BlackSky Technology Q2 Earnings Call Highlights

Strong Q2 performance: Revenue rose 50% year over year to $33.3 million, while adjusted EBITDA reached $4.7 million, or a 14.2% margin. Subscription-based space intelligence and AI revenue climbed to a record $24.5 million. Gen-3 is driving growth: Gen-3 products accounted for 90% of quarterly growth, helping imagery and AI subscriptions reach a $100 million annual run rate. BlackSky expects eight Gen-3 satellites in orbit by year-end and plans to launch two more in Q3. Outlook reaffirmed: BlackSky ended the quarter with more than $325 million in liquidity and maintained 2026 guidance for $130 million–$150 million in revenue, $12 million–$24 million in adjusted EBITDA and $50 million–$60 million in capital expenditures.

BlackSky Technology NYSE: BKSY reported second-quarter 2026 revenue growth of 50% from a year earlier as adoption of its Gen-3 satellite imagery services increased, helping the company reach positive adjusted EBITDA and reaffirm its full-year outlook. Revenue for the quarter totaled $33.3 million, up 60% sequentially from the first quarter, Chief Financial Officer Henry Dubois said. Space-based intelligence and AI services generated a record $24.5 million in revenue, rising 50% sequentially, driven by expanding recurring subscription revenue and international demand.

The company’s adjusted EBITDA was $4.7 million, compared with a loss implied by a $7.5 million year-over-year improvement. Adjusted EBITDA margin was 14.2% on total revenue. Cash operating expenses were flat from the prior-year period despite the 50% increase in revenue, according to Dubois. Chief Executive Officer Brian O’Toole said BlackSky’s Gen-3 satellites are delivering 35-centimeter imagery and have become the primary driver of growth. He said Gen-3-related products and services accounted for 90% of the company’s growth during the quarter. BlackSky reached a $100 million annual run rate for imagery and AI subscription services in the quarter. O’Toole said the higher-margin subscription business is beginning to produce operating leverage as Gen-3 capacity expands.

International space-based intelligence and AI services revenue rose 150% from the second quarter of 2025, while total international revenue increased 200% over the prior-year period. Multi-year international subscription contracts represent more than 80% of BlackSky’s funded backlog, O’Toole said. During the question-and-answer session, O’Toole said the quarterly increase in space-based intelligence and AI revenue was entirely subscription revenue rather than one-time recognition. He said additional customers are still coming online and that existing customers are expanding contracts and shifting more tasking toward Gen-3 services. The company plans to launch two additional satellites for its commercial constellation in the third quarter. Despite launch-related delays, BlackSky expects to have eight Gen-3 satellites in orbit by year-end. O’Toole said no additional Gen-3 launches are required for the company to achieve its 2026 revenue targets.

BlackSky has more than 20 Gen-3 satellites in production or in its pipeline. O’Toole said the satellites will support the commercial constellation, existing Mission Solutions customer contracts and inventory for prospective sovereign customers. The company’s target commercial constellation comprises roughly 12 to 15 satellites to maintain hourly revisit service, according to O’Toole. Maintaining available satellite inventor.