cost of sales as a percentage of revenueGAAP | 27% | – | – |
| Operating expensesGAAP | $32.1 million | – | – |
| Stock-based compensation expense included in operating expensesGAAP | $4.1 million | – | – |
| Depreciation and amortization expenses included in operating expensesGAAP | $8.0 million | – | – |
| Cash operating expensesnon-GAAP | $20.0 million | – | essentially flat |
| Net lossGAAP | $20.8 million | – | $20.4 million improvement |
| Adjusted EBITDAnon-GAAP | $4.7 million | – | $7.5 million |
| Adjusted EBITDA marginnon-GAAP | 14.2% | – | – |
| Cash and cash equivalents, restricted cash, and short-term investmentsGAAP | $244.1 million | – | – |
| Capital expendituresGAAP | 15.4 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Space-based intelligence & AI servicesAccelerating customer adoption of Gen-3 subscription services. | $25 million | 50% | – |
full year 2026 outlook
- Revenuebetween $130 million and $150 million
- NoteAdjusted EBITDA between $12 million and $24 million
- Notecapital expenditures between $50 million and $60 million
What drove it
- Record space-based intelligence and AI services revenue was driven by accelerating customer adoption of Gen-3 subscription services.
- BlackSky 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.
- The Company was awarded an eight-figure contract with the NRO to accelerate development of AROS.
- The Company secured renewal awards over seven-figures supporting the NGA Luno program.
- Next two Gen-3 satellites are expected to launch in the third quarter.
Concerns
- Net-loss improvement was primarily due to changes in the gain/(loss) on derivatives driven by fluctuations in equity warrants and other equity instruments measured at fair value and driven by the Company’s common stock price.
- The Company cites long and unpredictable sales cycles, customer demand, U.S. government budget uncertainties, and fixed-price contract resource estimates as risks.
- The Company stated that stock-based compensation expenses, change in fair value of warrant liabilities, and depreciation and amortization are uncertain or out of its control and cannot be reasonably predicted.
What to watch
- Execution against full year 2026 revenue guidance of between $130 million and $150 million.
- Execution against full year 2026 Adjusted EBITDA guidance of between $12 million and $24 million.
- Capital expenditures relative to full year 2026 guidance of between $50 million and $60 million.
- Expected third-quarter launch of the next two Gen-3 satellites.
- Conversion of the growing pipeline and backlog into subscription and contract revenue.
Balance sheet and cash flow
- Cash and cash equivalents, restricted cash, and short-term investments totaled $244.1 million as of June 30, 2026.
- 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.
Analysis
BlackSky reported a strong second quarter, with total revenue of $33.3 million versus $22.2 million in the second quarter of 2025. The $11.1 million, or 50%, year-over-year increase was primarily driven by record space-based intelligence and AI services revenue from accelerating adoption of Gen-3 subscription services. The Company reported record space-based intelligence and AI services revenue of $25 million, and described that revenue stream as growing 50% sequentially.
The revenue mix supported improved operating performance. Total cost of sales as a percentage of revenue improved to 27% from 28%. Operating expenses rose to $32.1 million from $29.9 million, but cash operating expenses were $20.0 million compared with $19.4 million and were described as essentially flat. Adjusted EBITDA was $4.7 million, with a 14.2% margin on $33.3 million in revenue, and increased $7.5 million year over year.
GAAP net loss was $20.8 million, compared with a net loss of $41.2 million in the second quarter of 2025. The Company attributed the $20.4 million year-over-year improvement primarily to changes in the gain/(loss) on derivatives associated with equity warrants and other equity instruments measured at fair value. This means the net-loss improvement includes a material effect outside the core operating revenue and expense trends.
Liquidity increased materially during the quarter. Cash and cash equivalents, restricted cash, and short-term investments totaled $244.1 million as of June 30, 2026, after the Company raised $150 million through issuance of 3.6 million shares under its at-the-market equity program. Capital expenditures were 15.4 million. The Company reaffirmed full-year revenue guidance of between $130 million and $150 million, Adjusted EBITDA guidance of between $12 million and $24 million, and capital-expenditure guidance of between $50 million and $60 million.
Commercial momentum included an eight-figure NRO contract, a seven-figure international subscription conversion, renewal awards over seven-figures for the NGA Luno program, and additional commercial and U.S. R&D awards. Management also expects the next two Gen-3 satellites to launch in the third quarter. Key execution items are Gen-3 adoption, conversion of pipeline and backlog, delivery against the reaffirmed outlook, and management of the sales-cycle, customer-demand, and U.S. government budget risks identified in the release.
Management, verbatim
Strong sales performance is accelerating revenue and earnings growth, driven by a 50% growth in space-based intelligence services from Q1.
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.
Brian E. O’Toole, BlackSky CEO
Not in the filing
stated, not guessed- GAAP gross margin
- Dollar amount of total cost of sales
- GAAP operating income or loss
- GAAP diluted EPS
- Non-GAAP EPS
- Operating cash flow
- Free cash flow
- Debt balance
- Share repurchases
- Dividends
- Prior-quarter total revenue
- Prior-quarter operating expenses
- Prior-quarter net loss
- Prior-year Adjusted EBITDA
- Dollar amount of international revenue
- Revenue by Mission Solutions, Advanced Technology Programs, or other operating segments
- Full-year 2026 gross-margin, operating-expense, and tax-rate guidance
- Previous-release outlook for comparison
- CFO commentary
AlphaAI analysis generated 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 cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.