BlackSky Raises 2026 Outlook After Record Third Quarter

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter revenue reached a record $42.8 million as the company lifted full-year revenue guidance for the second time this year.

BlackSky Technology Inc. (BKSY) reported record third-quarter revenue of $42.8 million, up 118% from $19.6 million a year earlier and 29% from $33.3 million in the second quarter, and raised its full-year 2026 outlook for the second time this year.

The real-time, space-based intelligence company said the year-over-year increase of $23.2 million was primarily driven by accelerating customer demand for Gen-3, which produced record space-based intelligence and AI services revenue of $32.7 million. That line was $15.8 million in the third quarter of 2025 and $25 million in the second quarter of 2026. Mission solutions revenue was $4.7 million and advanced technology programs revenue was $5.4 million.

Chief executive Brian E. O’Toole said the company delivered an exceptional third quarter with record revenue, strong margin growth, and record adjusted EBITDA, and that as it scales Gen-3 capabilities it expects to continue momentum on growing global demand for space-based intelligence and sovereign solutions. Recent wins cited included being named the exclusive provider of very-high resolution optical satellites under a $1 billion investment through a consortium that includes France and the UAE for an initial constellation of 50 satellites, a completed two-month seven-figure assured Gen-3 pilot with the U.S. government, and a fifth Gen-3 satellite that reached first light and revenue-generating operations within 24 hours.

Cost of sales as a percentage of revenue improved to 21% from 35% a year earlier. The company said the improvement reflects operating leverage from the growth of high-margin space-based intelligence services. Operating expenses were $33.4 million, including $4.4 million of non-cash stock-based compensation and $7.5 million of depreciation and amortization. Cash operating expenses were $21.5 million, compared with $18.2 million in the year-ago quarter; the company attributed the $3.3 million increase primarily to planned incremental investments.

Net income was $18.5 million, or $0.10 a share on a diluted basis, compared with a net loss of $15.3 million, or $0.44 a share, a year earlier. The company said the $33.8 million improvement was driven by strong operating results and changes in the gain on derivatives, which are driven by fluctuations in equity warrants and other equity instruments measured at fair value. The quarter included a $19.7 million gain on derivatives. Operating income was $405,000, versus an operating loss of $16.8 million a year earlier.

Adjusted EBITDA reached a record $12.8 million, a 29.9% margin on $42.8 million of revenue, up $17.3 million from a $4.5 million loss a year earlier. The company said the year-over-year increase was primarily driven by strong revenue growth, expanding gross margins, and operating leverage across the business.

Cash and cash equivalents, restricted cash, and short-term investments totaled $231.1 million as of September 30, 2026, down from $244.1 million at June 30. Third-quarter capital expenditures were $15.4 million.

As a result of the third-quarter performance, BlackSky is raising its full-year 2026 outlook for revenue and adjusted EBITDA for the second time this year. The company now expects revenue to be between $140 million and $150 million, and adjusted EBITDA to be between $18 million and $24 million. It is maintaining its full-year 2026 outlook for capital expenditures of between $50 million and $60 million.