BlackSky Technology (NYSE:BKSY) Announces Earnings Results, Misses Estimates By $0.16 EPS

BlackSky Technology (NYSE:BKSY) announced its earnings results on Thursday. The company reported ($0.54) EPS for the quarter, missing the consensus estimate of ($0.38) by ($0.16), Briefing.com reports. The firm had revenue of $33.32 million during the quarter, compared to the consensus estimate of $30.72 million. BlackSky Technology had a negative return on equity of 74.25% and a negative net margin of 89.07%.

Here are the key takeaways from BlackSky Technology’s conference call:

• Strong Q2 growth and profitability: Revenue rose 50% year over year to $33.3 million, while adjusted EBITDA reached $4.7 million, or a 14.2% margin, reflecting operating leverage from higher-margin Gen-3 subscription services.
• Gen-3 adoption is accelerating: Space-based intelligence and AI revenue increased 50% sequentially to a record $24.5 million, with subscription services reaching a $100 million annual run rate. Management said the quarter’s revenue provides a solid recurring baseline, with additional customer conversions and satellite capacity expected to support further growth.
• Backlog and international demand expanded: Year-to-date bookings reached up to $200 million, while international subscription revenue grew 150% year over year and now represents more than 80% of funded backlog. Management also cited a significant pipeline of sovereign and Mission Solutions opportunities.
• Balance sheet strengthened: BlackSky ended the quarter with $244.1 million of cash and more than $325 million of total liquidity after raising $150 million through its ATM program, providing flexibility to fund growth while pursuing a capital-light strategy for AROS.
• Execution and outlook remain on track, but Mission Solutions may be lumpy: The company expects to have eight Gen-3 satellites in orbit by year-end and reaffirmed 2026 guidance of $130 million-$150 million in revenue and $12 million-$24 million in adjusted EBITDA. Executives cautioned that larger sovereign Mission Solutions contracts could create quarter-to-quarter variability as they are delivered over multiple years.

BlackSky Technology Stock Performance

NYSE:BKSY traded up $2.55 during trading hours on Thursday, hitting $27.73. 1,654,233 shares of the company traded hands, compared to its average volume of 1,159,474. The stock has a market capitalization of $1.13 billion, a price-to-earnings ratio of -10.87 and a beta of 2.61. BlackSky Technology has a twelve month low of $12.41 and a twelve month high of $52.88. The firm has a 50-day moving average of $28.08 and a 200 day moving average of $29.31. The company has a current ratio of 3.46, a quick ratio of 3.34 and a debt-to-equity ratio of 2.39.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the company. Jefferies Financial Group raised BlackSky Technology to a “hold” rating in a research report on Wednesday, June 10th. Wall Street Zen cut BlackSky Technology from a “hold” rating to a “strong sell” rating in a research report on Saturday, May 16th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of BlackSky Technology in a research note on Friday, July 17th. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $39.33.

Institutional Trading of BlackSky Technology

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Quarry LP acquired a new position in shares of BlackSky Technology during the fourth quarter valued at about $26,000. Strive Financial Group LLC acquired a new stake in BlackSky Technology during the fourth quarter worth about $26,000. Wexford Capital LP acquired a new stake in BlackSky Technology during the third quarter worth about $30,000. Global Retirement Partners LLC bought a new position in BlackSky Technology during the fourth quarter valued at about $28,000. Finally, IFP Advisors Inc increased its stake in BlackSky Technology by 57.9% during the third quarter. IFP Advisors Inc now owns 2,253 shares of the company’s stock valued at $45,000 after acquiring an additional 826 shares during the period. 27.15% of the stock is currently owned by institutional investors and hedge funds.

About BlackSky Technology

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.