BlackSky Technology Inc. Reports Q2 2025 Financial Results with $22.2M Revenue and $41.2M Net Loss

BlackSky Technology Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $22.2 million, a decrease of 11% compared to $24.9 million in the same period last year. The decline was primarily driven by a significant drop in professional and engineering services revenue, which fell by 43.5% to $4.2 million from $7.5 million. In contrast, revenue from imagery and software analytical services increased slightly by 2.9% to $18.0 million. For the first half of 2025, total revenue rose to $51.7 million, up 5.2% from $49.2 million in the prior year.

The company's net loss for the second quarter was $41.2 million, compared to a loss of $9.4 million in the same quarter of 2024. This substantial increase in loss was attributed to a significant loss on derivatives amounting to $24.4 million, contrasting with a gain of $5.3 million in the previous year. The operating loss for the quarter was $13.9 million, slightly higher than the $11.7 million loss reported in the second quarter of 2024. The basic and diluted loss per share for the quarter was $1.27, compared to $0.52 in the prior year.

In terms of strategic developments, BlackSky completed the acquisition of LeoStella LLC in November 2024, which is expected to enhance its control over satellite production and supply chain operations. The company also issued $185 million in convertible notes in July 2025, which will mature in 2033. This financing is intended to support ongoing operations and future growth initiatives. Additionally, BlackSky raised $42.5 million through its at-the-market offering program during the first half of 2025.

Operationally, BlackSky reported a backlog of $356.3 million as of June 30, 2025, indicating a strong pipeline of future revenue. The company’s customer base remains heavily weighted towards U.S. federal and international government agencies, with 61% of second-quarter revenue derived from these customers. The company also noted an increase in cash and cash equivalents, which rose to $22.6 million from $13.1 million at the end of 2024, alongside short-term investments of $71.2 million.

Looking ahead, BlackSky anticipates continued growth in its imagery and software analytical services, particularly with the launch of its next-generation satellites. The company aims to expand its customer base both domestically and internationally, leveraging its advanced satellite technology and analytics capabilities. However, the company also acknowledged the challenges posed by market conditions and the need for ongoing investment in technology and infrastructure to support its growth objectives.