BlackSky Technology Q3 2026 results

Updated from live prices and SEC filings

BlackSky revenue rose 118% to a record $42.8M and it swung to net income of $18.5M from a $15.3M loss, with record adjusted EBITDA of $12.8M. It raised 2026 guidance to revenue of $140M to $150M and adjusted EBITDA of $18M to $24M.

BlackSky Technology (BKSY) reported results for the three months to 30 September 2026 on 5 Nov 2026. Record revenue up 118% to $42.8M, net income of $18.5M.

The numbers

MeasureQ3 2026Change
Revenue$42.8M+118% (from $19.6M); +29% on Q2
Space-based intelligence & AI services revenue$32.7Mfrom $15.8M
Mission solutions revenue$4.7Mfrom $0.9M
Advanced technology programs revenue$5.4Mfrom $3.0M
Operating income$0.4Mfrom a $16.8M loss
Net income$18.5Mfrom a $15.3M loss
Diluted EPS$0.10from a $0.44 loss
Adjusted EBITDA$12.8Mrecord; 29.9% margin, from -$4.5M
Cash, restricted cash and short-term investments$231.1Mat 30 September 2026

Revenue by line

LineQ3 2026Q3 2025Direct costs Q3 2026
Space-based intelligence & AI services$32.7M$15.8M$4.9M
Mission solutions$4.7M$0.9M$1.3M
Advanced technology programs$5.4M$3.0M$2.8M
Total$42.8M$19.6M$9.1M

Direct costs exclude depreciation and amortisation, as presented by BlackSky.

What stood out

  • Net income was helped by a $19.7M gain on derivatives; operating income was $0.4M.
  • Deployed a fifth Gen-3 satellite, which reached first light and revenue-generating operations within 24 hours.
  • Named exclusive provider of very high resolution optical satellites for a $1B consortium investment including France and the UAE, covering an initial 50-satellite constellation.
  • An international defence customer moved from a small Gen-2 pilot to a seven-figure Gen-3 Assured subscription in under six months.
  • Won a seven-figure renewal with HEO for non-Earth imaging space domain awareness services.

Analysis

The growth is in the highest-margin line

Space-based intelligence and AI services, BlackSky's imagery and analytics subscriptions, more than doubled to $32.7M and made up 76.4% of revenue. Its direct costs were $4.9M, so before depreciation that line kept about 85 cents of every dollar. Across the whole business, direct costs fell to 21.2% of revenue from 34.7% a year earlier.

Overheads grew far more slowly than sales. Selling, general and administrative costs rose 16.8% to $25.4M while revenue rose 118%, which is why the operating line moved from a $16.8M loss to a $0.4M profit.

The profit is mostly an accounting gain

Net income of $18.5M included a $19.7M gain on derivatives. Without it, pre-tax income would have been a loss of about $1.2M. The derivative gain also explains the gap between basic earnings per share of $0.45 and diluted earnings per share of $0.10.

The more durable improvement is in cash. Operating cash outflow for the first nine months was $2.3M, against $19.0M a year earlier, so the core business is now close to funding itself before capital spending.

Guidance implies Q3 is a new floor

Nine-month revenue was $96.9M, up 35.8%. The raised full-year range of $140M to $150M therefore implies Q4 revenue of roughly $43M to $53M, at or above the record Q3 level. This was the second guidance increase of the year.

Adjusted EBITDA guidance rose to $18M to $24M and capital spending guidance stayed at $50M to $60M. In the first nine months BlackSky spent $46.5M on property, equipment and satellites in progress.

International customers are carrying more of the story

The headline commercial win was selection as exclusive provider of very high resolution optical satellites for a $1B consortium investment including France and the UAE, covering an initial 50-satellite constellation. An international defence customer also moved from a small Gen-2 pilot to a seven-figure Gen-3 Assured subscription in under six months.

That pattern, a pilot followed by a larger subscription, is how BlackSky is trying to turn one-off contracts into recurring revenue. A wider international base also reduces dependence on US government budgets, though the US government remains a customer through pilots such as the seven-figure assured Gen-3 trial completed in the quarter.

The cost of getting here

BlackSky raised $160.0M of equity, net of costs, in the first nine months of 2026, and the basic weighted average share count rose 15.7% from a year earlier to 40.7M. It ended September with $231.1M of cash, restricted cash and short-term investments.

Analysis by Orbit Alpha from the BlackSky results release and the sources below. Percentages, implied figures and totals not stated by BlackSky are Orbit Alpha calculations from reported figures.

Outlook

BlackSky raised its 2026 outlook for the second time this year, to revenue of $140M to $150M and adjusted EBITDA of $18M to $24M, and kept capital expenditure guidance at $50M to $60M.

What to watch next

  • Q4 revenue against the $43M to $53M implied by full-year guidance.
  • Further Gen-3 satellite launches and how quickly each reaches revenue-generating operations.
  • Progress on the France and UAE consortium programme, the largest commercial opportunity named in the release.
  • Whether net income continues to swing with derivative gains and losses, which can move the headline result in either direction.

Questions and answers

Did BlackSky make a profit in Q3 2026?

BlackSky reported net income of $18.5M for the three months to 30 September 2026, against a $15.3M loss a year earlier. That included a $19.7M gain on derivatives; operating income was $0.4M.

What is BlackSky's 2026 revenue guidance?

BlackSky raised its 2026 revenue guidance to $140M to $150M and adjusted EBITDA guidance to $18M to $24M, and kept capital spending guidance at $50M to $60M.

How much cash does BlackSky have?

BlackSky had $231.1M of cash, restricted cash and short-term investments at 30 September 2026.

More on BlackSky Technology

Sources

Figures as reported by the company; changes are against the same quarter a year earlier unless stated. Orbit Alpha is information, not investment advice.

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