Satellogic 2025 Q1 Earnings Misses Targets as Net Loss Widens 114.7%

Satellogic (SATL) reported its fiscal 2025 Q1 earnings on May 13th, 2025. The total revenue for the quarter was $3.39 million, showing a slight increase from the previous year's $3.33 million. Despite this, the company's net loss widened significantly to $32.6 million from $15.2 million in Q1 2024. The results fell short of expectations, with the company not providing an update on future guidance. The strategic focus remains on operational improvements and targeting growth opportunities in the Space Systems segment.

Revenue
Satellogic's total revenue for the first quarter of 2025 reached $3.39 million, marking a 1.8% year-over-year increase from $3.33 million in 2024 Q1. The revenue was primarily driven by the Asset Monitoring segment, which contributed $2.59 million. The Constellation as a Service (CaaS) segment generated $412,000, while the Space Systems segment brought in $381,000. This modest revenue growth was attributed to increased demand from Asset Monitoring customers despite a decrease in Space Systems revenue.

Earnings/Net Income
Satellogic's earnings per share reflected a deepened loss of $0.34 in 2025 Q1, compared to a loss of $0.17 in 2024 Q1. The company's net loss expanded dramatically to $32.58 million, representing a 114.7% increase from the previous year's $15.18 million loss. The larger net loss indicates a challenging financial performance for the quarter.

Price Action
The stock price of Satellogic dropped 5.32% during the latest trading day and edged down 2.85% over the most recent full trading week, despite a month-to-date increase of 8.20%.

Post-Earnings Price Action Review
Investing in Satellogic (SATL) shares following the revenue drop on the earnings release date and holding for 30 days only yielded a 4.68% annualized return, underperforming the market by 3.46 percentage points. The average annual return stood at 17.95%, culminating in a final investment value of $2,487.10 from an initial $1,000. While this performance aligns with broader market trends, its lower volatility positions Satellogic as a conservative option for investors seeking steady returns over time.

CEO Commentary
"Satellogic had a great start to the year," said Emiliano Kargieman, CEO of Satellogic. He highlighted key achievements, including a $30 million contract for an AI-first constellation and significant sales to Brazil and Singapore, which strengthen the company's liquidity. Kargieman emphasized that the completion of the domestication positions Satellogic to pursue substantial growth opportunities, showcasing the value of its data insights and technology. He expressed optimism about the company's trajectory as it focuses on growth and profitability in 2025 and beyond, driven by increasing demand for their Earth Observation services.

Guidance
Rick Dunn, Chief Financial Officer, stated, "We expect our revenue for 2025 will largely depend on closing opportunities within our Space Systems line of business." He indicated that this segment is projected to yield considerable cash flow and strong gross margins. The company aims to enhance near-term growth opportunities while advancing on a path to profitability, with expectations of continued operational improvements and revenue increases in the upcoming quarters.

Additional News
In recent developments, Satellogic completed its strategic realignment to become a U.S. company on March 26, 2025. This transition is anticipated to enhance the company's ability to compete for U.S. and allied government contracts, particularly in the defense sector. Furthermore, Satellogic successfully closed a registered direct offering, raising approximately $20 million in gross proceeds on April 16, 2025. This capital infusion aims to bolster liquidity and support the company's growth initiatives. These strategic moves are expected to position Satellogic advantageously for future opportunities in the competitive Earth Observation market.