Stonegate Capital Partners Updates Coverage on BlackSky Technology, Inc. (BKSY) 4Q25

Core Insights - BlackSky Technology, Inc. (NYSE: BKSY) reported revenue of $35.2 million, adjusted EBITDA of $8.8 million, and EPS of ($0.02), which fell short of consensus estimates [1][7] Financial Performance - Revenue from Imagery and Software Analytical Services decreased to $14.5 million, representing a 17% year-over-year decline, attributed to EOCL-related budget uncertainty [1] - Mission Solutions revenue increased significantly to $9.5 million from $1.0 million last year, driven by a new international Gen-3 contract and milestone deliveries [1] - Professional and Engineering Services revenue slightly decreased to $11.2 million from $11.9 million year-over-year due to project timing [1] - Adjusted EBITDA rose to $8.8 million from $7.4 million, supported by higher revenue and cost discipline, while gross margin improved to 72.6% from 65.3% in the previous year [1][7] Backlog and Future Outlook - The company secured over $240 million in new awards, increasing its backlog to $345 million, primarily from international Gen-3 contracts [7] - FY26 guidance indicates ongoing investment in scaling capacity [7]