BlackSky Technology 2025 Q3 Earnings Misses Targets with 21.8% Wider Net Loss

BlackSky Technology reported fiscal 2025 Q3 earnings on Nov 7, 2025, with total revenue declining 13% to $19.62 million and a net loss widening to $-15.34 million. The results fell short of analyst expectations, highlighting ongoing financial challenges.

BlackSky’s Q3 results missed both revenue and EPS estimates, with the company reporting a loss of $-0.44 per share, a 33.3% improvement from the prior year but still unprofitable. Despite securing $60 million in new contracts, the firm maintained its full-year 2025 guidance for revenue and adjusted EBITDA, citing strong international demand and a growing backlog.

Revenue

Total revenue for Q3 2025 fell to $19.62 million, a 13% decline from $22.55 million in Q3 2024. Imagery & Software Analytical Services revenue dropped to $15.8 million, reflecting reduced U.S. government tasking and budget uncertainties. Professional & Engineering Services revenue further declined to $3.8 million, down from $5.2 million in 2Q24, due to project timing and milestone-based recognition.

Earnings/Net Income

The company narrowed its per-share loss to $-0.44, a 33.3% improvement from $-0.66 in Q3 2024. However, the net loss widened to $-15.34 million, a 21.8% increase from $-12.59 million a year ago. The EPS remains a significant concern despite the per-share improvement, as the net loss expansion underscores persistent operational inefficiencies.

Post-Earnings Price Action Review

BlackSky’s stock experienced volatile trading post-earnings, surging 8.62% in a single day but plummeting 15.46% over the following week and 44.84% month-to-date. The mixed price action reflects investor skepticism despite the company’s new contract wins and cash reserves. The earnings report failed to alleviate concerns about recurring losses and revenue volatility, contributing to the sharp selloff.

CEO Commentary

CEO Brian O’Toole emphasized progress in Gen-3 satellite deployment and international contract growth, stating, “Customers globally recognize Gen-3’s superior performance.” The company reported $60 million in new contract awards and a $322.7 million backlog, with 91% from international clients. CFO Henry Dubois highlighted the $147.6 million cash balance, positioning the firm for “free cash flow operations.” Strategic priorities include scaling Gen-3 capabilities and leveraging AI-driven analytics to secure long-term revenue.

Guidance

BlackSky reaffirmed its full-year 2025 revenue and adjusted EBITDA guidance, projecting strong Q4 performance and 2026 growth. The company expects to deploy at least 12 Gen-3 satellites by 2026, enhancing its market position. However, uncertainties around U.S. government budgets and EOCL contract adjustments remain risks.

Additional News

BlackSky secured a $30 million multi-year Gen-3 ISR contract with an international defense client, marking a significant milestone in its sovereign solutions strategy. The company also announced a $60 million pipeline of new contracts, including a seven-figure U.S. government agreement for Gen-3 imagery. Financially, BlackSky’s cash balance grew to $147.6 million, supported by a July convertible note offering. These developments underscore the firm’s focus on expanding international partnerships and advancing its satellite constellation.