Satellogic — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue reached a record $16.0 million, a 342% year-over-year increase from $3.6 million in the prior-year period.
• Revenue for the first nine months of 2026 totaled $38.1 million, a 232% increase from $11.5 million in the same period last year, exceeding full-year 2025 revenue of $17.7 million by 115%.
• Data & Analytics revenue was $6.6 million in Q3 2026 (up from $3.2 million YoY) and $18.3 million for the first nine months (up from $10.1 million YoY).
• Space Systems revenue was $9.5 million in Q3 2026 (up from $0.5 million YoY) and $19.8 million for the first nine months (up from $1.3 million YoY).
• Operating loss narrowed 72% year-over-year to $2.3 million in Q3 2026 from $8.1 million, and narrowed to $8.4 million for the first nine months from $23.9 million.
• Adjusted EBITDA was positive $1.2 million in Q3 2026, marking the second consecutive quarter of positive Adjusted EBITDA, compared to a loss of $4.9 million in the prior-year period.
• Adjusted EBITDA for the first nine months of 2026 was a loss of $0.2 million, an improvement from a loss of $15.0 million in the prior-year period.
• GAAP net income for Q3 2026 was $28.3 million, including a $30.0 million non-cash gain from changes in the fair value of financial instruments; GAAP net loss for the first nine months was $110.0 million, including a $102.7 million non-cash fair value charge.
• Cash and cash equivalents totaled $106.5 million as of September 30, 2026, compared to $94.4 million at year-end 2025.
• Total remaining performance obligations were $66.9 million at September 30, 2026, down from $80.7 million at June 30, 2026.
• Net cash used in operating activities was $10.4 million in Q3 2026; non-GAAP Adjusted Net Cash Used in Operating Activities was $5.5 million.
• Capital expenditures were $6.2 million in Q3 2026 and $17.4 million for the first nine months.
• Secured Convertible Note principal remained unchanged at $18.0 million.

Guidance and Future Outlook:

• Additional Merlin satellite launches are planned for the first half of 2027.
• Operational service and initial revenue from Merlin-based services are expected to begin in the second half of 2027.
• The Merlin constellation is designed to remap the planet daily, detect changes on board, and direct high-resolution satellites to areas requiring closer observation once fully operational.
• On-orbit activities and tests for the Slingshot III program with Innovative Defense Technologies are planned for 2027 and 2028.
• The company is balancing growth investments with disciplined spending as it works toward positive free cash flow.

Business Segments and Product Lines:

• Completed the in-orbit delivery of the second NewSat Mark V satellite under an $18 million agreement with Portugal's CEiiA.
• Launched Merlin.01 on October 1, 2026, aboard SpaceX's Transporter-18 mission; the satellite is now operating with payload commissioning underway.
• Launched two NewSat Mark VI satellites equipped with inter-satellite links and one NewSat Mark V for the sovereign Space Systems program.
• NewSat Mark VI satellites feature inter-satellite links allowing direct in-orbit communication and coordinated system operation to shorten detection-to-follow-up times.
• Aleph Observer, launched in February 2026, supports recurring monitoring of hundreds of sites and serves as a foundation for broader coverage as Merlin enters service.
• Signed a three-year Non-Earth Imaging agreement with HEO extending a six-year relationship, including a seven-figure minimum annual commitment through 2029.
• Announced an agreement for SynMax's Theia platform to serve as the channel for Merlin-derived maritime intelligence.
• Supported HEO's rendezvous and proximity operations campaign, demonstrating space domain awareness capabilities using existing hardware.

Market and Competitive Landscape:

• Over the past 12 months, announced four in-orbit satellite agreements covering seven satellites, including the sale of NewSat-34 to HEO and a $12 million satellite transfer to a sovereign defense customer.
• After quarter-end, signed a new sovereign satellite agreement to sell three in-orbit satellites for a total contract value of approximately $37 million.
• The announced value of sovereign satellite agreements over the past year now totals approximately $67 million.
• Expanded work with defense and intelligence partners including Innovative Defense Technologies (IDT) and SynMax.
• The Space Systems program provides allied governments a pathway from commercial access to dedicated, sovereign-controlled capability, building on proof points in Portugal, India, and Australia.

Risks and Challenges:

• Forward-looking statements include risks related to the ability to generate revenue, convert pipeline contracts into revenue, and market acceptance of PGI services.
• Risks include dependence on third parties for launch (SpaceX), manufacturing, ground station infrastructure, and cloud computing.
• Potential risks involve production and launch delays, launch failures, satellite operational failures, and impairment of satellites.
• The business faces risks related to the secured convertible notes, changes in tax laws, trade policy, export controls, and geopolitical disruptions.
• Sales cycles are described as considerable in time and expense, with unpredictability in contract conversion.

Management Commentary and Tone:

• CEO Emiliano Kargieman described the quarter as "excellent," citing record revenue and the second consecutive quarter of positive Adjusted EBITDA.
• Management highlighted progress in scaling the business and converting commercial activity into revenue.
• CFO Dustin Greer noted that strong revenue growth is translating into substantial year-over-year improvement in operating performance.
• Management emphasized the shift from episodic imagery to Persistent Global Intelligence (PGI) and recurring monitoring programs.
• The tone reflects confidence in the execution of the Merlin program and the ability to deliver sovereign capabilities on accelerated timelines.

Other Key Points:

• Appointed Vice Admiral Frank D. "Trey" Whitworth (Ret.) as President and Jamil Kawar as Senior Vice President, Space Systems.
• Dustin Greer serves as Interim CFO while the search for a permanent CFO continues.
• The $37 million sovereign satellite agreement signed after quarter-end is excluded from the September 30 remaining performance obligations balance.
• Non-GAAP Free Cash Flow for Q3 2026 was a loss of $11.7 million, and for the first nine months was a loss of $23.1 million.
• The company updated its EBITDA methodology effective January 1, 2026, to exclude interest income.
• GAAP net income for Q3 2026 included a $30.0 million non-cash gain from fair value changes of financial instruments, which management stated is not indicative of underlying operating performance.