BlackSky (NYSE: BKSY) Q2 2026: Revenue Jumps 50% YoY, EPS Beats Estimate by 20%

BlackSky Technology (NYSE: BKSY) posted second-quarter 2026 revenue of $33.3 million, a 50% year-over-year increase from $22.2 million in Q2 2025, as customer adoption of its Gen-3 satellite intelligence services accelerated. GAAP EPS came in at -$0.32, beating the consensus estimate of -$0.40 by 19.2%.

Q2 2026 Financial Results

• Total revenue: $33.3 million, up 50% from $22.2 million in Q2 2025, driven by record space-based intelligence and AI services revenue.
• Space-based intelligence and AI services revenue: $25 million, a record quarter, also up 50% sequentially from Q1 2026.
• Adjusted EBITDA: $4.7 million, a 14.2% margin on $33.3 million in revenue, up $7.5 million year-over-year.
• GAAP net loss: $20.8 million, narrowed from a $41.2 million net loss in Q2 2025; the year-over-year improvement was primarily attributable to changes in gains and losses on derivative instruments tied to equity warrants measured at fair value.
• Cash and cash equivalents, restricted cash, and short-term investments: $244.1 million as of June 30, 2026, including $150 million raised during the quarter via 3.6 million shares issued under the company's at-the-market equity program.

What Drove the Results

GAAP EPS of -$0.32 beat the -$0.40 consensus by 19.2%, and total revenue of $33.3 million exceeded the prior year by 50%. The upside was concentrated in high-margin space-based intelligence and AI services, which reached a record $25 million. Cash operating expenses, which exclude non-cash stock-based compensation of $4.1 million and depreciation and amortization of $8.0 million, came in at $20.0 million, essentially flat versus $19.4 million in Q2 2025, demonstrating meaningful operating leverage as revenue scaled.

The cost of sales as a percentage of revenue improved modestly to 27% from 28% in Q2 2025. The year-over-year improvement in GAAP net loss from -$41.2 million to -$20.8 million was primarily driven by changes in the fair value of derivative liabilities, including equity warrants, rather than operational income alone. Capital expenditures for the quarter were $15.4 million.

On the contract front, BlackSky was awarded an eight-figure contract with the National Reconnaissance Office to accelerate development of a high-performance digital mapping system, converted an international pilot into a seven-figure subscription contract for Gen-3 and Gen-2 imagery services, and secured seven-figure renewal awards supporting the National Geospatial-Intelligence Agency's Luno location and facility monitoring program. The company also won multiple U.S. research and development contracts to deploy Gen-3 AI solutions for space-based tactical intelligence operations.

Wall Street View

BlackSky reaffirmed its full-year 2026 outlook, targeting revenue between $130 million and $150 million, Adjusted EBITDA between $12 million and $24 million, and capital expenditures between $50 million and $60 million. The company noted that its next two Gen-3 satellites are expected to launch in the third quarter, a development that could further expand imagery capacity and subscription revenue. Analyst consensus as of August 1, 2026 stood at a broadly constructive level across the coverage universe.

Investor Takeaway

The Q2 results illustrate that BlackSky's shift toward high-margin, recurring subscription services is translating into operating leverage: revenue grew 50% year-over-year while cash operating expenses grew less than 3%, pushing Adjusted EBITDA positive at a 14.2% margin. The $244.1 million cash balance, bolstered by the $150 million equity raise, provides a substantial runway to fund the full-year capex guidance range of $50 million to $60 million and support additional satellite launches without near-term financing pressure. Investors will be watching whether the two forthcoming Gen-3 satellite launches in Q3 sustain the sequential revenue momentum that drove the record space-based intelligence figure this quarter.