BlackSky Technology Inc. (NYSE: BKSY), a leader in space-based intelligence solutions, has released its financial results for the third quarter ending September 30, 2025. The company is navigating a complex landscape characterized by strong international demand for its offerings while also facing challenges in U.S. government contracts.

2. Strong International Demand Fuels Growth

Brian E. O’Toole, CEO of BlackSky, highlighted the robust international interest in the company’s services, stating, “Strong international demand for our space-based intelligence solutions drove over $60 million in new contract awards.” O’Toole noted that sovereign nations are increasingly recognizing the capabilities of BlackSky's Gen-3 satellites, which are crucial as these nations ramp up their defense budgets and acquisition cycles.

3. Financial Highlights

Revenue and Backlog

In the third quarter of 2025, BlackSky reported total revenue of $19.6 million. This revenue reflects a strategic shift as the company anticipates a reduction in its Electro-Optical Commercial Layer (EOCL) contract with the National Reconnaissance Office (NRO) amid broader uncertainties in U.S. government budgets.

The company also reported a substantial backlog of $322.7 million, with approximately 91% of this figure stemming from international contracts, indicating a strong pipeline of future revenue.

Cash Position

As of September 30, 2025, BlackSky's cash balance stands at $147.6 million, bolstering its financial position as it continues to invest in its satellite constellation and expand its operational capabilities.

4. Recent Contract Wins

BlackSky has been active in securing significant contracts, including:

A multi-year contract valued at over $30 million with a strategic international defense customer for high-cadence Gen-3 tactical ISR services.

A new multimillion-dollar contract for Gen-3 imagery services to the U.S. government.

A seven-figure delivery order from the NGA Luno A program, which focuses on AI-enabled change detection.

A seven-figure space domain awareness expansion contract with HEO for automated non-Earth imaging missions.

Additionally, the next Gen-3 satellite is already at the launch site, with expectations for its launch in the coming weeks, further enhancing the company’s capabilities.

5. Operating Expenses and Losses

Operating Expenses

BlackSky's operating expenses for the third quarter totaled $29.6 million, which included $3.5 million in non-cash stock-based compensation and $7.9 million in depreciation and amortization. When excluding these non-cash items, the cash operating expenses increased to $18.2 million, up from $15.6 million in the same period last year. This rise is attributed to overhead expenses previously included in capitalized satellite assets.

Net Loss and Adjusted EBITDA

The company reported a net loss of $15.3 million for the third quarter of 2025, compared to a net loss of $12.6 million in Q3 2024. Additionally, BlackSky's adjusted EBITDA for the quarter was a loss of $4.5 million, significantly down from an adjusted EBITDA of $0.7 million a year earlier. This decline was mainly driven by lower EOCL revenues and increased overhead costs associated with the LeoStella operations.

6. Looking Ahead

Despite the challenges faced in the U.S. government sector, BlackSky remains optimistic about its future. O’Toole expressed confidence in the company’s capacity to build on its momentum as it heads into the fourth quarter of 2025 and beyond. The combination of strong international demand, ongoing contract awards, and the anticipated launch of its next satellite positions BlackSky well for growth in 2026.

As BlackSky continues to navigate the evolving landscape of space-based intelligence, investors and stakeholders will be closely watching its performance and strategic initiatives in the coming months.

Original press release