DALLAS, TX -- February 27th, 2026 -- BlackSky Technology, Inc. (NYSE: BKSY): Stonegate Capital Partners Updates Coverage on BlackSky Technology, Inc. (NYSE: BKSY). BKSY reported revenue, adj EBITDA, and EPS of $35.2M, $8.8M, and ($0.02), respectively. This compares to our/consensus estimates of $41.1M/$36.1M, $11.1M/$7.2M, and ($0.18)/($0.28). Imagery and Software Analytical Services revenue declined to $14.5M (-17% y/y), with management remaining cautious amid EOCL-related budget uncertainty. Mission Solutions rose to $9.5M (vs. $1.0M last year) on a new international Gen-3 contract and milestone deliveries. Professional and Engineering Services slipped to $11.2M from $11.9M y/y due to project timing. Adjusted EBITDA increased to $8.8M from $7.4M on higher revenue and cost discipline, while gross margin improved to 72.6% from 65.3% in 3Q25.
Contracts: As of FY25, BKSY secured over $240M in new multi-year contracts, growing backlog to $345M, with international Gen-3 contracts representing over 90% of total backlog. In 4Q25, highlights included a new eight-figure multi-year award for a Gen-3 satellite and advanced imagery services, continued milestone execution on a previously disclosed $30M+ tactical ISR contract, seven-figure NGA Luno options, and additional orders through the U.S. Space Force’s Global Data Marketplace. The Company also continued converting international Gen-3 early access pilots into longerterm subscriptions, while management noted its addressable market is expanding materially, with the number of countries that now have sovereign space capability rising to over 60, versus roughly 12 to 15 countries less than five years ago.
Gen-3 Satellite Launch: BKSY’s third Gen-3 satellite has already entered commercial service, with the next satellite at the launch site and the constellation on track to scale to between 8 or 9 satellites by FY26 year-end. Management also highlighted strengthening Gen-3 demand, with growing customer adoption supporting incremental revenue across space-based intelligence, advanced imagery, and AI-enabled analytics, particularly as international customers expand sovereign, mission-critical use cases.
Balance Sheet and Liquidity: Cash, restricted cash, and short-term investments totaled $125.6M. Unbilled contract assets declined to approximately $26.8M as major contract milestones triggered invoicing, while accounts receivable ended at $37.6M. Capital expenditures were $12.7M in 4Q25 and $46.6M for FY25. Including cash, unbilled contract assets, accounts receivable, and available vendor financing, management cited total liquidity of over $225M.
Guidance: BKSY announced its FY26 outlook for revenue of $120M to $145M, adjusted EBITDA of $6M to $18M, and capital expenditures of $50M to $60M. Management expects FY26 to be transformative, supported by international demand, Gen 3 availability, and backlog conversion. We view this guidance as reasonable and have adjusted our model accordingly.
Valuation: We use a DCF Model and EV/EBITDA comp analysis to guide our valuation. Our DCF analysis produces a valuation range of $22.77 to $27.88 with a mid-point of $25.09. Our EV/EBITDA valuation results in a range of $25.06 to $30.49 with a mid-point of $27.77.
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.
