Core Insights - Both UiPath (PATH) and BlackSky Technology (BKSY) are innovative technology companies focused on automation and intelligence, with UiPath specializing in robotic process automation (RPA) and BlackSky in space-based intelligence and satellite imagery [1] Group 1: UiPath (PATH) - UiPath's growth is driven by its AI-driven enterprise automation platform, with a 6% year-over-year revenue growth and a 12% increase in annual recurring revenues in Q1 of fiscal 2026, indicating strong customer adoption [2][3] - The company has a dollar-based net retention rate of 108% and a 7.5% year-over-year growth in free cash flow, showcasing its growth trajectory and robust capital allocation with a $227.5 million share purchase program [3] - UiPath's extensive automation platform differentiates itself by integrating RPA with AI, which positions the company for sustainable growth as AI adoption accelerates [4] - The global market for RPA and enterprise automation is expected to grow at a CAGR of 43.9% from 2025 to 2030, with UiPath maintaining a leadership position through strong partnerships with Amazon, Microsoft, and Salesforce [5] Group 2: BlackSky Technology (BKSY) - BlackSky's financial performance is linked to advancements in satellite technology and AI-driven analytics, with $18 million in revenues from imagery and software analytical services in the June quarter, driven by Gen-3 satellites [7] - The company has an ambitious revenue outlook of $105-$130 million, supported by a contract backlog of $356 million, with 85% of contracts from international customers [8][9] - Despite securing a $24 million facility monitoring order from the National Geospatial-Intelligence Agency, BlackSky reported a net loss of $41.2 million, with a significant increase in investment costs and an 11% year-over-year decline in top line [11][12] Group 3: Financial Estimates and Valuation - The Zacks Consensus Estimate for UiPath's 2025 sales is $1.6 billion, reflecting an 8.5% year-over-year increase, with earnings expected to rise by 5.7% to 56 cents per share [12] - For BlackSky, the 2025 sales estimate is $117.7 million, indicating a 15.2% year-over-year growth, but the consensus for loss is projected at $3.05 per share, worsening from the previous year's loss [14] - UiPath is trading at a forward price/sales ratio of 3.71X, below its median of 4.42X, suggesting undervaluation, while BlackSky appears overvalued at 4.47X against its median of 2.5X [15] Group 4: Overall Verdict - Both companies present promising growth narratives driven by AI and next-gen technology, but UiPath's strong recurring revenues, efficient capital allocation, and more attractive valuation suggest a better growth outlook [17][18]

Core Insights - BlackSky Technologies (BKSY) shares have decreased by 28% over the past month, while the industry has seen a 6.4% increase [1][6] - The company is at a pivotal moment in 2025, focusing on real-time satellite analytics and expanding its capabilities through partnerships and financial maneuvers [2] - Competition is intensifying from Planet Labs and Parsons Corporation, necessitating a clear understanding of BlackSky's strengths relative to its peers [2][8][9] Company Strategy - BlackSky's 2025 strategy centers around the rollout of its Gen-3 satellite constellation, which aims to provide higher resolution and faster analytics [3] - Currently, two Gen-3 satellites are operational, with four more expected to launch by the end of the year, enhancing real-time data delivery [3][6] Financial Performance - The company raised $185 million through convertible notes to support Gen-3 launches, but has faced challenges with an 11% year-over-year revenue decline to $22.2 million in Q2 2025 [4][6] - Management has reduced its 2025 revenue and adjusted EBITDA guidance due to delayed U.S. government budgets and unpredictable international contracts [4][10] Revenue and Profitability Outlook - A 15% year-over-year revenue increase is anticipated in 2025, driven by government contracts and the Gen-3 fleet, although profitability remains a concern with an expected loss of $3.05 per share [10] - The upcoming quarters are critical for converting the sales pipeline into recurring revenues and managing capital expenditures effectively [11] Competitive Landscape - Planet Labs has a broader revenue base and focuses on environmental monitoring, while BlackSky emphasizes rapid deployment and real-time analytics for defense operations [8] - Parsons Corporation is investing in analytics platforms and leveraging government relationships, making it a significant competitor in BlackSky's target market [9] Sales and Earnings Estimates - Zacks Consensus Estimates project revenues of $117.65 million for the current year and $156.79 million for the next year, with year-over-year growth estimates of 15.23% [12] - Earnings per share are expected to be -$3.05 for the current year, reflecting a year-over-year decline of 22.49% [13]

Summary of BlackSky (BKSY) FY Conference Call - August 11, 2025 Company Overview - **Company**: BlackSky (BKSY) - **Industry**: Satellite Imaging and Analytics - **Technology**: Real-time space-based intelligence with a constellation of approximately a dozen satellites Key Points and Arguments 1. **Market Dynamics**: The satellite industry is experiencing significant innovation, with costs decreasing and quality improving, leading to a new market for satellite imaging that BlackSky is currently dominating [2][3][12] 2. **Product Offering**: BlackSky's Gen 3 satellites provide high-resolution images with rapid delivery, allowing for near real-time analytics [5][6][11] 3. **Revenue Growth**: The company has secured contracts valued at approximately $2.4 billion over the past few years, contributing to revenue growth, with a forecasted revenue of $105 million to $130 million for the current year [7][8][12] 4. **Government Contracts**: The U.S. government represents about 60% of BlackSky's business, although this has decreased to 50% in the first half of the year. International revenues are growing significantly [8][9][20] 5. **Financial Position**: BlackSky is adjusted EBITDA positive and expects to achieve free cash flow positivity within the next 18 to 24 months. The company raised $185 million in a convertible note to improve its financial position [9][12][25] 6. **Market Potential**: The total addressable market for BlackSky is estimated at $100 billion, with a compound annual growth rate (CAGR) of 13%. The company believes it has only begun to tap into this market [12][13] 7. **Competitive Advantage**: BlackSky differentiates itself by offering real-time monitoring capabilities, allowing for hourly revisits of any location on Earth, unlike competitors who focus on mapping [13][14][15] 8. **Future Growth**: The company plans to expand its satellite constellation to 12 by 2026, with the potential to increase further based on demand [16][68] 9. **AI Capabilities**: BlackSky has developed its AI platform, Spectra, in-house, allowing for rapid processing of satellite imagery and identification of objects, providing a competitive edge [65][66] 10. **Backlog and Contracts**: BlackSky's backlog stands at $356 million, with 85% from international customers. The company has a strong pipeline of potential contracts valued at $2.4 billion [20][58] Additional Important Information - **Gen 3 Satellites**: The Gen 3 satellites are expected to be game-changing, with a significant increase in resolution and analytics capabilities compared to Gen 2 [8][10][44] - **International Growth**: The international customer base has grown from 15% to 50% of total revenue, indicating strong demand for BlackSky's services [45] - **Analytics Revenue**: Currently, analytics account for approximately 15-20% of total revenue, with expectations for growth as more data becomes available from Gen 3 satellites [48][51] - **Government Budget Uncertainty**: There is near-term uncertainty regarding U.S. government budgets, but long-term growth opportunities are anticipated [30][31][33] This summary encapsulates the key insights from the BlackSky conference call, highlighting the company's strategic positioning, growth potential, and market dynamics within the satellite imaging industry.

