BlackSky Reports Second Quarter 2025 Results
Second Gen-3 Satellite Launched and Delivering Very High Resolution Imagery Within 12 Hours
New and Existing Customers Commence Early Access to Gen-3 Services
Company Raises
“We successfully launched and commissioned our second Gen-3 satellite, which is performing exceptionally well, and combined with our first Gen-3 satellite, is now providing very-high resolution imagery and AI-driven analytics to a number of customers through multiple early access agreements,” said Brian E. O’Toole,
Second Quarter Financial Highlights:
-
Imagery & software analytical services revenue grew to
$18.0 million - Imagery & software analytical service cost of sales(1), as a percent of revenue, improved to 19%
-
Backlog of
$356 million , with approximately 85% from international contracts -
Cash balance increases to
$94.9 million as ofJune 30, 2025 ; pro forma cash inclusive of recent transactions is over$170.0 million
Recent Highlights
-
Awarded a facility monitoring order valued at up to
$24 million from the NGA Luno A program - Won a multimillion dollar contract with a new international customer that includes immediate Gen-3 and Gen-2 subscription services and ground segment modernization services
- Announced new AROS initiative to expand addressable market for multi-spectral broad area monitoring and mapping capabilities
- Signed multiple early access agreements for Gen-3 imagery and analytic services with international customers
- Successfully launched second Gen-3 satellite, which began delivering very-high resolution imagery within just 12 hours after launch
- Third Gen-3 satellite in final testing phase and anticipated to ship in the coming weeks
-
Completed an upsized
$185 million convertible note offering in July, paying off a senior secured note and commercial bank line and strengthening BlackSky’s balance sheet with additional liquidity
|
(1) Imagery and software analytical service cost of sales excludes depreciation and amortization expense. |
Financial Results
Revenues
Total revenue for the second quarter of 2025 was
Cost of Sales(2)
Total cost of sales as a percentage of revenue was 28% for the second quarter of 2025, consistent with the second quarter of 2024.
Operating Expenses
Operating expenses for the second quarter of 2025 were
Net Loss
Net loss for the second quarter of 2025 was
Adjusted EBITDA(3)
Adjusted EBITDA for the second quarter of 2025 was a loss of
|
(2) Cost of sales is defined as imagery and software analytical services costs and professional and engineering services cost, less depreciation and amortization expense. |
|
(3) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below and reconciliation table at the end of this press release. |
Balance Sheet & Capital Expenditures
As of
Subsequent to the quarter, the Company completed an upsized
2025 Outlook
As disclosed in an 8-K filing on
Investment Community Conference Call
About
With
Non-GAAP Financial Measures
Adjusted EBITDA is defined as net income or loss attributable to
Adjusted EBITDA and cash operating expenses are non-GAAP financial performance measures. These measures should not be considered in isolation or as an alternative to measures determined in accordance with GAAP. Please refer to the schedule herein and our filings with the
Forward-Looking Statements
Certain statements and other information included in this press release constitute forward-looking statements under applicable securities laws. Words such as "may", "will", "could", "should", "would", "plan", "potential", "intend", "anticipate", "believe", "estimate", "future", "opportunity", "will likely result", or "expect" and other words, terms, and phrases of similar meaning are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. All statements, other than statements of historical fact, contained in this press release, including statements as to future performance, our guidance outlook for the year and expected capital expenditures, our ability to sustain revenue growth, expectations regarding the receipt of cash from customers over the next 12 months, expectations regarding global demand for our products and services, our anticipated liquidity and cash flows, our anticipated Gen-3 satellite launch timing, and our expectations related to future profitability on an adjusted basis, are forward-looking statements.
