Press release·08/06/2026 20:42:03

Financial Performance Overview

BlackSky, a leading provider of space-based intelligence and AI services, has reported its financial results for the three and six months ended June 30, 2026. The company has seen strong growth in its business, driven by increasing demand for its space-based intelligence and AI services, as well as its mission solutions and advanced technology programs.

Revenue for the second quarter of 2026 was $33.3 million, up 50.1% from the same period in 2025. For the first half of 2026, revenue reached $54.1 million, a 4.5% increase compared to the first six months of 2025. This growth was primarily driven by new contracts for BlackSky’s space-based intelligence and AI services, as well as an increase in mission solutions revenue.

Despite the revenue growth, BlackSky reported a net loss of $20.8 million for the second quarter and $50.5 million for the first half of 2026. These losses were largely due to non-cash expenses, including a $10.5 million loss on derivatives and $8.0 million in depreciation and amortization. However, the company’s Adjusted EBITDA, a non-GAAP measure that excludes these and other non-recurring items, was positive $4.7 million in the second quarter, compared to a loss of $2.8 million in the same period last year.

Revenue Trends

BlackSky’s revenue is generated from three main sources: space-based intelligence and AI services, mission solutions, and advanced technology programs.

Space-based intelligence and AI services revenue, which accounted for 73.6% of total revenue in the second quarter, increased by 36.3% year-over-year. This was driven by new contracts with existing customers for increased space-based tactical intelligence, surveillance, and reconnaissance capabilities.

Mission solutions revenue, which made up 15.3% of total revenue, saw a significant increase of 386.3% in the second quarter. This was primarily due to an increase in the rate of performance on two existing mission solutions contracts, as well as favorable estimate adjustments on certain programs.

Advanced technology programs revenue, representing 11.1% of total revenue, grew by 16.8% in the second quarter compared to the same period in 2025. This increase was largely due to revenue generated from several new contracts, partially offset by the completion of services on certain existing contracts.

Costs and Expenses

BlackSky’s costs and expenses are divided into three main categories: space-based intelligence and AI services costs, mission solutions costs, and advanced technology programs costs.

Space-based intelligence and AI services costs, excluding depreciation and amortization, increased by 55.9% in the second quarter and 41.8% in the first half of 2026 compared to the same periods in 2025. This was driven by increased labor and direct material costs to support the growing demand for these services.

Mission solutions costs, excluding depreciation and amortization, increased by 316.9% in the second quarter, reflecting the higher rate of performance on two mission solutions programs. However, these costs decreased by 61.0% in the first half of 2026 compared to the same period in 2025, largely due to the impact of one-time work in process costs recognized in the first quarter of 2025.

Advanced technology programs costs, excluding depreciation and amortization, decreased by 14.6% in the second quarter and 25.2% in the first half of 2026 compared to the same periods in 2025. This was mainly due to a decrease in direct labor costs as the timing of services performed on certain contracts changed.

Selling, general, and administrative expenses increased by 4.9% in the second quarter and 5.1% in the first half of 2026 compared to the same periods in 2025. This was primarily driven by an increase in stock-based compensation expense and higher selling and marketing costs, partially offset by lower salaries and benefits.

Research and development expenses increased significantly in the second quarter and first half of 2026 compared to the same periods in 2025, as BlackSky continued to invest in the development of its next-generation satellite and AI capabilities.

Depreciation and amortization expense increased by 10.9% in the second quarter and 19.4% in the first half of 2026 compared to the same periods in 2025. This was due to the launch of BlackSky’s Gen-3 satellites and continued investment in internal-use software.

Non-Operating Expenses

BlackSky’s non-operating expenses include losses on derivatives, interest income, and interest expense.

The loss on derivatives, which represents the change in fair value of the company’s warrants and other equity instruments, decreased by 57.0% in the second quarter and 16.9% in the first half of 2026 compared to the same periods in 2025. This was primarily due to fluctuations in BlackSky’s stock price.

Interest income increased by 99.1% in the second quarter and 89.8% in the first half of 2026 compared to the same periods in 2025, driven by higher short-term investment balances.

Interest expense increased by 10.1% in the second quarter and 13.8% in the first half of 2026 compared to the same periods in 2025, as BlackSky’s outstanding debt increased from $123.5 million as of June 30, 2025 to $217.2 million as of June 30, 2026.

Liquidity and Capital Resources

As of June 30, 2026, BlackSky had $36.9 million in cash and cash equivalents, $197.3 million in short-term investments, and $9.9 million in restricted cash, for a total of $244.1 million in short-term liquidity.

The company expects its current cash, short-term investments, and cash generated from operations to be sufficient to meet its working capital and capital expenditure needs for the foreseeable future. However, BlackSky’s long-term capital requirements will depend on factors such as its Gen-3 satellite production, launch and insurance costs, customer demand, and ongoing investments in technology infrastructure.

In July 2025, BlackSky issued $185.0 million in Convertible Senior Notes, which will mature in 2033 and bear interest at 8.25% per year. The company also entered into vendor financing agreements totaling $57.6 million to fund the costs of multiple satellite launches.

During the first half of 2026, BlackSky generated $160.2 million in net cash proceeds from equity issuances, including the sale of $165.0 million in Class A common stock under its ATM agreements. The company also used $144.9 million in net cash for investing activities, primarily for the purchase of short-term investments and capital expenditures related to satellite production and launch.

Outlook and Risks

BlackSky’s financial performance reflects the company’s continued investment in its space-based intelligence and AI capabilities, as well as its mission solutions and advanced technology programs. The growth in revenue, particularly from space-based intelligence and AI services, demonstrates the strong demand for BlackSky’s offerings in the current geopolitical environment.

However, the company’s net losses and the need for ongoing capital expenditures to support its satellite constellation and technology development indicate that BlackSky is still in a growth phase. The company’s ability to manage its costs, execute on its strategic initiatives, and continue to win new contracts will be critical to its long-term success.

Risks to BlackSky’s business include the potential for delays or cost overruns in its satellite production and launch activities, changes in customer demand, and competition from other space-based intelligence and analytics providers. The company’s reliance on debt and equity financing to fund its operations and growth also exposes it to market and credit risks.

Overall, BlackSky’s financial results demonstrate the company’s progress in building a leading position in the space-based intelligence and analytics market. However, the company will need to continue to execute effectively and manage its costs and capital requirements to achieve long-term profitability and sustainable growth.