Company Performance - BlackSky Technology, Inc. (NYSE: BKSY) reported revenue of $22.2 million, which met consensus estimates, while adjusted EBITDA was a loss of $2.8 million compared to a profit of $2.1 million in the prior year [1] - Earnings per share (EPS) was reported at ($1.27), aligning with consensus estimates of ($0.48) [1] - Imagery and Software Analytical Services revenue increased to $18.0 million, reflecting a year-over-year growth of 2.9%, driven by growing demand for Gen-3 imagery [1] - Professional and Engineering Services revenue declined to $4.2 million from $7.5 million in 2Q24 due to timing differences in contract recognition [1] - Consolidated gross margins slightly decreased to 71.9% from 72.4% in 2Q24 [1] Future Outlook - BlackSky reaffirmed its FY25 revenue guidance of $105 million to $130 million and adjusted EBITDA guidance of breakeven to $10 million, citing short-term U.S. government budget volatility [6] - The company successfully launched its second Gen-3 satellite, which is now delivering high-resolution imagery within 12 hours, with four more Gen-3 satellites expected to launch by year-end [6] - The backlog reached $356 million, with 85% of it being international, and the company has a strong pro forma cash position following a $185 million upsized convertible note offering [6]

[Part I. Financial Information](index=6&type=section&id=Part%20I.%20Financial%20Information) This section presents the company's financial statements, management's analysis, and market risk disclosures [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents BlackSky Technology Inc.'s unaudited condensed consolidated financial statements and related notes as of June 30, 2025 [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows total assets increased to **$310.8 million** and total liabilities rose to **$224.2 million**, driven by cash, investments, and derivative liabilities Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $22,555 | $13,056 | | Short-term investments | $71,231 | $39,406 | | Total current assets | $138,796 | $106,736 | | Total assets | $310,798 | $254,146 | | **Liabilities & Equity** | | | | Total current liabilities | $37,400 | $26,022 | | Derivative liabilities | $40,498 | $17,964 | | Long-term debt - net | $117,271 | $105,736 | | Total liabilities | $224,238 | $160,157 | | Total stockholders' equity | $86,560 | $93,989 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Total revenue decreased to **$22.2 million** for Q2 2025, while net loss widened significantly to **$41.2 million**, primarily due to derivative losses Statement of Operations Summary (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $22,199 | $24,938 | $51,743 | $49,174 | | Operating Loss | $(13,940) | $(11,721) | $(25,919) | $(24,974) | | (Loss) gain on derivatives | $(24,435) | $5,273 | $(22,534) | $5,019 | | Net Loss | $(41,239) | $(9,397) | $(54,052) | $(25,207) | | Net loss per share | $(1.27) | $(0.52) | $(1.71) | $(1.40) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to **$20.0 million** for the six months ended June 30, 2025, while investing and financing activities increased Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $19,965 | $(5,602) | | Net cash used in investing activities | $(49,821) | $(23,048) | | Net cash provided by financing activities | $39,186 | $21,865 | | **Net increase (decrease) in cash** | **$9,330** | **$(6,785)** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant corporate actions, including the issuance of Convertible Notes, an ATM offering, and the LeoStella acquisition, along with accounting policies and backlog - In July 2025, the Company issued **$185.0 million** in Convertible Notes due 2033[24](index=24&type=chunk) - During the first six months of 2025, the company sold **3.7 million shares** through its at-the-market (ATM) offering program, generating gross proceeds of **$42.5 million**[25](index=25&type=chunk) - As of June 30, 2025, the company had a total backlog of **$356.3 million**, which it expects to recognize over the coming years[68](index=68&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, including revenue trends, increased net loss due to derivative losses, and improved liquidity from recent financing activities [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Total revenue decreased in Q2 2025 but increased for the six-month period, while net loss significantly widened due to non-cash derivative losses Results of Operations Comparison (in thousands) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $22,199 | $24,938 | $51,743 | $49,174 | | Operating Loss | $(13,940) | $(11,721) | $(25,919) | $(24,974) | | Net Loss | $(41,239) | $(9,397) | $(54,052) | $(25,207) | - The decrease in Q2 2025 professional and engineering services revenue was due to the progress of revenue recognition on long-term contracts[143](index=143&type=chunk) - The increase for the six-month period was primarily due to a new contract for the delivery of one Earth observation satellite[144](index=144&type=chunk) - Selling, general, and administrative expenses increased **19.1%** for the six months ended June 30, 2025, primarily due to the workforce acquired from the