Stonegate Capital Partners Updates Coverage on BlackSky Technology, Inc. Highlighting Growth and Challenges

Stonegate Capital Partners has provided an updated coverage report on BlackSky Technology, Inc. (NYSE: BKSY), detailing the company's financial performance, contract wins, and technological advancements. BlackSky reported revenues of $22.2M, adjusted EBITDA of ($2.8)M, and EPS of ($1.27) for the quarter. While imagery and software analytical services revenue saw a 2.9% year-over-year increase to $18.0M, professional and engineering services revenue declined to $4.2M from $7.5M in the same quarter last year, attributed to timing differences in milestone-based contract recognition.

The company's adjusted EBITDA loss of ($2.8M) contrasts with a $2.1M profit in the prior year, reflecting lower professional services revenue and ongoing investments in Gen-3 and AROS initiatives. Despite these challenges, BlackSky secured over $35.0M in new contracts during the quarter, expanding its total backlog to $356.0M, with approximately 85% of this backlog coming from international customers. Notable contracts include a $24.0M NGA Luno A monitoring award and a multi-year Gen-2/Gen-3 contract with a new international defense customer.

Technologically, BlackSky successfully launched its second Gen-3 satellite, which began delivering very-high resolution imagery within 12 hours of launch. The company is on track to deploy six Gen-3 satellites in 2025 and eight by early 2026, with commercial availability expected in the fourth quarter of 2025. Financially, BlackSky strengthened its balance sheet with a $185.0M upsized convertible note offering, reducing debt servicing costs and supporting further investment in Gen-3 and the AROS constellation.

BlackSky reaffirmed its FY25 revenue guidance of $105M–$130M and adjusted EBITDA of breakeven to $10M, despite short-term U.S. government budget volatility. Stonegate Capital Partners' valuation analysis suggests a mid-point valuation of $27.26 based on a DCF model and $25.58 based on EV/EBITDA comp analysis, indicating potential growth prospects for the company. For more details on BlackSky's financials and strategic initiatives, visit https://www.blacksky.com.