BlackSky Technology (NYSE:BKSY) announced robust results for the fourth quarter of 2025, marking what the company described as a “near record” performance. Key drivers for this success include increased customer adoption of its Gen-3 satellite imagery and AI-enabled analytics. During the earnings call, CEO Brian O’Toole and CFO Henry Dubois highlighted significant international demand, a rising backlog, and consistent positive adjusted EBITDA over the past two years.
Gen-3 Satellites Boost Customer Engagement
Central to BlackSky’s recent momentum is the deployment of its Gen-3 satellites. O’Toole noted that these satellites are delivering “proven on-orbit 35 centimeter imaging performance,” surpassing customer expectations. In 2025, BlackSky successfully launched and commissioned three Gen-3 satellites. Notably, the latest satellite started providing high-resolution imagery within 12 hours of launch and entered commercial operations within three weeks.
O’Toole indicated that the company is focusing on three growth areas: space-based intelligence and AI services, mission solutions, and advanced technology programs. He anticipates that space-based intelligence and AI services will contribute approximately 60% to 70% of revenue, while mission solutions will account for around 25% and advanced technology programs for about 15%.
Strong Financial Performance and Future Outlook
During the call, management revealed that BlackSky secured an impressive $240 million in contract bookings throughout 2025, primarily from international multiyear contracts. The company’s backlog increased to $345 million, providing significant revenue visibility. Dubois pointed out that approximately $75 million of this backlog is expected to be recognized in 2026.
Recent customer developments included the conversion of early-access Gen-3 pilots into long-term subscriptions. O’Toole reported that a new international customer, initially starting with a small pilot, quickly expanded to a “seven-figure quarterly run rate.” The company is also in the process of integrating Gen-3 access into a previously announced $100 million multiyear subscription contract.
In terms of mission solutions, BlackSky signed an “eight-figure” multiyear contract with a new international client, which includes a Gen-3 satellite and associated services. O’Toole mentioned that the company recognized a substantial part of the contract’s revenue in Q4 due to immediate deliveries.
For Q4 2025, BlackSky reported revenue of $35.2 million, a 16% increase from the previous year. This growth stemmed from several factors, including revenue from new international contracts, milestone achievements in Gen-3 integration, and increased international subscription usage. Full-year revenue stood at $106.6 million, with international revenue experiencing over 50% growth year-on-year.
Operating expenses for Q4 reached $17.7 million, slightly higher than the $16.9 million reported a year earlier. The full-year operating expenses totaled $74.3 million, up from $64.9 million in 2024, primarily due to the acquisition of LeoStella. Adjusted EBITDA improved to $8.8 million in Q4, up from $7.4 million, marking a second consecutive year of positive adjusted EBITDA.
BlackSky concluded Q4 with total liquidity of over $225 million, which includes $125.6 million in cash and short-term investments. The company also signed a new vendor financing agreement for Gen-3 launches, providing an additional $37.4 million in launch financing.
Looking to 2026, management forecasts revenue between $120 million and $145 million and adjusted EBITDA between $6 million and $18 million. Capital expenditures are expected to range from $50 million to $60 million as the company continues to expand its Gen-3 constellation and advance its satellite and AI technologies.
O’Toole expressed optimism about the U.S. government’s budget approval for 2026, which includes funding for various commercial imagery initiatives. However, he noted that BlackSky is approaching forecasts conservatively due to potential impacts from earlier budget discussions in 2025.
In summary, BlackSky Technology is poised for continued growth in 2026, bolstered by its expanding international customer base, a strong backlog, and a robust liquidity position. The company remains committed to meeting the rising demand for space-based intelligence with its integrated technology stack.
