BlackSky Technology Inc. Q3 FY2025 earnings call

• Awarded more than $60 million in new contracts, primarily with international customers, for Gen-3 services.
• Awarded a $30 million contract to integrate Gen-3 high-cadence tactical ISR services into a strategic international defense customer's secure environment.
• Traction for Gen-3 imagery continues to build with new seven-figure contracts, including for U.S. government delivery.
• AI and analytics solutions gain traction across customer base, including with NGA Luno and major international government programs.
• Gen-3 constellation expands with next satellite at launch site, aiming for baseline commercial constellation operational by next year.
• Cash balance increased over 50% from last year, total liquidity over $200 million.
• International demand for sovereign solutions accelerates, with over 90% of backlog related to international Gen-3 contracts.

Total revenue for the first nine months of 2025 was $71.4 million, consistent with the prior year period. Professional and engineering services revenue for the first 9 months of 2025 grew to $20.8 million, a 9% increase over the same period in the prior year. International revenues now represent about half of total revenues, driven by new contracts and expanded service agreements with international ministries of defense and organizations.

• Maintaining guidance for full-year 2025 revenue, adjusted EBITDA, and capital expenditures.
• Expecting a strong Q4 due to large sales opportunities in the pipeline.
• Anticipating significant high visibility growth in 2026 anchored by strong backlog of international contracts and growing pipeline for imagery, analytics services, and sovereign solutions.

• U.S. government budget uncertainty impacted Q3 revenues, with potential impacts on EOCL program until budget is finalized.
• Actual results may differ materially from forward-looking statements due to risks and uncertainties stated in Form 10-K.

Q: First, I wanted to check on the Gen-3 deployment cadence. Is that still progressing on the same kind of deployment number as you were previously looking for?

A: Yes. The next satellite is at the launch site, expected to be deployed soon. A faulty component was found but fixed, with some delays but continuing on plan.

Q: Understood. And I know you mentioned in the deck that next year will be fully operational. Can you just remind us, what does that mean? Exactly how many satellites does it have to be fully operational?

A: Our goal is to have at least 12 Gen-3 satellites up by the end of next year.

Q: Understood. And then just, if I could sneak one in on the financials, the range for 4Q is quite wide. So, if we want to kind of take that as a jumping-off point, what are sort of the main factors in getting to the low end or the high end? Is the government shutdown hurting that?

A: We expect a step up from contracts in place and others to close shortly. The wide range accounts for timing of deals. Government shutdown hasn't hurt Gen-3 early access for government as a 7-figure contract was recently closed.

Q: This is Daniel Hibshman on for Jeff. Just maybe if you could talk through us a little bit on the early access agreements, just kind of where those are at, how those are progressing, those early access agreements for Gen-3, and then a little bit more about the steps you see need to take place to get those to a more significant revenue line.

A: Early access program is progressing well. Customers have six-figure early access agreements to test Gen-3. Transitioning to longer-term, larger contracts, with significant Gen-3 services in backlog.

Q: Can you just talk about maybe some of the non-government opportunities? I know you announced an expansion of a contract for non-earth imaging. How much of an opportunity are incremental services like that for you, and how should we think about maybe some of the commercial opportunities for the business to find growth outside of the government marketplace?

A: Continuing to see traction on non-Earth imaging, with a renewed 7-figure subscription contract. Commercial growth expected to expand later next year as baseline constellation is deployed.