BlackSky (BKSY) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $20.8 million, up 14% sequentially but down 29.7% year-over-year due to a prior one-time benefit; space-based intelligence and AI services remained flat year-over-year.

• Achieved up to $160 million in new contract wins, including major international and U.S. government customers, with Gen-3 pilots transitioning to long-term subscriptions.

• Raised full-year 2026 guidance due to strong sales, accelerated Gen-3 adoption, and rapid backlog growth.

• Net loss widened to $29.7 million, reflecting lower mission solutions revenue, higher operating expenses, and derivative losses.

• Successfully deployed the fourth Gen-3 satellite, achieving rapid commissioning and commercial operations.

Financial highlights

• Space-based intelligence & AI services revenue was $16.5 million (79.6% of total), up 14% sequentially; mission solutions revenue fell to $2.0 million, and advanced technology programs revenue was $2.2 million.

• Gross margins for subscription revenue are around 80%, supporting improved EBITDA margins.

• Adjusted EBITDA loss for Q1 was $5.1 million.

• Cash and short-term investments totaled $117.5 million at quarter-end; liquidity improved to $196.9 million.

• Operating expenses were $18.8 million, flat year-over-year; depreciation and amortization increased to $9.2 million.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $130–$150 million, representing over 30% growth at the midpoint year-over-year.

• Adjusted EBITDA guidance increased to $12–$24 million.

• Capital expenditures guidance maintained at $50–$60 million.

• Management expects cash and short-term investments to be sufficient for near-term working capital and capex needs.

• Second half of the year projected to be stronger as new contracts ramp.