LeoStella acquisition, higher stock-based compensation, and increased IT and professional fees[149](index=149&type=chunk) [Non-GAAP Financial Measures](index=44&type=section&id=Non-GAAP%20Financial%20Measures) The company reports Adjusted EBITDA, a non-GAAP measure, which showed a loss of **$3.4 million** for the six months ended June 30, 2025 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(41,239) | $(9,397) | $(54,052) | $(25,207) | | Loss (gain) on derivatives | $24,435 | $(5,273) | $22,534 | $(5,019) | | Depreciation and amortization | $7,208 | $11,277 | $14,444 | $22,461 | | Stock-based compensation | $3,454 | $2,362 | $6,351 | $5,725 | | **Adjusted EBITDA** | **$(2,817)** | **$2,145** | **$(3,434)** | **$3,521** | [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity significantly improved with **$185.0 million** in Convertible Notes and **$42.5 million** from an ATM offering, supporting future capital needs - In July 2025, the company issued **$185.0 million** in principal amount of Convertible Notes due 2033, bearing interest at **8.25%** per year[164](index=164&type=chunk)[165](index=165&type=chunk) - The company raised **$42.5 million** in gross proceeds from its at-the-market (ATM) offering during the six months ended June 30, 2025[169](index=169&type=chunk) - Following the repayment of loans from related parties and a commercial bank line in July 2025, the company is no longer subject to any financial or non-financial debt covenants[168](index=168&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company has indicated that this section is not applicable for this reporting period - The company states that Quantitative and Qualitative Disclosures About Market Risk are not applicable[205](index=205&type=chunk) [Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were effective as of June 30, 2025, excluding the recently acquired LeoStella from internal control evaluation - The company's Certifying Officers concluded that as of June 30, 2025, disclosure controls and procedures were effective at a reasonable assurance level[206](index=206&type=chunk) - The company acquired LeoStella in November 2024 and excluded it from the evaluation of internal control over financial reporting for the quarter ended June 30, 2025, as it is still in the process of integration[209](index=209&type=chunk) [Part II. Other Information](index=54&type=section&id=Part%20II.%20Other%20Information) This section provides additional information, including legal proceedings, updated risk factors, equity sales, and other disclosures [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in two putative class action lawsuits related to its 2021 merger, expecting indemnification obligations for former officers - Two putative class action lawsuits, Drulias v. Osprey Sponsor II, LLC and Cheriyala v. Osprey Sponsor II, LLC, were filed in May 2024 concerning the company's 2021 merger[214](index=214&type=chunk)[215](index=215&type=chunk) - The complaints allege breach of fiduciary duty, unjust enrichment, and misleading disclosures in the merger proxy statement against former directors and officers of Osprey[214](index=214&type=chunk)[215](index=215&type=chunk) - Although not named as a defendant in the suits, BlackSky expects to have certain indemnification requirements for the directors and officers involved[217](index=217&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) This section highlights new risks related to the company's indebtedness, potential stock dilution, and stock price volatility, noting its 'smaller reporting company' status - The company's ability to make scheduled payments on its debt, including the new convertible notes, depends on financial performance and economic conditions that are beyond its control[220](index=220&type=chunk) - The conversion of the convertible notes may dilute the ownership interest of existing stockholders and could depress the price of the Class A common stock[225](index=225&type=chunk)[226](index=226&type=chunk) - The company benefits from "smaller reporting company" status, which allows for reduced disclosure obligations regarding executive compensation and audited financial statements[232](index=232&type=chunk) - This status will be lost for filings beginning January 1, 2026[234](index=234&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports selling **3.1 million shares** through its ATM offering in Q2 2025, generating **$37.1 million** in gross proceeds for working capital ATM Offering Summary for Q2 2025 | Metric | Value | | :--- | :--- | | Shares Sold | 3.1 million | | Gross Proceeds | $37.1 million | | Average Price Per Share | $11.89 | | Net Proceeds | $35.8 million | [Other Information](index=59&type=section&id=Item%205.%20Other%20Information) During the quarter ended June 30, 2025, no directors or officers of the company adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[245](index=245&type=chunk) [Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists key exhibits filed with the Form 10-Q, including the Indenture for Convertible Notes and CEO/CFO certifications - Key exhibits filed include the Indenture for the company's **8.25%** Convertible Senior Notes due 2033 and CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906[247](index=247&type=chunk)

