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.
Gen-3 Services Drive Subscription Growth
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.
Satellite Production and Sovereign Opportunities
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 inventory could allow BlackSky to begin delivering systems within about a year after receiving customer orders, compared with what O’Toole said could be a three- to five-year process for competitors starting from scratch.
BlackSky said it remains on track to deliver its first sovereign Gen-3 satellite in 2026 and expects additional delivery milestones to contribute to second-half revenue. O’Toole said demand for sovereign Mission Solutions is currently strongest internationally, though the company also sees opportunities with U.S. government customers.
Management said Mission Solutions can be uneven because contracts tend to be large and are delivered over multiple years. BlackSky does not separately disclose its Mission Solutions backlog.
AROS Development and Advanced Technology Programs
BlackSky received an eight-figure U.S. government contract during the quarter to advance development of its AROS system, designed for foundation mapping and broader-area monitoring applications. The company said the National Reconnaissance Office contract supports a targeted 2028 launch timeline for AROS.
Advanced Technology Program revenue increased 65% from the prior quarter as BlackSky began work under the AROS-related contract. The company also cited additional research and development contracts involving AI-enabled space-based intelligence, optical intersatellite links and advanced payload technology.
O’Toole said the NRO commitment, together with internal investment, is sufficient to keep AROS on track at this stage. He described the strategy as capital-expenditure light and said the company expects AROS-related work to move initially from Advanced Technology Programs to Mission Solutions, while a commercial constellation could eventually contribute to space-based intelligence revenue.
BlackSky said it is designing a single AROS configuration intended to meet both commercial and government requirements. The system is expected to build on Gen-3 technology and BlackSky’s existing space infrastructure, software platform and operational architecture.
Liquidity and 2026 Outlook
BlackSky ended the quarter with $244.1 million in cash, up more than 150% from a year earlier. The company raised $150 million through at-the-market offerings during the quarter, bringing total liquidity to more than $325 million, a 108% year-over-year increase.
Capital expenditures were approximately $15 million in the second quarter and about $31 million through the first half of the year. BlackSky reaffirmed its 2026 guidance for:
- Revenue of $130 million to $150 million
- Adjusted EBITDA of $12 million to $24 million
- Capital expenditures of $50 million to $60 million
O’Toole said the company expects all three business lines—space-based intelligence services, Mission Solutions and Advanced Technology Programs—to grow, while the recurring subscription business remains the company’s largest revenue component at approximately 70% of revenue.
About BlackSky Technology (NYSE:BKSY)
BlackSky Technology, Inc operates Earth observation and geospatial intelligence services through a constellation of small satellites and an analytics platform. The company collects and processes high-revisit satellite imagery, enabling near-real-time monitoring of global events and locations. Clients across government, defense and commercial sectors leverage BlackSky’s imagery and data to support decision-making in areas such as supply chain monitoring, humanitarian aid, infrastructure management and security operations.
Founded in 2014 as part of Spaceflight Industries, BlackSky has grown its satellite constellation and analytics capabilities to deliver satellite imagery with high revisit rates and rapid tasking.
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