Forward-looking statements are subject to various risks and uncertainties, which could cause actual results to differ materially from the anticipated results or expectations expressed in this press release. As a result, although
The forward-looking statements contained in this press release are expressly qualified in their entirety by the foregoing cautionary statements. All such forward-looking statements are based upon data available as of the date of this press release and speak only as of such date.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (in thousands, except per share amounts) |
|||||||||||||||
|
|
|||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Revenue |
|
|
|
|
|
|
|
||||||||
|
Imagery & software analytical services |
$ |
17,982 |
|
|
$ |
17,469 |
|
|
$ |
34,811 |
|
|
$ |
35,302 |
|
|
Professional & engineering services |
|
4,217 |
|
|
|
7,469 |
|
|
|
16,932 |
|
|
|
13,872 |
|
|
Total revenue |
|
22,199 |
|
|
|
24,938 |
|
|
|
51,743 |
|
|
|
49,174 |
|
|
Costs and expenses |
|
|
|
|
|
|
|
||||||||
|
Imagery & software analytical service costs, excluding depreciation and amortization |
|
3,460 |
|
|
|
3,432 |
|
|
|
7,278 |
|
|
|
6,877 |
|
|
Professional & engineering service costs, excluding depreciation and amortization |
|
2,787 |
|
|
|
3,450 |
|
|
|
11,569 |
|
|
|
7,038 |
|
|
Selling, general and administrative |
|
22,667 |
|
|
|
18,214 |
|
|
|
44,109 |
|
|
|
37,030 |
|
|
Research and development |
|
17 |
|
|
|
286 |
|
|
|
262 |
|
|
|
742 |
|
|
Depreciation and amortization |
|
7,208 |
|
|
|
11,277 |
|
|
|
14,444 |
|
|
|
22,461 |
|
|
Total costs and expenses |
|
36,139 |
|
|
|
36,659 |
|
|
|
77,662 |
|
|
|
74,148 |
|
|
Operating loss |
|
(13,940 |
) |
|
|
(11,721 |
) |
|
|
(25,919 |
) |
|
|
(24,974 |
) |
|
(Loss) gain on derivatives |
|
(24,435 |
) |
|
|
5,273 |
|
|
|
(22,534 |
) |
|
|
5,019 |
|
|
Interest income |
|
677 |
|
|
|
330 |
|
|
|
1,250 |
|
|
|
730 |
|
|
Interest expense |
|
(3,509 |
) |
|
|
(3,029 |
) |
|
|
(6,852 |
) |
|
|
(5,663 |
) |
|
Other income, net |
|
3 |
|
|
|
2 |
|
|
|
68 |
|
|
|
3 |
|
|
Loss before income taxes |
|
(41,204 |
) |
|
|
(9,145 |
) |
|
|
(53,987 |
) |
|
|
(24,885 |
) |
|
Income tax expense |
|
(35 |
) |
|
|
(252 |
) |
|
|
(65 |
) |
|
|
(322 |
) |
|
Net loss |
|
(41,239 |
) |
|
|
(9,397 |
) |
|
|
(54,052 |
) |
|
|
(25,207 |
) |
|
Other comprehensive income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total comprehensive loss |
$ |
(41,239 |
) |
|
$ |
(9,397 |
) |
|
$ |
(54,052 |
) |
|
$ |
(25,207 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Basic and diluted loss per share of common stock: |
|
|
|
|
|
|
|
||||||||
|
Net loss per share of common stock |
$ |
(1.27 |
) |
|
$ |
(0.52 |
) |
|
$ |
(1.71 |
) |
|
$ |
(1.40 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average common shares outstanding - basic and diluted |
|
32,473 |
|
|
|
18,148 |
|
|
|
31,648 |
|
|
|
18,027 |
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except par value) |
|||||||
|
|
|||||||
|
|
|
|
|
||||
|
Assets |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
22,555 |
|
|
$ |
13,056 |
|
|
Restricted cash |
|
1,153 |
|
|
|
1,322 |
|
|
Short-term investments |
|
71,231 |
|
|
|
39,406 |
|
|
Accounts receivable, net of allowance of |
|
6,897 |
|
|
|
14,701 |
