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

BlackSky Technology (NYSE:BKSY) posted its quarterly earnings results on Thursday. The company reported ($0.54) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.38) by ($0.16), Briefing.com reports. The business had revenue of $33.32 million for the quarter, compared to analyst estimates 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 Price Performance

NYSE:BKSY traded up $2.55 on Thursday, reaching $27.73. The stock had a trading volume of 1,654,233 shares, compared to its average volume of 1,159,474. The company has a quick ratio of 3.34, a current ratio of 3.46 and a debt-to-equity ratio of 2.39. The company has a market capitalization of $1.13 billion, a P/E ratio of -10.87 and a beta of 2.61. BlackSky Technology has a 1-year low of $12.41 and a 1-year high of $52.88. The stock has a fifty day moving average price of $28.08 and a 200-day moving average price of $29.31.

Analyst Upgrades and Downgrades

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

Institutional Investors Weigh In On BlackSky Technology

A number of large investors have recently bought and sold shares of BKSY. Strive Financial Group LLC acquired a new position in BlackSky Technology in the fourth quarter worth $26,000. XTX Topco Ltd bought a new position in shares of BlackSky Technology in the fourth quarter valued at about $527,000. Tudor Investment Corp ET AL lifted its position in BlackSky Technology by 56.2% during the 4th quarter. Tudor Investment Corp ET AL now owns 109,744 shares of the company’s stock worth $2,058,000 after buying an additional 39,479 shares in the last quarter. Balyasny Asset Management L.P. bought a new stake in BlackSky Technology during the 4th quarter worth about $231,000. Finally, Schonfeld Strategic Advisors LLC acquired a new stake in BlackSky Technology in the 4th quarter valued at about $238,000. 27.15% of the stock is currently owned by institutional investors.

BlackSky Technology Company Profile

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.