BKSY · BlackSky Technology Inc.

BlackSky Technology Inc. reported first quarter 2026 results that reflected a shift in revenue mix toward higher-margin space-based intelligence and AI services, though total revenue declined year-over-year due to a $9.0 million milestone recognized in Q1 2025. Revenue of $20.8 million missed the prior year's $29.5 million, but space-based intelligence & AI services revenue grew 14% sequentially to $16.5 million, indicating strong demand for Gen-3 solutions. Cost of sales as a percentage of revenue improved to 35% from 43%, driven by the favorable mix. Operating expenses rose to $32.0 million from $28.9 million, including higher non-cash stock-based compensation and depreciation. Net loss widened to $29.7 million from $12.8 million, primarily due to an $8.2 million loss on derivatives versus a $1.9 million gain in the prior year. Adjusted EBITDA loss increased to $5.1 million from $0.6 million, reflecting the revenue variance. Management highlighted new contract wins valued up to $160 million, including a $99 million sole-source IDIQ from the Air Force Research Lab and a $25 million multi-year subscription with an international Ministry of Defense. The company raised its full-year 2026 revenue guidance to $130-$150 million (over 30% growth at midpoint) and Adjusted EBITDA to $12-$24 million, while maintaining capex guidance of $50-$60 million. The balance sheet remains strong with $117.5 million in cash and investments, and unbilled contract assets decreased to $24.2 million. The raised guidance and contract momentum suggest accelerating revenue growth and a path to profitability, though derivative volatility and the prior-year milestone comparison may continue to affect reported earnings.