BlackSky Q3 Revenue Jumps 118% as Gen-3 Sales Drive Record EBITDA

BlackSky Technology Inc. (NYSE: BKSY) reported record third-quarter 2026 revenue and adjusted EBITDA as increased use of its Gen-3 satellites lifted space-based intelligence sales. The company also raised its full-year revenue and adjusted EBITDA guidance while keeping its capital-spending outlook unchanged.

Revenue for the quarter ended September 30 rose 118% year over year to $42.8 million from $19.7 million. GAAP net income attributable to BlackSky was $18.5 million, compared with a net loss of $15.3 million in the prior-year quarter.

Adjusted EBITDA reached a record $12.8 million, reversing a $4.5 million loss a year earlier. The non-GAAP adjusted EBITDA margin was 30%, twice the sequential margin, while adjusted EBITDA increased by $8 million from the second quarter.

Space-Based Intelligence Leads Growth

Space-Based Intelligence and AI Services generated record revenue of $32.7 million, up 107% from $15.8 million a year earlier and 34% sequentially. The quarterly result represented an annualized revenue run rate above $100 million.

BlackSky said greater Gen-3 utilization supported the sequential increase. The company also reported converting multiple pilot programs into seven-figure contracts across U.S. government, international and commercial markets. Management said year-to-date sales had secured sufficient backlog for the segment to achieve full-year growth of 50% over 2025.

The segment provided most of the quarter’s operating leverage. Its revenue increased by about $17 million year over year, while cost of sales rose by approximately $600,000 to $4.9 million. BlackSky said more than 90% of each incremental revenue dollar contributed to its bottom line, reflecting the high-margin profile of Gen-2 and Gen-3 subscription sales.

The company also disclosed a pilot commercial channel with SkyFi, under which BlackSky was selected as the first satellite imagery provider for SkyFi’s Satellite Intelligence platform. Its very-high-resolution imagery is intended to support automated monitoring for Robinhood AI agents across areas such as vehicle production, logistics, data-center construction and theme-park attendance.

Mission Solutions and Technology Programs Expand

Mission Solutions revenue increased to $4.7 million from $900,000 in the prior-year quarter as BlackSky expanded Gen-3 production capacity. The first sovereign Gen-3 satellite was ready to ship and launch less than one year after the related contract award, and the company said three sovereign satellite deliveries remained on track for the fourth quarter.

BlackSky was also named the exclusive provider of very-high-resolution electro-optical satellites for a $1 billion international program to develop an AI-enabled, 50-satellite constellation incorporating optical, radar and other sensors. The company received an initial contract to begin development work but did not disclose its value.

Advanced Technology Programs revenue rose 80% year over year to $5.4 million from $3 million. Growth included contributions from the government-funded AROS development program, which BlackSky expects to be available for launch in 2028. The company also reported increased customer research-and-development funding for optical inter-satellite link integration.

BlackSky launched its fifth Gen-3 satellite in September, with the spacecraft beginning to generate revenue within 24 hours. Two additional commercial Gen-3 satellites were scheduled to launch during 2026, alongside the three planned sovereign deliveries in the fourth quarter.

Costs, Cash and Updated Outlook

Cash operating expenses, a non-GAAP measure, rose to $21.4 million from $18.3 million. However, they declined to 50% of revenue as sales growth outpaced the increase in costs. GAAP operating expenses were $33.4 million, compared with $29.6 million a year earlier.

The company generated positive operating cash flow during the quarter. Its quarter-end cash balance, including cash and cash equivalents, restricted cash and short-term investments, was $231.1 million, up 57% year over year.

BlackSky now expects 2026 revenue of $140 million to $150 million, compared with its previous range of $130 million to $150 million. It raised adjusted EBITDA guidance to $18 million to $24 million from $12 million to $24 million. Expected capital expenditures remain unchanged at $50 million to $60 million.

The company did not reconcile its adjusted EBITDA outlook to the most directly comparable GAAP measure because items including stock-based compensation, changes in warrant-liability values, and depreciation and amortization cannot be reasonably predicted. BlackSky also cautioned that its forecasts are based on current assumptions and remain subject to risks and uncertainties described in its regulatory filings.