BlackSky Technology Q2 Earnings Call: Strong Growth, International Expansion, and Challenges Ahead

BlackSky Technology reported a positive Q2 earnings call, highlighting successful satellite launches, international market expansion, and a strong financial position. However, concerns were raised regarding US government spending uncertainty and a decline in adjusted EBITDA, which could pose potential risks despite the company's growth trajectory. The company provided forward-looking guidance, revising its full-year 2025 revenue guidance to between $105 million and $130 million.

Herndon, Va. – BlackSky Technology Inc. (NYSE: BKSY) reported its second-quarter 2025 results, highlighting significant milestones in satellite launches and international market expansion. The company's Q2 earnings call underscored a strong financial position, despite concerns over US government spending uncertainty and a decline in adjusted EBITDA.

Key Highlights:

1. Successful Satellite Launches: BlackSky successfully launched its second Gen-3 satellite, which began delivering very-high resolution imagery within just 12 hours of launch. The company is on track to launch six Gen-3 satellites this year, with general commercial availability anticipated in the fourth quarter.

2. International Market Expansion: The company signed multiple early access agreements for Gen-3 imagery and analytics services with international customers. This expansion is part of the AROS initiative to broaden the addressable market for multi-spectral broad area monitoring and mapping capabilities.

3. Financial Position: BlackSky reported a total revenue of $22.2 million for the second quarter, driven by imagery and software analytical services revenue of $18.0 million. The company also reported a cash balance of $94.9 million as of June 30, 2025, with pro forma cash inclusive of recent transactions exceeding $170.0 million.

4. Fundraising: BlackSky completed an upsized $185 million convertible note offering, strengthening its balance sheet and increasing liquidity. The offering paid off a senior secured note and commercial bank line.

5. Outlook: Despite near-term volatility driven by the US government budget process and timing related to some international contracts, BlackSky revised its full-year 2025 revenue guidance to between $105 million and $130 million. The company maintained its full-year 2025 guidance for capital expenditures of between $60 million and $70 million.

Concerns and Risks:

- US Government Spending Uncertainty: The company noted potential risks from near-term volatility in US government spending, which could impact its revenue and adjusted EBITDA.
- Decline in Adjusted EBITDA: Adjusted EBITDA for the second quarter of 2025 was a loss of $2.8 million, compared to an adjusted EBITDA of $2.1 million for the second quarter of 2024. The year-over-year decrease was primarily due to overhead expenses related to the recently acquired LeoStella operations and lower professional and engineering revenues.

Investor Relations:

BlackSky will host a conference call and webcast for the investment community at 8:30 a.m. EDT to discuss the second quarter results. To access the live webcast or the archived webcast, visit the Company’s investor relations website at [ir.blacksky.com](http://ir.blacksky.com) and select “News & Events” for the link to the webcast. To access the conference call, dial 1-877-589-7299 or 1-201-689-8778 at least ten minutes prior to the start of the call. The audio replay will be available from approximately 12:30 p.m. EDT on August 7, 2025, through August 21, 2025.

About BlackSky:

BlackSky is a real-time, space-based intelligence company delivering on-demand, high-frequency imagery, analytics, and monitoring services. The company's proprietary low earth orbit satellite constellation and advanced software platform enable customers to see, understand, and anticipate changes for a strategic advantage. BlackSky is headquartered in Herndon, VA, and is publicly traded on the New York Stock Exchange as BKSY.

References:

[1] https://ir.blacksky.com/news-events/press-releases/detail/188/blacksky-reports-second-quarter-2025-results