BlackSky Technology (NYSE:BKSY) executives said the company closed 2025 with what they described as a “near record” fourth quarter, citing increasing customer adoption of its Gen-3 satellite imagery and associated AI-enabled analytics as a key driver of growth. On the company’s Q4 2025 earnings call, CEO Brian O’Toole and CFO Henry Dubois highlighted expanding international demand, rising backlog, two consecutive years of positive adjusted EBITDA, and a strengthened liquidity position heading into 2026.
Gen-3 constellation performance drives customer adoption
O’Toole attributed much of the company’s momentum to the deployment and validation of Gen-3 satellites, which he said are delivering “proven on-orbit 35 centimeter imaging performance” that has exceeded customer expectations. BlackSky launched and commissioned three Gen-3 satellites in 2025, and O’Toole emphasized the speed of commissioning, noting that the most recent Gen-3 satellite began delivering very high-resolution imagery within 12 hours of launch and entered commercial operations in three weeks.
Business organization emphasizes three growth vectors
O’Toole said BlackSky is increasing focus and visibility around three elements of the business:
- Space-based intelligence and AI services: The company’s core subscription business that leverages its commercial constellation and Spectra AI platform. O’Toole said the renamed segment better reflects the breadth of AI-enabled solutions the company is bringing to market.
- Mission solutions: Programs that deliver sovereign space-based intelligence solutions, including satellites, ground systems, and integration into customer environments. Management pointed to wins with customers in India and Indonesia, among others, and said demand for sovereign capabilities continues to increase.
- Advanced technology programs: Customer-funded R&D projects to develop and demonstrate next-generation capabilities, including optical inter-satellite cross links, future AROS satellites for large-area mapping, and advanced AI training and edge processing.
When asked about expected revenue mix under the new segment reporting, O’Toole said the blend should be consistent with prior periods, with space-based intelligence and AI services contributing roughly 60% to 70% of revenue, mission solutions around 25% (with potential to grow disproportionately due to larger deal sizes), and advanced technology programs roughly 15%.
Contract bookings, backlog growth, and international demand
Management said the company secured $240 million in contract bookings during 2025, with the majority coming from international multiyear contracts. Backlog grew to $345 million, which management said provides revenue visibility. Dubois added that nearly $75 million of the backlog is expected to be recognized in 2026, and he also pointed to renewals that are not yet included in backlog.
Recent customer activity discussed on the call included early-access Gen-3 pilots that are being converted into longer-term subscriptions. O’Toole also cited a new international customer that began with a small pilot and grew within a couple of months to a “seven-figure quarterly run rate.” The company also discussed adding Gen-3 access to an existing $100 million multiyear subscription contract previously announced, ramping a seven-figure U.S. government Gen-3 contract, and additional work under the NGA LUNO program and the U.S. Space Force Global Data Marketplace.
In mission solutions, O’Toole said BlackSky recently signed an “eight-figure” multiyear contract with a new international customer that includes delivery of a Gen-3 satellite, ground station capabilities, and satellite operation support, along with assured access to BlackSky’s commercial imagery and analytics services. He said the company was able to recognize a “good portion” of that contract’s revenue in Q4 because of immediate deliveries and because BlackSky could pull a satellite from the production line to accelerate the customer’s schedule. He added that BlackSky expects to launch the satellite “later this year or early next year,” and said the company is seeing a trend of customers starting with a small number of satellites and expanding over time.
On geographic demand, O’Toole said mission solution interest is broad-based across Europe, the Middle East, and Asia-Pacific, among other regions. He framed the sovereign market as a “large and expanding” opportunity, stating that fewer than five years ago there were under 12 to 15 countries with sovereign space capability, compared with over 60 today.
Q4 and full-year financial results; stronger liquidity
Dubois reported Q4 2025 revenue of $35.2 million, up 16% year over year. He said results were driven by (1) mission solutions revenue from a new international contract involving the sale of a Gen-3 satellite and related services, (2) milestone achievements on Gen-3 tactical ISR integration work, and (3) increased international subscription usage plus additional orders under NGA’s LUNO program and the Space Force’s Global Data Marketplace.
Full-year 2025 revenue was $106.6 million, which Dubois said reflected growth in mission solutions, the ramp of Gen-3, and expansion of the international customer base, despite U.S. government budget challenges. He said international revenue grew over 50% from the prior year and represented more than half of total revenue.
Cash operating expenses were $17.7 million in Q4, compared with $16.9 million a year earlier. For the full year, cash operating expenses were $74.3 million, up from $64.9 million in 2024, which Dubois attributed primarily to the LeoStella acquisition in 2024.
Adjusted EBITDA was $8.8 million in Q4, up from $7.4 million in the prior-year quarter, driven by higher revenue and cost management, according to Dubois. Full-year adjusted EBITDA was $0.9 million, marking a second consecutive year of positive adjusted EBITDA.
BlackSky ended Q4 with $125.6 million in cash, restricted cash, and short-term investments, more than double the $53.8 million reported a year earlier. Dubois said milestone completions triggered invoicing of prior unbilled receivables, reducing unbilled contract assets to $26.6 million from about $43 million at the end of Q3. Accounts receivable ended at $37.6 million, which the company expects to collect in the near term. BlackSky also signed a new vendor financing agreement for Gen-3 launches in 2026, providing $37.4 million of available launch financing. Management said these items contributed to total liquidity of over $225 million.
2026 guidance and key themes
For 2026, management guided to revenue of $120 million to $145 million and adjusted EBITDA of $6 million to $18 million. Capital expenditures are projected to be $50 million to $60 million, primarily for building out the Gen-3 constellation and advancing next-generation satellite and AI technologies. Dubois said the company historically generates 40% to 45% of revenue in the first half of the year and 55% to 60% in the second half, and expects 2026 to follow a similar pattern.
On U.S. government demand, O’Toole said the company was “happy” Congress approved the 2026 budget, which includes funding for EOCL and other commercial imagery and analytics initiatives at NGA and the Space Force. However, he said BlackSky is taking a conservative approach to EOCL assumptions in its forecast and expects better visibility into appropriation and program-level impacts in Q2. Management also reiterated prior commentary that U.S. government budget changes discussed earlier in 2025 represented about a $2 million per month impact beginning in August, or roughly a $10 million hit for the year.
O’Toole said BlackSky believes it is positioned to meet accelerating demand for space-based intelligence with its integrated “space, ground, and AI technology stack,” and emphasized the company’s growing backlog, expanding international portfolio, and liquidity as it enters 2026.
About BlackSky Technology (NYSE:BKSY)
BlackSky Technology, Inc operates Earth observation and geospatial intelligence services through a constellation of small satellites and an analytics platform. The company collects and processes high-revisit satellite imagery, enabling near-real-time monitoring of global events and locations. Clients across government, defense and commercial sectors leverage BlackSky’s imagery and data to support decision-making in areas such as supply chain monitoring, humanitarian aid, infrastructure management and security operations.
Founded in 2014 as part of Spaceflight Industries, BlackSky has grown its satellite constellation and analytics capabilities to deliver satellite imagery with high revisit rates and rapid tasking.
