BlackSky Technology Inc. Q4 FY2025 earnings call

• Brian O'Toole noted strong Q4 2025 performance driven by Gen 3 satellites' successful deployment and demonstration, with 35 centimeter imaging exceeding customer expectations. • Secured $240 million in contract bookings in 2025, with majority international multi-year contracts, leading to a backlog of $345 million. • Q4 2025 revenue was $35 million, up 16% YOY, annual revenues $107 million. • Achieved second consecutive year of positive adjusted EBITDA. • Strengthened balance sheet to over $225 million liquidity. • Aligned business around three growth vectors: space-based intelligence and AI services, sovereign mission solutions, advanced technology programs. • Recent highlights in each vector: closing new customers for Gen 3 pilot programs, securing eight-figure sovereign deals, advancing space and AI capabilities through R&D programs.

In 2025, total revenues were $106.6 million. Q4 2025 revenue was $35.2 million, up 16% year-over-year. Revenue from international customers grew over 50% from the prior year and now represents more than half of total revenues. Adjusted EBITDA for Q4 2025 was $8.8 million, and full-year adjusted EBITDA was $900,000. Cash operating expenses for Q4 2025 were $17.7 million, and full-year cash operating expenses were $74.3 million. Gen 3 satellites drove growth, with $240 million in contract bookings in 2025 leading to a backlog of $345 million.

• Expect full year 2026 revenue between $120 million and $145 million, midpoint 24% growth over 2025. • Full year 2026 adjusted EBITDA expected between $6 million and $18 million. • Capital expenditures for 2026 projected between $50 and $60 million, focused on building Gen 3 constellation and advancing next-gen satellite and AI technologies. • Historically, second half of year has stronger revenue performance, anticipated to continue in 2026.

Q: About the new eight-figure sovereign deal, detail customer, revenue recognition pacing, and pipeline.

A: It's an initial contract for Gen 3 satellite, ground capability, software, multi-year support services bundled with commercial contract. Recognized good portion in Q4. Seeing strong pipeline across regions with many countries in early phases of building sovereign space capability.

Q: On the guide, low end hit, new bookings vs backlog.

A: Strong visibility, backlog ~$345 million with nearly $75 million coming in 2026, including renewals, feel comfortable hitting low end.

Q: Gen 3 timeline, number of Gen 3s by end 2026.

A: Next satellite at launch site, goal to have 8 - 9 Gen 3s on orbit by end of 2026. First few satellites had testing issues typical, production operations ramping.

Q: Inflection point for scale with Gen 3 satellites.

A: View customer adoption rate and unlocking performance, not just number of satellites, scaling capacity commensurate with service delivery needs.

Q: U.S. spend, expectations for 2026.

A: Congress approved 26th budget with funding for EOCL and other initiatives, but expect time into Q2 for better visibility on funding appropriation to specific programs.

Q: New eight-figure contract sales cycle, pricing of Gen 3 capacity.

A: Sales cycles 12 - 18 months, this was faster end. Pricing of Gen 3 capacity in line with expectations, improved 35 centimeter capability with compelling economics.

Q: Revenue breakdown by segments, accounting for satellite sales.

A: Space-based intelligence and AI services expected to contribute 60 - 70% of revenues, mission solutions ~25%, technology development programs ~15%. Mission solutions satellite sales have customization, revenue recognition via percent complete.

Q: NRO satellites, complementarity vs competition to Gen 3.

A: U.S. government has sovereign capability, Gen 3 augments them, not competes, serves specific missions allocated to commercial industry.

Q: International demand granularity, U.S. revenue left on table.

A: International demand across major regions. U.S. revenue impact from budget changes in August was ~$2 million per month, ~$10 million hit for the year.

Q: Eros rollout and revenue opportunity.

A: Eros is TAM expansion, designed for large area mapping and change monitoring, to work cooperatively with Gen 3 satellites for high value service.

Q: Cash operating expenses cost management, OPEX and operating leverage with Gen 3 scaling.

A: Built platform with operating leverage, disciplined cost management, investments in sales, marketing, R&D, EBITDA margin improving with incremental capacity sales.

Q: Free cash flow 2026, working capital needs, CapEx mix.

A: Guiding adjusted EBITDA as surrogate for operating cash flow, expect to hit target ranges, but no breakdown of CapEx between Gen 3 and AI technologies in guidance.

Q: EOCL funding, revenue from EOCL in guidance.

A: EOCL funding is classified, taken conservative approach in 2026 forecast, will see where it lands by later in Q2.

Q: Imagery feeding into AI capabilities growth.

A: Government budget issues impacted growth last year, now offset by international demand for Gen 3 and improved AI capability from Gen 3, with good visibility on growth going forward.

Q: Cash management, AR burn, sales cycle for new sovereign nations.

A: Accounts receivable balance ~$37.5 million, expect to bring it down. Sales cycles for new sovereign nations vary, general range 12 - 18 months but some faster, some longer