Core Insights - BlackSky Technology Inc. (NYSE: BKSY) reported Q2 '25 earnings, revealing a surprising revenue decline of 11.5% year-over-year [1] Financial Performance - The company's revenue for Q2 '25 was disappointing, showing a decrease of 11.5% compared to the same quarter last year [1]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $51.7 million, an increase of $2.6 million or 5.2% compared to the same period last year [25] - Adjusted EBITDA for Q2 2025 was a loss of $3.4 million, compared to an adjusted EBITDA of $3.5 million in the prior year period [27] - Cash position at the end of Q2 2025 was $94.9 million, more than double the cash balance from a year ago [30] Business Line Data and Key Metrics Changes - Revenue growth was primarily driven by higher professional and engineering services, with increased revenues from the high-margin imagery and analytics business [25] - Adjusted imagery and analytics cost of sales for Q2 2025 was $7.2 million, up only $400,000 compared to the same period last year [26] - The company expects advanced services to ramp up once general availability begins in Q4 2025 [25] Market Data and Key Metrics Changes - Approximately 85% of the funded backlog of over $350 million is from international customers for Gen three services [15] - The company is seeing significant demand for Gen three services from a diverse international market, with multiple early access agreements signed [7][14] Company Strategy and Development Direction - The company is focused on capitalizing on the growing global market for real-time space-based intelligence solutions, with a strong emphasis on innovation and vertical integration [6][36] - The recent announcement of the Eros constellation represents a new growth and market expansion opportunity, targeting digital mapping applications [21][24] - The company aims to maintain a strong balance sheet and improved liquidity to unlock future growth opportunities [36] Management's Comments on Operating Environment and Future Outlook - Management noted near-term uncertainty from the U.S. government's fiscal year 2026 budget but remains confident in long-term opportunities [15][17] - The company anticipates a strong second half of the year, driven by the ramp-up of Gen three services and existing contracts [32][47] - Management emphasized the importance of international growth, which is expected to continue outpacing domestic growth [76] Other Important Information - The company successfully raised $185 million in an upsized convertible note offering, enhancing liquidity and financial flexibility [28] - The Eros initiative is expected to address a supply gap in the market starting around 2027, as legacy satellites age out of service [24] Q&A Session Summary Question: When will Gen three satellites be available for general use, and what impact will that have on revenue? - Management indicated that commercial availability in Q4 will lead to incremental revenue growth from existing contracts and new agreements [39][40] Question: What is the current status of U.S. government spending and new orders? - Management acknowledged the effects of the current budget process and anticipated continuing resolution, which have been factored into guidance [41][42] Question: Can you provide insights on the pipeline for new contracts? - Management noted an increase in interest and demand for Gen three services, with a growing pipeline of opportunities [43] Question: How does the image quality and delivery compare to competitors? - Management stated that their offering is highly differentiated in terms of performance and economics compared to competitors [44] Question: What is the significance of the backlog related to Gen three capacity? - A significant portion of the backlog is related to Gen three imagery and analytics, indicating strong demand [46] Question: How is the outlook for U.S. government spending affecting guidance? - Management indicated that while there is uncertainty, they expect demand for Gen three capabilities to remain strong [70] Question: What are the details regarding the Eros constellation? - Management stated that specifics will be shared closer to deployment, but it will leverage compelling economics similar to Gen three [68] Question: How is the international business performing? - Management confirmed that international growth is outpacing domestic growth, creating new opportunities [76]

