Stonegate Capital Partners has updated its coverage on BlackSky Technology, Inc. (NYSE: BKSY) following the company's fourth-quarter 2025 earnings release. The report highlights key financial metrics and strategic developments that underscore the company's performance and outlook.
BlackSky reported revenue of $35.2 million for the quarter, falling short of Stonegate's estimate of $41.1 million and consensus of $36.1 million. Adjusted EBITDA came in at $8.8 million, compared to the firm's estimate of $11.1 million and consensus of $7.2 million. Earnings per share (EPS) were ($0.02), beating Stonegate's estimate of ($0.18) and consensus of ($0.28).
Revenue breakdown reveals mixed performance across segments. Imagery and Software Analytical Services revenue declined to $14.5 million, down 17% year-over-year, with management remaining cautious due to budget uncertainty related to the EnhancedView Commercial Layer (EOCL) contract. In contrast, Mission Solutions revenue surged to $9.5 million from $1.0 million in the prior year, driven by a new international Gen-3 contract and milestone deliveries. Professional and Engineering Services revenue slipped to $11.2 million from $11.9 million year-over-year, attributed to project timing.
Adjusted EBITDA increased to $8.8 million from $7.4 million in the same quarter last year, supported by higher revenue and cost discipline. Gross margin improved significantly to 72.6% from 65.3% in the third quarter of 2025, reflecting a favorable revenue mix and ongoing cost controls.
Key takeaways from the update include $240 million in new awards, lifting total backlog to $345 million, primarily from international Gen-3 contracts. The fiscal year 2026 guidance implies continued investment in scaling capacity. Stonegate's analysis indicates that BlackSky's focus on international expansion and operational efficiency is positioning the company for long-term growth, despite near-term headwinds from EOCL budget uncertainties.
For more details, view the full announcement including downloadable images and bios here.
