Stonegate Capital Partners has updated its coverage on BlackSky Technology, Inc. (NYSE: BKSY), following the company's fourth-quarter 2025 earnings release. BlackSky reported revenue of $35.2 million, adjusted EBITDA of $8.8 million, and earnings per share of ($0.02). These results compare to Stonegate's estimates of $41.1 million, $11.1 million, and ($0.18), respectively, and consensus estimates of $36.1 million, $7.2 million, and ($0.28).
Revenue segmentation revealed mixed performance across business lines. Imagery and Software Analytical Services revenue declined to $14.5 million, a 17% decrease year-over-year, as management remained cautious amid EOCL-related budget uncertainty. 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 due to project timing.
Adjusted EBITDA increased to $8.8 million from $7.4 million in the prior 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 an improved revenue mix and ongoing cost controls.
A key highlight was the company's record backlog of $345 million, fueled by over $240 million in new awards, predominantly from international Gen-3 contracts. This backlog positions BlackSky for sustained revenue growth as it scales its capacity. Management's fiscal year 2026 guidance implies continued investment in expanding capacity to meet rising demand.
For more details, view the full announcement here. The company's strong backlog and margin expansion underscore its strategic positioning in the satellite imagery market, even as near-term budget headwinds persist.
