BlackSky reported third‑quarter 2025 revenue of $19.6 million, a decline of 13% from $22.5 million in the same period last year, and a net loss of $15.3 million, widening from a $12.6 million loss in Q3 2024. Adjusted EBITDA turned into a $4.5 million loss, compared with a $0.7 million loss a year earlier, while operating expenses rose to $29.6 million. Cost of sales climbed to 35% of revenue, up from 29% in Q3 2024, reflecting higher overhead from the LeoStella integration and a reduced EOCL contract with the National Reconnaissance Office. Cash, cash equivalents, restricted cash and short‑term investments stood at $147.6 million, and capital expenditures for the quarter were $15.0 million, bringing year‑to‑date spend to $33.9 million. The company’s backlog was $322.7 million, down from $366 million reported in the original article but consistent with other sources.
Revenue fell short of the consensus estimate of $28.5 million to $29.0 million, a miss of roughly 32%. The shortfall is largely attributable to the contraction of the EOCL contract and weaker U.S. government demand, while international contracts grew, contributing $60 million in new awards. The GAAP earnings‑per‑share loss of $0.44 beat the consensus of –$0.47 by $0.03, a modest but noteworthy improvement driven by disciplined cost management in non‑core operating segments.
CEO Brian O’Toole highlighted the company’s “strong international demand” and the $60 million in new contracts, underscoring a shift toward commercial and sovereign markets. He also reiterated confidence in the upcoming Gen‑3 satellite constellation and the Spectra platform, explaining why BlackSky maintained its full‑year 2025 guidance for revenue, adjusted EBITDA, and capital expenditures.
The market reaction was negative, with analysts focusing on the revenue miss as the primary driver. Despite the earnings beat, the significant shortfall in top‑line growth outweighed the positive EPS outcome, leading to a cautious stance among investors.
Business implications point to margin compression driven by LeoStella integration costs and the EOCL contract reduction, but the company’s strong cash position and sizable international backlog provide a buffer. The Gen‑3 launch and continued demand for high‑frequency monitoring services are positioned as tailwinds that could offset current headwinds and support long‑term growth.
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