|
|
Contract assets |
|
33,208 |
|
|
|
27,852 |
|
|
Inventories |
|
— |
|
|
|
6,043 |
|
|
Prepaid expenses and other current assets |
|
3,752 |
|
|
|
4,356 |
|
|
Total current assets |
|
138,796 |
|
|
|
106,736 |
|
|
Property and equipment - net |
|
76,776 |
|
|
|
45,613 |
|
|
Operating lease right of use assets - net |
|
3,723 |
|
|
|
4,029 |
|
|
|
|
10,279 |
|
|
|
10,260 |
|
|
Intangible assets - net |
|
5,059 |
|
|
|
5,446 |
|
|
Satellite work in process |
|
65,607 |
|
|
|
80,601 |
|
|
Other assets |
|
10,558 |
|
|
|
1,461 |
|
|
Total assets |
$ |
310,798 |
|
|
$ |
254,146 |
|
|
Liabilities and stockholders’ equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable and accrued liabilities |
$ |
12,265 |
|
|
$ |
20,419 |
|
|
Contract liabilities - current |
|
16,616 |
|
|
|
2,183 |
|
|
Debt - current portion |
|
5,198 |
|
|
|
1,927 |
|
|
Other current liabilities |
|
3,321 |
|
|
|
1,493 |
|
|
Total current liabilities |
|
37,400 |
|
|
|
26,022 |
|
|
Operating lease liabilities |
|
7,796 |
|
|
|
8,048 |
|
|
Derivative liabilities |
|
40,498 |
|
|
|
17,964 |
|
|
Deferred revenue - long-term |
|
20,000 |
|
|
|
— |
|
|
Long-term debt - net of current portion |
|
117,271 |
|
|
|
105,736 |
|
|
Other liabilities |
|
1,273 |
|
|
|
2,387 |
|
|
Total liabilities |
|
224,238 |
|
|
|
160,157 |
|
|
Stockholders’ equity: |
|
|
|
||||
|
Class A common stock, |
|
3 |
|
|
|
3 |
|
|
Additional paid-in capital |
|
796,797 |
|
|
|
750,174 |
|
|
Accumulated deficit |
|
(710,240 |
) |
|
|
(656,188 |
) |
|
Total stockholders’ equity |
|
86,560 |
|
|
|
93,989 |
|
|
Total liabilities and stockholders’ equity |
$ |
310,798 |
|
|
$ |
254,146 |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) |
|||||||
|
|
|||||||
|
|
Six Months Ended |
||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
Cash flows from operating activities: |
|
|
|
||||
|
Net loss |
$ |
(54,052 |
) |
|
$ |
(25,207 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
|
Depreciation and amortization expense |
|
14,444 |
|
|
|
22,461 |
|
|
Operating lease right of use assets amortization |
|
306 |
|
|
|
374 |
|
|
Bad debt expense |
|
84 |
|
|
|
108 |
|
|
Stock-based compensation expense |
|
6,351 |
|
|
|
5,725 |
|
|
Amortization of debt issuance costs and non-cash interest expense |
|
4,017 |
|
|
|
4,382 |
|
|
Capitalized interest |
|
(162 |
) |
|
|
— |
|
|
Loss (gain) on derivatives |
|
22,534 |
|
|
|
(5,019 |
) |
|
Non-cash interest income |
|
(872 |
) |
|
|
(495 |
) |
|
Loss on disposal of assets |
|
83 |
|
|
|
46 |
|
|
Changes in operating assets and liabilities: |
|
|
|
||||
|
Accounts receivable |
|
7,720 |
|
|
|
(1,256 |
) |
|
Contract assets - current and long-term |
|
(14,324 |
) |
|
|
(6,693 |
) |
|
Inventories |
|
5,997 |
|
|
|
— |
|
|
Prepaid expenses and other current assets |
|
605 |
|
|
|
(94 |
) |
|
Other assets |
|
(40 |
) |
|
|
403 |
|
|
Accounts payable and accrued liabilities |
|
(8,065 |
) |
|
|
(1,961 |
) |
|
Other current liabilities |
|
1,168 |
|
|
|
(309 |
) |
|
Contract liabilities - current and long-term |
|
34,183 |
|
|
|
1,958 |
|
|
Other liabilities |
|
(12 |
) |
|
|
(25 |
) |
|
Net cash provided by (used in) operating activities |
|
19,965 |
|
|
|
(5,602 |
) |
|
Cash flows from investing activities: |
|
|
|
||||
|
