\nBlackSky Technology Inc. (\u201cBlackSky\u201d or the \u201cCompany\u201d) (NYSE: BKSY) announced results for the third quarter ended September 30, 2026.<\/p>\n
\n\u201cBuilding on strong Gen-3 sales performance, we delivered an exceptional third quarter with record revenue, strong margin growth, and record adjusted EBITDA,\u201d said Brian E. O\u2019Toole, BlackSky CEO. \u201cReal-time intelligence is more mission-critical than ever, and we are winning customers because of our demonstrated ability to deliver assured, actionable intelligence with speed, reliability, and clarity. As we scale our Gen-3 capabilities, we expect to continue our momentum capitalizing on the growing global demand for our space-based intelligence and sovereign solutions.\u201d<\/p>\n
Third Quarter Financial Highlights:<\/span><\/b><\/p>\n Recent Highlights<\/span><\/b><\/p>\n Financial Results<\/span><\/b><\/p>\n Revenues<\/b><\/p>\n \nTotal revenue for the third quarter of 2026 was $42.8 million, compared to $19.6 million in the third quarter of 2025. The year-over-year increase of $23.2 million, or 118%, was primarily driven by accelerating customer demand for Gen-3, which drove record space-based intelligence and AI services revenue of $32.7 million.<\/p>\n Cost of Sales(1)<\/sup><\/b><\/p>\n \nTotal cost of sales as a percentage of revenue improved to 21% for the third quarter of 2026, compared to 35% for the third quarter of 2025. The improvement reflects the operating leverage from the growth of the Company\u2019s high-margin space-based intelligence services.<\/p>\n Operating Expenses<\/b><\/p>\n \nOperating expenses for the third quarter of 2026 were $33.4 million, which included $4.4 million of non-cash stock-based compensation expense and $7.5 million in depreciation and amortization expenses. Operating expenses for the third quarter of 2025 were $29.6 million, which included $3.5 million in non-cash stock-based compensation expense and $7.9 million in depreciation and amortization expenses. Excluding the non-cash stock-based compensation and depreciation and amortization expenses from both years, cash operating expenses(2)<\/sup><\/b> for the third quarter of 2026 were $21.5 million, compared to $18.2 million in the prior year quarter. The year-over-year increase of $3.3 million was primarily due to planned incremental investments in the business.<\/p>\n Net Income<\/b><\/p>\n \nNet income for the third quarter of 2026 was $18.5 million, compared to a net loss of $15.3 million for the third quarter of 2025. The year-over-year improvement of $33.8 million was driven by strong operating results and changes in the gain\/(loss) on derivatives, which are driven by fluctuations in the Company\u2019s equity warrants and other equity instruments that are measured at fair value.<\/p>\n Adjusted EBITDA(2)<\/sup><\/b><\/p>\n \nAdjusted EBITDA for the third quarter of 2026 was a record $12.8 million, a 29.9% margin on $42.8 million in revenue. The year-over-year increase of $17.3 million was primarily driven by strong revenue growth, expanding gross margins, and operating leverage across the business.<\/p>\n Balance Sheet & Capital Expenditures<\/b><\/p>\n \nAs of September 30, 2026, cash and cash equivalents, restricted cash, and short-term investments totaled $231.1 million. Capital expenditures for the third quarter of 2026 were $15.4 million.<\/p>\n\n
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