BlackSky Technology Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for Q3 2026 reached $42.8 million, a 118% year-over-year increase from $19.6 million in Q3 2025.
• Space-based intelligence & AI services revenue hit a record $32.7 million in Q3 2026, up from $15.8 million in the prior year period.
• Net income for Q3 2026 was $18.5 million, compared to a net loss of $15.3 million in Q3 2025.
• Adjusted EBITDA for Q3 2026 was a record $12.8 million, representing a 29.9% margin on revenue, compared to a loss of $4.5 million in Q3 2025.
• Cost of sales as a percentage of revenue improved to 21% in Q3 2026 from 35% in Q3 2025.
• Operating expenses were $33.4 million in Q3 2026, compared to $29.6 million in Q3 2025; cash operating expenses were $21.5 million in Q3 2026 versus $18.2 million in the prior year.
• Cash and cash equivalents, restricted cash, and short-term investments totaled $231.1 million as of September 30, 2026.
• Capital expenditures for Q3 2026 were $15.4 million.
• Total liabilities were $290.5 million as of September 30, 2026, compared to $291.4 million as of December 31, 2025.
• Long-term debt net of current portion was $204.5 million as of September 30, 2026, compared to $193.2 million as of December 31, 2025.

Guidance and Future Outlook:

• The Company raised its full-year 2026 revenue guidance to a range of $140 million to $150 million.
• The Company raised its full-year 2026 Adjusted EBITDA guidance to a range of $18 million to $24 million.
• The Company is maintaining its full-year 2026 capital expenditures guidance between $50 million and $60 million.
• Management expects to continue momentum capitalizing on growing global demand for space-based intelligence and sovereign solutions as Gen-3 capabilities scale.

Business Segments and Product Lines:

• Gen-3 sales performance drove the record quarterly revenue and strong margin growth.
• A fifth Gen-3 satellite was successfully deployed, achieving first light and revenue-generating operations within 24 hours, expanding constellation capacity.
• The Company secured an exclusive provider agreement for very-high resolution optical satellites under a $1 billion investment consortium including France and the UAE for an initial constellation of 50 satellites.
• A U.S. government customer completed a two-month, seven-figure assured Gen-3 pilot.
• An international defense customer expanded from a small Gen-2 pilot into a seven-figure Gen-3 Assured subscription contract in less than six months.
• A seven-figure renewal contract was secured with HEO following a successful Gen-3 pilot to expand non-Earth imaging space domain awareness services.
• The Company commenced a pilot with SkyFi's satellite intelligence platform to power automated facility monitoring insights for Robinhood retail investors.

Market and Competitive Landscape:

• The Company is positioned as the exclusive provider for a major European and international satellite constellation project valued at $1 billion.
• Demand for real-time intelligence is described as "mission-critical," with the Company winning customers based on speed, reliability, and clarity of assured, actionable intelligence.
• The Company serves demanding U.S. and international government agencies, commercial businesses, and organizations globally.

Risks and Challenges:

• Forward-looking statements highlight risks including long and unpredictable sales cycles and customer demand fluctuations.
• U.S. government budget uncertainties may impact the ability to fulfill contracts with government customers.
• Challenges include estimating resources for fixed-price contracts and managing operational and liquidity needs.
• GAAP financial results may be significantly impacted by uncertain or uncontrollable items such as stock-based compensation, changes in the fair value of warrant liabilities, and depreciation and amortization.

Management Commentary and Tone:

• CEO Brian E. O'Toole described the quarter as "exceptional," citing record revenue, strong margin growth, and record adjusted EBITDA.
• Management expressed confidence in scaling Gen-3 capabilities to capitalize on global demand.
• The tone emphasizes the strategic advantage of the Company's real-time, space-based intelligence system and its ability to deliver "decisive strategic advantage at the tactical edge."

Other Key Points:

• The Company raised its full-year guidance for revenue and Adjusted EBITDA for the second time in 2026.
• The Company will host an investment community conference call and webcast at 8:30 a.m. EST on November 5, 2026.
• The Company has not reconciled its non-GAAP financial outlook to GAAP measures due to the uncertainty of reconciling items like stock-based compensation and warrant liability fluctuations.
• The Company's stock is publicly traded on the New York Stock Exchange under the ticker symbol BKSY.