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The call was broadly positive: management reported a clear operational inflection with Gen-3 fully operational, notable contract wins (including customer-funded R&D), raised revenue and adjusted EBITDA guidance, strong subscription economics (~80% gross margins) and a healthy cash/liquidity position. Lowlights center on the current modest Q1 revenue base, a Q1 adjusted EBITDA loss (-$5.1M), dependence on converting pilot programs (timing uncertainty) and some U.S. government funding visibility risk. On balance the positive operational milestones, guidance raises and strong margins outweigh the near-term challenges and execution/timing risks.
BlackSky raised 2026 guidance, increasing revenue to $130–$150 million (up from $120–$145M) — a >30% growth rate at the midpoint vs. 2025 — and raising adjusted EBITDA to $12–$24 million (from $6–$18M), implying a ~13% adjusted EBITDA margin at the midpoint; they reaffirmed capital expenditures of $50–$60 million. Supporting metrics: Q1 revenue was $20.8 million with a Q1 adjusted EBITDA loss of $5.1 million, cash CapEx of $15.8 million for the quarter, cash/restricted/short‑term investments of $117.5 million and total liquidity >$195 million, year‑to‑date contract awards of up to $160 million, backlog of ~$351 million as of March 31 (rising to ~$380M including early‑April wins) with about $90 million expected to be recognized in 2026, and a plan to reach a >$100 million annual run rate for space‑based intelligence & AI services (projected >50% growth in 2026) with ~80% gross margins; operational progress (4 Gen‑3 satellites live, target ≥8 this year) and delivery timelines (<40 minutes including AI processing) underpin the outlook.
Company announced up to $160 million in contract awards year-to-date, including over $60 million in new Gen-3 awards and a major customer-funded AFRL contract worth up to $99 million. Backlog was $351 million as of March 31 (about $380 million including early April deals), with roughly $90 million expected to be recognized in 2026.
Gen-3 reached an inflection: 4 Gen-3 satellites are operational (fourth launched in March and commissioned in under a week), unlocking very-high-resolution 35-centimeter imaging. Management is on track to reach at least 8 Gen-3s on orbit this year with the next unit ready to ship.
Q1 revenue was $20.8 million. Management raised full-year revenue guidance from $120–$145 million to $130–$150 million (midpoint implying >30% growth vs. 2025). Space-based intelligence and AI services are expected to grow over 50% in 2026 and achieve a projected annual run rate above $100 million.
Subscription-based Gen-3 services are forecasted to deliver gross margins of around 80%, driving operating leverage. Adjusted EBITDA guidance was increased from $6–$18 million to $12–$24 million, with a midpoint implying a ~13% adjusted EBITDA margin.
Proprietary AI is operational and embedded in customer workflows: imagery delivery timelines consistently under 40 minutes (including AI processing), millions of AI detections (cited >5 million objects classified over multi-day operations), high revisit rates and automated Spectra platform accelerating responsiveness.
Ended Q1 with $117.5 million in cash, restricted cash and short-term investments and total liquidity over $195 million. Cash capital expenditures were $15.8 million in the quarter and full-year CapEx guidance was reaffirmed at $50–$60 million, indicating capital flexibility to fund growth.
Progress on advanced programs (AROS wide-area system, on-orbit processing, optical inter-satellite links) and increased interest in Mission Solutions/sovereign satellite offerings. Customer-funded R&D deals (e.g., AFRL) help offset internal R&D and validate strategic tech roadmap.
Ladies and gentlemen, thank you for joining us, and welcome to the BlackSky Technology First Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Aly Bonilla, Vice President of Investor Relations. Aly, please go ahead.
Good morning and thank you for joining us. Today, I'm joined by our Chief Executive Officer, Brian O'Toole; and our Chief Financial Officer, Henry Dubois. On today's call, Brian will provide some highlights on the quarter and give a strategic update on the business. Henry will then review the company's first quarter financial results and updated outlook for 2026. Following our prepared remarks, we will open the line for your questions. A replay of this conference call will be available later today. Information to access the replay can be found in today's press release. Additionally, a webcast of this earnings call will be available in the Investor Relations section of our website at www.blacksky.com.
In conjunction with today's call, we have posted a quarterly earnings presentation on the Investor Relations website that you may use to follow along with our prepared remarks. Before we begin, let me remind you that we'll make forward-looking statements during today's conference call, including statements about our plans, objectives and future outlook. Actual results may differ materially as these statements are based on our current expectations as of today and are subject to risks and uncertainties, including those stated in our Form 10-K. BlackSky assumes no obligation to update forward-looking statements, except as may be...