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.

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]