Financial Performance - BlackSky's first half (1H) revenue for 2025 reached $51.7 million, a 5.2% increase compared to the same period in the prior year[27] - Adjusted imagery and analytics cost of sales for 1H 2025 was $7.2 million, a slight increase of $0.4 million from the prior year period[32] - The company reported an 81% imagery & analytics gross margin in Q2, reflecting healthy economics from recurring imagery and analytics services[32] - Adjusted EBITDA loss for 1H 2025 was $3.4 million, which would have been $2.2 million excluding LeoStella[35] Liquidity and Capital - BlackSky successfully raised $185 million in an upsized convertible note offering, strengthening the balance sheet and increasing liquidity[9, 38] - The company's Q2 2025 cash balance was $94.9 million, a 124% increase year-over-year[41] - Liquidity improved to over $227 million, including net cash raised in July from the convertible debt offering and warrant exercise payments[41] Business Highlights - BlackSky was awarded a facility monitoring delivery order valued at up to $24 million with the NGA Luno A program[9, 10, 11] - The company signed early access agreements for Gen-3 services with multiple international customers[9, 12] - BlackSky launched its second Gen-3 satellite, which began delivering very high resolution (VHR) imagery within 12 hours after launch[9] - The company remains on track to launch 6 Gen-3 satellites this year and have 8 Gen-3 satellites on orbit by early 2026[19] Outlook - BlackSky's full year 2025 guidance includes revenue between $105 million and $130 million, and adjusted EBITDA between $0 million and $10 million[44]

```markdown [Overview of Second Quarter 2025 Results](index=1&type=section&id=BLACKSKY%20REPORTS%20SECOND%20QUARTER%202025%20RESULTS) [Key Highlights](index=1&type=section&id=Second%20Quarter%20Financial%20Highlights) BlackSky reported mixed financial results for Q2 2025, with Imagery & Software services revenue growing to $18.0 million and an improved cost of sales at 19% of revenue. The company strengthened its financial position with a cash balance of $94.9 million and a successful $185 million convertible note offering. Operationally, the company launched its second Gen-3 satellite, secured significant contracts, and is on track to launch six Gen-3 satellites in 2025 Key Financial Metrics | Financial Metric | Value | | :--- | :--- | | Imagery & Software Revenue | $18.0 million | | Imagery & Software Cost of Sales | 19% of revenue | | Backlog | $356 million | | Cash Balance (as of June 30, 2025) | $94.9 million | | Pro Forma Cash (incl. recent transactions) | > $170.0 million | - Operational achievements include the successful launch and commissioning of the second Gen-3 satellite, which delivered imagery within 12 hours. The company is on track to launch a total of six Gen-3 satellites this year[2](index=2&type=chunk)[4](index=4&type=chunk) - Key business developments include a facility monitoring order up to **$24 million** from the NGA, a new multimillion-dollar international customer contract, and multiple early access agreements for Gen-3 services[4](index=4&type=chunk) - The company completed an upsized **$185 million** convertible note offering in July, using the proceeds to pay off existing debt and strengthen its balance sheet[4](index=4&type=chunk)[12](index=12&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Brian E. O'Toole highlighted the successful launch and exceptional performance of the second Gen-3 satellite, which is already providing very-high resolution imagery to customers via early access agreements. He confirmed the plan to launch six Gen-3 satellites in 2025 and noted that the recent $185 million capital raise strengthens the company's balance sheet and validates its long-term business potential - The second Gen-3 satellite is performing exceptionally well and, combined with the first, is now providing very-high resolution imagery and AI-driven analytics to customers[2](index=2&type=chunk) - The company remains on track to launch six Gen-3 satellites in 2025, with general commercial availability expected in the fourth quarter[2](index=2&type=chunk) - A successful capital raise of **$185 million** has strengthened the balance sheet, increased liquidity, and is seen as a validation of the company's long-term potential[2](index=2&type=chunk) [Financial Performance](index=3&type=section&id=Financial%20Performance) [Financial Results (Q2 2025)](index=3&type=section&id=Financial%20Results) In Q2 2025, total revenue decreased to $22.2 million from $24.9 million year-over-year, primarily due to lower professional and engineering services revenue. The company reported a net loss of $41.2 million, a significant increase from a $9.4 million loss in Q2 2024, largely driven by a $24.4 million loss on derivatives. Adjusted EBITDA was a loss of $2.8 million, compared to a $2.1 million profit in the prior-year quarter Q2 2025 Financial Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $22.2M | $24.9M | -10.8% | | Imagery & Software Revenue | $18.0M | $17.5M | +2.9% | | Professional & Engineering Revenue | $4.2M | $7.5M | -44.0% | | Net Loss | ($41.2M) | ($9.4M) | Increased Loss | | Adjusted EBITDA | ($2.8M) | $2.1M | Decreased | - The decline in total revenue was primarily due to a **$3.3 million** decrease in professional and engineering services revenue, attributed to the timing of revenue recognition on long-term, milestone-based contracts[5](index=5&type=chunk) - The year-over-year increase in net loss was mainly caused by a **$24.4 million** loss on derivatives in Q2 2025, compared to a **$5.3 million** gain in Q2 2024[8](index=8&type=chunk) - Cash operating expenses increased by **$3.1 million** year-over-year to **$19.4 million**, primarily due to overhead expenses previously capitalized as satellite assets before the acquisition of LeoStella