BlackSky Technology, Inc. (NYSE: BKSY) has recently been the focus of an updated coverage report by Stonegate Capital Partners, highlighting the company's financial performance and strategic advancements in the second quarter of 2025. With reported revenues of $22.2M, an adjusted EBITDA loss of ($2.8)M, and an EPS of ($1.27), the company's financials reflect a mix of growth and challenges. The increase in Imagery and Software Analytical Services revenue to $18.0M, up 2.9% year-over-year, underscores the growing demand for Gen-3 imagery, while a decline in Professional and Engineering Services revenue to $4.2M from $7.5M in 2Q24 points to timing differences in contract recognition.
The company's strategic achievements include securing over $35.0M in new contracts, expanding its total backlog to $356.0M, with approximately 85% stemming from international customers. Notable contracts include a $24.0M NGA Luno A monitoring award and a multi-year Gen-2/Gen-3 contract with a new international defense customer, signaling BlackSky's strengthening position as a trusted intelligence partner globally. Additionally, the successful launch and commissioning of its second Gen-3 satellite, capable of delivering very-high resolution (35cm-class) imagery within 12 hours of launch, mark significant progress in the company's technological capabilities.
Financially, BlackSky has taken steps to bolster its balance sheet, completing a $185.0M upsized convertible note offering. This move, aimed at retiring $113M in outstanding debt, positions the company for continued investment in its Gen-3 and AROS constellation initiatives. Despite the adjusted EBITDA loss, the company reaffirmed its FY25 revenue guidance of $105M–$130M and adjusted EBITDA of breakeven to $10M, reflecting confidence in its growth trajectory and the anticipated impact of increased Gen-3 availability and backlog conversion in the latter half of the year.
Stonegate Capital Partners' valuation of BlackSky, using a DCF Model and EV/EBITDA comp analysis, suggests a promising outlook with a valuation range of $24.51 to $30.56. This analysis, coupled with the company's strategic contracts and technological advancements, paints a picture of a company on the rise, navigating the complexities of the global intelligence and satellite technology market with a clear vision for the future. For more information on BlackSky's initiatives and financials, visit https://www.blacksky.com.
