Satellogic Inc. Q4 FY2025 earnings call

Emiliano Kargieman mentioned the work begun in 2024 to restructure the cost base and rationalize the organization. They completed U.S. domicile in March 2025, achieved a 25% year-over-year reduction in total operating expenses, and matured the product offering. Rick Dunn walked through financials noting revenue up 38%, operating expenses down 25%, adjusted EBITDA loss improved 48%, and a strong balance sheet. Jeff Kerridge shared insights on the strong sovereign and defense appetite, capacity as a competitive weapon, and pipeline velocity. Emiliano discussed the 2026 road map including Aleph Observer and Merlin constellation

For the full year 2025, total revenue was $17.7 million, up 38% year-over-year from $12.9 million in 2024. Data & Analytics represented 90% of total revenue at $16 million with Space Systems contributing $1.7 million or 10%. Geographically, North America was the largest market at $12.1 million. Total operating expenses for the year were $48.7 million, down 25% from $65.1 million in 2024. Net loss for the full year 2025 was $4.8 million compared to a net loss of $116.3 million in 2024. Q4 2025 revenue was $6.2 million, up 94% from $3.2 million in Q4 2024. Ended the year with $94.4 million in cash and cash equivalents. Noncancelable remaining purchase obligations stood at $65.1 million as of 12/31

No specific 2026 fiscal guide given, but Rick Dunn stated that flat growth relative to 2025 would be disappointing and analysts' estimates are in line or conservative relative to their expectations

Q: Congrats on the call and some just fantastic numbers here. Emiliano, maybe start, you're touching on Merlin. Obviously, it's going to bring some pretty compelling capabilities, global rescan and 1-meter, highly differentiated and pretty rare to see these time lines pull in as I had expected that maybe a bit later than what you're now talking. So fully operational H1 '27. Expand a bit more on that. How many units are we talking? And any other color you can tell us about the capabilities of that? And then correlate that in with my second question, which is you commented at a high level, we're an AI-first platform. That means a lot of different things to a lot of different people. What does that mean to Satellogic?

A: Yes. No. Thanks, Jeff. I mean thanks for the question. Super good. Thanks for covering the company, too. So great question. Look, we haven't announced Merlin before, but the reality is we have been working on this constellation since April 2025 when we announced that $30 million contract for our AI-first constellation. So even though we have been doing this out of the public eye, we have been working on the design and the initial procurement that we needed, putting the supply chain in place. So the satellites are currently in full production in our facility and the first launch is expected for October this year, followed by the full constellation being completely in-orbit in the first half of next year. The first tranche of this constellation is 8 satellites. That will give us the ability to provide the service fully in 2027. And AI-first for us, what it means is a couple of things, I would say. The first one is these satellites have enough compute capacity and power to process every pixel they collect in real time through a multi-headed AI pipeline directly in-orbit. So we can run the same algorithms we currently run on the ground to do object detection, to do identification, to do classification. We will be able to run this on our Merlin platform directly in-orbit and generate using these algorithms generate a couple of things. First, real-time alerts that we will be able to download from the constellation in real time using inter-satellite links. And most interestingly, real-time retasking. So we'll be able, for example, to detect an event at 1-meter of resolution with a Merlin satellite and in real time, retask a satellite from our higher-resolution fleet to go take a deeper look at what's going on. So when we deliver the imagery to our customers and when we deliver the analysis to our customers, we do so with not only the Merlin baseline, but also with a higher resolution confirmation from one of our other satellites in the fleet. Does that make sense?

Q: Congrats on the first call here and the results in the Merlin launch. It looks great. I guess first question would be the notion that there's a lot of countries, nations that want to have their own satellites and capacity. I guess, can you quantify that? Like how many countries do you think are actually kind of pursuing their own satellite constellations? And then do they look for an exclusive provider? Or are there a couple of options or chance for a couple of suppliers per country?

A: Yes. So we see demand growing pretty much everywhere internationally outside of the U.S., I would say, throughout the Middle East, Asia Pacific and Europe for different reasons, we see demand growing in all those places. And it's become clear over the last few years that nobody wants to rely exclusively on commercial constellations and information provided by the U.S. or allied governments for their defense and intelligence need, right? So everybody is trying to build or all of these countries are trying to build, not only operate their own satellites in-orbit and build their own capacity in-orbit, build their own capacity in-orbit, but they also want to build their own capabilities, their own capacity to build new satellites and launch new satellites when needed. We see this as a key trend. This is one that we are particularly well positioned to serve because or not only we have a very unique value proposition in terms of satellite quality, cost and speed to orbit, as I mentioned before, but also because of the fact that our satellites are free of export restrictions that were not -- or technology is not ITAR-controlled. We are able to go to these countries and offer full technology transfer and knowledge transfer programs, including the setup of local assembly and integration facilities to not only -- and localization of supply chains, to not only be able to provide them a few satellites in-orbit today, but also the ability to launch locally more satellites in the future. I think this is a key trend that we're seeing. We're seeing it across the Board. Again, I think Asia, Southeast Asia, Asia Pacific, Middle East, Europe, we're seeing the same trend essentially across the board.