operations[7](index=7&type=chunk) [Balance Sheet & Capital Expenditures](index=4&type=section&id=Balance%20Sheet%20%26%20Capital%20Expenditures) As of June 30, 2025, BlackSky held $94.9 million in cash and equivalents, bolstered by $35.8 million in net proceeds from an at-the-market equity program. Capital expenditures for the quarter were $10.0 million. Subsequent to the quarter's end, the company raised $185.0 million through a convertible note offering, which was used to pay off existing debt - Cash, cash equivalents, restricted cash, and short-term investments totaled **$94.9 million** as of June 30, 2025[11](index=11&type=chunk) - Capital expenditures for Q2 2025 amounted to **$10.0 million**[11](index=11&type=chunk) - Post-quarter, the company completed a **$185.0 million** offering of an **8.25%** convertible note due 2033, using a portion of the proceeds to pay off its senior secured note and commercial bank line[12](index=12&type=chunk) [2025 Outlook](index=4&type=section&id=2025%20Outlook) The company has adjusted its full-year 2025 outlook due to near-term volatility from the U.S. government budget process and the timing of some international contracts. Revenue guidance is now set between $105 million and $130 million, with Adjusted EBITDA expected to be between break-even and $10 million. The capital expenditure forecast remains unchanged 2025 Full-Year Guidance | 2025 Full-Year Guidance | Range | | :--- | :--- | | Revenue | $105M - $130M | | Adjusted EBITDA | $0M - $10M | | Capital Expenditures | $60M - $70M (Unchanged) | - The guidance adjustment is attributed to near-term volatility from the U.S. government budget process and timing related to some international contracts[13](index=13&type=chunk) [Financial Statements and Reconciliations](index=7&type=section&id=Financial%20Statements%20and%20Reconciliations) [Condensed Consolidated Statements of Operations](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20LOSS) This section provides the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025, and 2024, detailing revenues, costs, operating loss, and net loss Condensed Consolidated Statements of Operations | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total revenue** | **$22,199** | **$24,938** | | Total costs and expenses | $36,139 | $36,659 | | Operating loss | ($13,940) | ($11,721) | | (Loss) gain on derivatives | ($24,435) | $5,273 | | **Net loss** | **($41,239)** | **($9,397)** | | Net loss per share | ($1.27) | ($0.52) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) This section presents the company's unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024, outlining assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | **$138,796** | **$106,736** | | **Total assets** | **$310,798** | **$254,146** | | Total current liabilities | $37,400 | $26,022 | | **Total liabilities** | **$224,238** | **$160,157** | | **Total stockholders' equity** | **$86,560** | **$93,989** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This section details the unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2025, and 2024, showing cash flows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $19,965 | ($5,602) | | Net cash used in investing activities | ($49,821) | ($23,048) | | Net cash provided by financing activities | $39,186 | $21,865 | | **Net increase (decrease) in cash** | **$9,330** | **($6,785)** | | **Cash, cash equivalents, and restricted cash – end of period** | **$23,708** | **$26,649** | [Reconciliation of Net Loss to Adjusted EBITDA](index=10&type=section&id=RECONCILIATION%20OF%20NET%20LOSS%20TO%20ADJUSTED%20EBITDA) This table provides a reconciliation of the GAAP measure Net Loss to the non-GAAP measure Adjusted EBITDA for the three and six months ended June 30, 2025, and 2024 Reconciliation of Net Loss to Adjusted EBITDA | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net loss | ($41,239) | ($9,397) | | Adjustments (Interest, Taxes, D&A, etc.) | $38,422 | $7,252 | | **Adjusted EBITDA** | **($2,817)** | **$2,145** | [Reconciliation of Operating Expenses to Cash Operating Expenses](index=11&type=section&id=RECONCILIATION%20OF%20OPERATING%20EXPENSES%20TO%20CASH%20OPERATING%20EXPENSES) This table reconciles the GAAP measure Operating Expenses to the non-GAAP measure Cash Operating Expenses for the three and six months ended June 30, 2025, and 2024 Reconciliation of Operating Expenses to Cash Operating Expenses | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Operating expenses | $29,892 | $29,777 | | Stock-based compensation | ($3,288) | ($2,222) | | Depreciation and amortization | ($7,208) | ($11,277) | | **Cash operating expenses** | **$19,396** | **$16,278** | ```

I've found the coverage on BlackSky ( BKSY ) to be extremely limited, especially for how much of the defense space this stock is going to take on. In the past month alone, BlackSky shares are I'm a retired Wall Street PM specializing in TMT; since kickstarting my career, I've spent over two decades in the market navigating the technology landscape, focusing on risk mitigation through the dot com bubble, credit default of '08, and, more recently, with the AI boom. In one word, what I'd like my service to rev ...