Purchase of property and equipment |
|
(8,096 |
) |
|
|
(6,576 |
) |
|
Satellite work in process |
|
(10,772 |
) |
|
|
(20,984 |
) |
|
Purchases of short-term investments |
|
(56,953 |
) |
|
|
(13,488 |
) |
|
Proceeds from maturities of short-term investments |
|
26,000 |
|
|
|
18,000 |
|
|
Net cash used in investing activities |
|
(49,821 |
) |
|
|
(23,048 |
) |
|
Cash flows from financing activities: |
|
|
|
||||
|
Proceeds from equity issuances, net of equity issuance costs |
|
40,861 |
|
|
|
2,947 |
|
|
Proceeds from issuance of debt |
|
— |
|
|
|
20,000 |
|
|
Proceeds from options exercised and ESPP shares purchased |
|
180 |
|
|
|
157 |
|
|
Debt payments |
|
(563 |
) |
|
|
— |
|
|
Withholding tax payments on vesting of restricted stock units |
|
(1,086 |
) |
|
|
(524 |
) |
|
Payments for debt issuance costs |
|
(175 |
) |
|
|
(632 |
) |
|
Payments for deferred financing costs |
|
— |
|
|
|
— |
|
|
Payments for deferred offering costs |
|
(31 |
) |
|
|
(83 |
) |
|
Net cash provided by financing activities |
|
39,186 |
|
|
|
21,865 |
|
|
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
9,330 |
|
|
|
(6,785 |
) |
|
Cash, cash equivalents, and restricted cash – beginning of year |
|
14,378 |
|
|
|
33,434 |
|
|
Cash, cash equivalents, and restricted cash – end of period |
$ |
23,708 |
|
|
$ |
26,649 |
|
|
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (unaudited) (in thousands) |
|||||||||||||||
|
|
|||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Net loss |
$ |
(41,239 |
) |
|
$ |
(9,397 |
) |
|
$ |
(54,052 |
) |
|
$ |
(25,207 |
) |
|
Interest income |
|
(677 |
) |
|
|
(330 |
) |
|
|
(1,250 |
) |
|
|
(730 |
) |
|
Interest expense |
|
3,509 |
|
|
|
3,029 |
|
|
|
6,852 |
|
|
|
5,663 |
|
|
Income tax expense |
|
35 |
|
|
|
252 |
|
|
|
65 |
|
|
|
322 |
|
|
Depreciation and amortization |
|
7,208 |
|
|
|
11,277 |
|
|
|
14,444 |
|
|
|
22,461 |
|
|
Stock-based compensation expense |
|
3,454 |
|
|
|
2,362 |
|
|
|
6,351 |
|
|
|
5,725 |
|
|
Loss (gain) on derivatives |
|
24,435 |
|
|
|
(5,273 |
) |
|
|
22,534 |
|
|
|
(5,019 |
) |
|
Non-recurring transaction costs |
|
375 |
|
|
|
— |
|
|
|
1,031 |
|
|
|
— |
|
|
Severance |
|
6 |
|
|
|
60 |
|
|
|
332 |
|
|
|
141 |
|
|
Litigation, settlements, and related costs |
|
77 |
|
|
|
165 |
|
|
|
215 |
|
|
|
165 |
|
|
Impairment and asset disposals |
|
— |
|
|
|
— |
|
|
|
44 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
(2,817 |
) |
|
$ |
2,145 |
|
|
$ |
(3,434 |
) |
|
$ |
3,521 |
|
|
RECONCILIATION OF OPERATING EXPENSES TO CASH OPERATING EXPENSES (unaudited) (in thousands) |
|||||||||||||||
|
|
|||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Operating expenses |
$ |
29,892 |
|
|
$ |
29,777 |
|
|
$ |
58,815 |
|
|
$ |
60,233 |
|
|
Stock-based compensation for selling, general and administrative costs |
|
(3,288 |
) |
|
|
(2,222 |
) |
|
|
(6,045 |
) |
|
|
(5,370 |
) |
|
Depreciation and amortization |
|
(7,208 |
) |
|
|
(11,277 |
) |
|
|
(14,444 |
) |
|
|
(22,461 |
) |
|
Cash operating expenses |
$ |
19,396 |
|
|
$ |
16,278 |
|
|
$ |
38,326 |
|
|
$ |
32,402 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250807566586/en/
Investor Contact
VP, Investor Relations
abonilla@blacksky.com
571-591-2864
Media Contact
Senior Director,
bksypr@blacksky.com
571-591-2865
Source:
