BlackSky Technology, Inc. reported third-quarter revenue of $19.6 million with adjusted EBITDA of negative $4.5 million and earnings per share of negative $0.44, falling short of analyst expectations across all key metrics. The performance reflects ongoing challenges in the government contracting sector while the company simultaneously secures substantial international defense agreements.
Imagery and Software Analytical Services revenue decreased to $15.8 million, representing an 8.6% year-over-year decline primarily attributed to reduced tasking from the National Reconnaissance Office's EnhancedView Contract and broader U.S. government budget uncertainties affecting near-term imagery orders. Professional and Engineering Services revenue also declined to $3.8 million from $5.2 million in the previous quarter, largely due to project timing and milestone-based revenue recognition patterns.
Despite the quarterly challenges, BlackSky secured over $60 million in new contracts during the third quarter, growing its total backlog to $322.7 million. Notably, approximately 91% of this backlog originates from international customers, signaling a strategic shift toward global markets. The company announced a multi-year contract valued at over $30 million with a strategic international defense customer to deliver Gen 3 tactical intelligence, surveillance, and reconnaissance services. Additional significant wins included a new multimillion-dollar Gen 3 imagery award with a U.S. customer, a seven-figure Luno A delivery order for AI-enabled change detection, and a space domain awareness expansion with HEO.
The company's satellite deployment schedule remains on track, with the third Gen-3 satellite expected to launch by year-end. BlackSky continues toward a fully operational commercial constellation, targeting 12 satellites in orbit by the end of 2025. Management emphasized rising demand for Gen-3 services, including high-cadence tasking and AI-enabled analytics as customers integrate these capabilities into secure, sovereign environments. Early access agreements for Gen-3 services continue to expand across international defense and intelligence customers, reinforcing BlackSky's position as a trusted intelligence partner globally according to Stonegate Capital Partners updates available at https://www.stonegatecp.com.
Financially, BlackSky maintained cash, restricted cash, and short-term investments totaling $147.6 million at quarter-end, reflecting net proceeds from an upsized convertible note offering and warrant exercises. The company reported $43.4 million in unbilled contract assets, with $36.0 million expected to be billed and collected over the next twelve months. Capital expenditures reached $15.0 million for the quarter and $33.9 million year-to-date, supporting the ongoing satellite deployment program.
BlackSky maintained its full-year 2025 guidance, projecting revenue between $105 million and $130 million, adjusted EBITDA ranging from breakeven to $10 million, and capital expenditures of $60 million to $70 million. Management anticipates a stronger fourth quarter supported by international demand, Gen 3 availability, and backlog conversion. The company's strategic pivot toward international defense contracts and continued satellite deployment positions it for potential growth despite current government budget headwinds affecting the broader geospatial intelligence sector.
