BlackSky Technology Inc. (NYSE:BKSY) Q2 2025 Earnings: Revenue Miss and Wider Loss Disappoint Investors

BlackSky Technology Inc. (NYSE:BKSY) Reports Q2 2025 Results: Revenue Misses Estimates, Wider Loss Than Expected

BlackSky Technology Inc. released its second-quarter 2025 financial results, revealing a mixed performance relative to analyst expectations. The company reported revenue of $22.2 million, falling short of the consensus estimate of $23.66 million. Earnings per share (EPS) came in at -$0.52, worse than the anticipated -$0.40. The market reaction has been negative, with pre-market trading showing a decline of approximately 9.7%, reflecting investor disappointment.

Key Financial Highlights

• Revenue: $22.2 million, down 10.8% year-over-year (YoY) from $24.9 million in Q2 2024.
  • Imagery & software analytics revenue grew to $18.0 million, up slightly from $17.5 million YoY.
  • Professional and engineering services revenue declined to $4.2 million from $7.5 million YoY, attributed to timing differences in long-term contract revenue recognition.
• Net Loss: $41.2 million, significantly higher than the $9.4 million loss in Q2 2024, driven by a $24.4 million loss on derivatives.
• Adjusted EBITDA: Loss of $2.8 million, compared to a positive $2.1 million in the prior-year quarter.
• Cash Position: $94.9 million as of June 30, 2025, with pro forma liquidity exceeding $170 million following a $185 million convertible note offering in July.

Market Reaction and Outlook

The stock's sharp decline in pre-market trading suggests investors were anticipating stronger top-line growth and better cost management. The revenue miss, coupled with an expanding net loss, has likely contributed to the negative sentiment.

BlackSky adjusted its full-year 2025 revenue guidance to a range of $105 million to $130 million, down from prior expectations, citing U.S. government budget volatility and delays in international contracts. The company maintained its capital expenditure forecast of $60 million to $70 million.

Operational and Strategic Updates

• Successfully launched and commissioned its second Gen-3 satellite, with a third expected soon.
• Secured new contracts, including a $24 million facility monitoring order from the NGA Luno A program.
• Expanded international customer base with multi-million-dollar agreements for Gen-3 imagery services.
• Strengthened its balance sheet with a $185 million convertible note offering, used to pay down existing debt.

Analyst Estimates vs. Company Guidance

For Q3 2025, analysts expect revenue of $31.08 million and an EPS of -$0.31. BlackSky’s full-year revenue guidance midpoint ($117.5 million) is below the consensus estimate of $123.37 million, indicating potential headwinds in the second half of the year.

Conclusion

BlackSky’s Q2 results reflect operational progress in satellite deployment and contract wins but also highlight challenges in revenue growth and profitability. The market’s reaction underscores concerns over execution and near-term financial performance.

For more detailed earnings estimates and historical performance, visit BlackSky’s earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making any financial decisions.