Third quarter 2026
Filed Nov 5, 2026Record 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.