BlackSky Technology Inc. reported fourth‑quarter 2025 results that included an earnings per share of –$0.19, beating the consensus estimate of –$0.25 by $0.06. Revenue for the quarter was $35.2 million, falling short of the $37.13 million estimate by $1.93 million, yet still representing a 16% year‑over‑year increase to $35.2 million and a 10% sequential rise to $35.2 million from $32.0 million in Q3 2025. Adjusted EBITDA turned positive at $8.8 million, up from $7.4 million in the same quarter a year earlier, while the full‑year net loss widened to $70.3 million from $57.2 million in 2024.
The EPS beat can be attributed to disciplined cost management and a favorable product mix. The company’s Gen‑3 satellite contracts, which entered service during the quarter, generated higher‑margin revenue and helped offset the lower performance of legacy segments. In addition, the company reduced its gain/loss on derivatives, lowering the impact of one‑time items that had previously inflated losses.
Revenue missed expectations because demand in the Mission Solutions segment lagged behind the strong performance of Advanced Technology Programs and Space‑Based Intelligence & AI Services. The quarter’s segment breakdown shows Advanced Technology Programs at $11.2 million, Space‑Based Intelligence & AI Services at $14.5 million, and Mission Solutions at $9.5 million. While the first two segments grew, Mission Solutions fell short of the $10.0 million target, dragging overall revenue below analyst forecasts.
Margin compression was driven by a rise in cost of sales to 27% of revenue, up from 23% a year earlier. The increase is largely due to higher costs in the Mission Solutions business, which has a lower gross‑margin profile than the other two segments. The company’s operating leverage improved, but the higher cost base offset the revenue growth, resulting in a modest margin squeeze.
BlackSky guided for 2026 revenue of $120 million to $145 million and positive adjusted EBITDA, a continuation of the upward trajectory set in the prior guidance. Backlog grew 32% to $345 million, reflecting new Gen‑3 contract awards and expanding international demand. CEO Brian O'Toole said the company’s “strong backlog growth and the conversion of early customer pilots into long‑term subscription contracts worldwide” underpin the optimistic outlook.
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