Stonegate Updates Coverage on BlackSky Technology, Inc. (BKSY) 2Q25

Rhea-AI Summary

BlackSky Technology (NYSE:BKSY) reported mixed Q2 2025 results with revenue of $22.2M, matching consensus estimates, but missing on adjusted EBITDA at ($2.8M) and EPS at ($1.27). Imagery and Software Analytical Services revenue grew 2.9% year-over-year to $18.0M, while Professional Services revenue declined to $4.2M.

The company successfully launched its second Gen-3 satellite and maintains a strong $356M backlog, with 85% being international. Following an upsized $185M convertible note offering, BlackSky reaffirmed its FY25 guidance of $105M-$130M in revenue and adjusted EBITDA between breakeven and $10M, despite noting U.S. government budget uncertainties.

Positive

• Successfully launched second Gen-3 satellite with four more planned by year-end
• Strong backlog of $356M with 85% international composition
• Secured $185M through upsized convertible note offering
• Imagery revenue grew 2.9% year-over-year
• Maintained FY25 revenue guidance of $105M-$130M

Negative

• Adjusted EBITDA declined to ($2.8M) loss from $2.1M profit year-over-year
• Professional Services revenue dropped significantly from $7.5M to $4.2M
• EPS missed estimates at ($1.27) vs ($0.48) consensus
• Gross margins declined to 71.9% from 72.4% year-over-year
• Noted U.S. government budget volatility concerns

News Market Reaction

-0.70%

1 alert

-0.70% News Effect

-$4M Valuation Impact

$572M Market Cap

0.1x Rel. Volume

On the day this news was published, BKSY declined 0.70%, reflecting a mild negative market reaction. This price movement removed approximately $4M from the company's valuation, bringing the market cap to $572M at that time.

Data tracked by StockTitan Argus on the day of publication.

Dallas, Texas--(Newsfile Corp. - August 8, 2025) - BlackSky Technology, Inc. (NYSE: BKSY): Stonegate Capital Partners updates their coverage on BlackSky Technology, Inc. (NYSE: BKSY). BKSY reported revenue, adj EBITDA, and EPS of $22.2M, ($2.8)M, and ($1.27), respectively. This compares to our/consensus estimates of $22.2M/$22.2M, ($1.5)M/($1.3)M, and ($0.48)/($0.48). Imagery and Software Analytical Services revenue increased to $18.0M, up 2.9% y/y, reflecting growing demand and early access activity related to Gen-3 imagery. Professional and Engineering Services revenue declined to $4.2M from $7.5M in 2Q24, due to timing differences in milestone-based contract recognition. Adj. EBITDA had a loss of ($2.8M) versus a $2.1M profit in the prior year, reflecting lower professional services revenue and ongoing investment in Gen-3 and AROS initiatives. Consolidated gross margins fell slightly to 71.9%, a decrease from 72.4% in 2Q24.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• Successfully launched its second Gen-3 satellite, now delivering high-resolution imagery within 12 hours; four more Gen-3 satellites are expected to launch by year-end.
• Backlog reached $356M (85% international), and a strong pro forma cash position following a $185M upsized convertible note offering.
• BKSY reaffirmed its FY25 revenue guidance of $105M-$130M and adjusted EBITDA of breakeven to $10M, citing short-term U.S. government budget volatility.

Click image above to view full announcement.

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About Stonegate

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/261806

FAQ

What were BlackSky's (BKSY) Q2 2025 earnings results?

BlackSky reported revenue of $22.2M, adjusted EBITDA of ($2.8M), and EPS of ($1.27). While revenue met consensus estimates, both EBITDA and EPS missed analyst expectations.

How much backlog does BlackSky (BKSY) have in 2025?

BlackSky reported a backlog of $356M, with 85% coming from international customers.

What is BlackSky's (BKSY) revenue guidance for FY 2025?

BlackSky reaffirmed its FY25 revenue guidance of $105M-$130M and adjusted EBITDA guidance of breakeven to $10M.

How many Gen-3 satellites does BlackSky (BKSY) plan to launch in 2025?

BlackSky has successfully launched its second Gen-3 satellite and plans to launch four more Gen-3 satellites by the end of 2025.

What was BlackSky's (BKSY) convertible note offering size in 2025?

BlackSky completed an upsized convertible note offering of $185M, strengthening its cash position.