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BLACKSKY PRELIMINARY FOURTH QUARTER AND FULL YEAR 2025 RESULTS

Full Year Financial Highlights:
•Record total revenue of $107 million
•Backlog of $345 million, up 32% from prior year driven by $240 million in contract bookings
•Cash balance of $126 million as of December 31, 2025


Financial Results
Revenues
Total revenue for the fourth quarter of 2025 was $35.2 million, up $4.8 million, or 16% from the fourth quarter of 2024. The year-over-year increase was primarily driven by a new contract for the delivery of a Gen-3 satellite and other new contracts.

For the full year 2025, total revenue was $106.6 million, up $4.5 million from 2024.

Cost of Sales(1)
Total cost of sales as a percentage of revenue was 27% for the fourth quarter of 2025, compared to 23% for the fourth quarter of 2024. The increase in cost of sales as a percentage of revenue was primarily due to growth in the mission solutions business.

For the full year 2025, cost of sales as a percentage of revenue was 33%, compared to 27% in 2024.

Operating Expenses
Operating expenses for the fourth quarter of 2025 were $29.7 million, which included $4.0 million of non-cash stock-based compensation expense and $8.0 million in depreciation and amortization expenses. Operating expenses for the fourth quarter of 2024 were $29.6 million, which included $2.8 million in non-cash stock-based compensation expense and $10.0 million in depreciation and amortization expenses. Excluding the non-cash stock-based compensation and depreciation and amortization expenses from both years, cash operating expenses(2) for the fourth quarter of 2025 were $17.7 million, compared to cash operating expenses of $16.8 million for the fourth quarter of 2024.



For the full year 2025, operating expenses were $118.2 million, which included $13.6 million of non-cash stock-based compensation expense and $30.3 million in depreciation and amortization expenses. For the full year 2024, operating expenses were $118.9 million, which included $10.5 million of non-cash stock-based compensation expense and $43.5 million in depreciation and amortization expenses. Excluding the non-cash stock-based compensation and depreciation and amortization expenses from both years, cash operating expenses(2) in 2025 were $74.3 million, compared to cash operating expenses of $64.9 million in 2024.

Net Loss(3)
Net loss for the fourth quarter of 2025 was $0.9 million, compared to a net loss of $19.4 million for the fourth quarter of 2024. The year-over-year improvement in net loss of $18.6 million was primarily due to changes in the gain/(loss) on derivatives, which are driven by fluctuations in the Company’s equity warrants and other equity instruments that are measured at fair value and driven by the Company’s common stock price.

For the full year 2025, net loss was $70.3 million, compared to $57.2 million in 2024.

Adjusted EBITDA(2)
Adjusted EBITDA for the fourth quarter of 2025 was $8.8 million, compared to adjusted EBITDA of $7.4 million for the fourth quarter of 2024. The year-over-year increase was primarily driven by higher revenues.

For the full year 2025, adjusted EBITDA was $0.9 million, compared to $11.6 million in 2024.

Balance Sheet & Capital Expenditures
As of December 31, 2025, cash and cash equivalents, restricted cash, and short-term investments totaled $125.6 million. During the quarter, the Company achieved major milestones across multiple contracts that triggered invoicing of prior unbilled receivables, which reduced unbilled contract assets from $44.0 million at the end of the third quarter of 2025 to approximately $26.8 million. Capital expenditures for the fourth quarter of 2025 were $12.7 million, bringing the full year total spend to $46.6 million.
(1) Cost of sales is defined as space-based intelligence & AI services costs, excluding depreciation and amortization, mission solutions costs, excluding depreciation and amortization, and advanced technology programs costs, excluding depreciation and amortization.
(2) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below and reconciliation table at the end of this press release.
(3) This represents our current estimate of net loss for the period ending December 31, 2025, which is subject to the completion of our financial closing procedures and adjustments that may result from the completion of the audit of our consolidated financial statements. As a result, this net loss estimate may differ from the actual net loss reported in our consolidated financial statements when they are completed and publicly disclosed in our Annual Report on Form 10-K.





Non-GAAP Financial Measures
Adjusted EBITDA is defined as net income or loss attributable to BlackSky before interest income, interest expense, income taxes, depreciation and amortization, as well as significant non-cash and/or non-recurring expenses as our management believes these items are not as useful in evaluating the Company’s core operating performance. These items include, but are not limited to, stock-based compensation expense; unrealized (gain) loss on certain warrants/shares classified as derivative liabilities; loss on debt extinguishment; non-recurring transaction costs; severance; litigation, settlements, and related costs; and impairment, obsolescence, and asset disposals. Cash operating expenses is defined as operating expenses less stock-based compensation expense for selling, general, and administrative costs, and depreciation and amortization expense. The Company believes evaluating cash operating expenses is useful to manage expenses as it excludes non-cash items that may obscure the underlying business performance.

Adjusted EBITDA and cash operating expenses are non-GAAP financial performance measures. These measures should not be considered in isolation or as an alternative to measures determined in accordance with GAAP. Please refer to the schedule herein and our filings with the U.S. Securities and Exchange Commission (the “SEC”) for a reconciliation of adjusted EBITDA to net loss, the most comparable measure reported in accordance with GAAP, and for a discussion of the presentation, comparability, and use of adjusted EBITDA. Please refer to the schedule herein for a reconciliation of cash operating expenses to operating expenses, the most comparable measure reported in accordance with GAAP, and this press release for a discussion of the use of cash operating expenses.

Forward-Looking Statements
Certain statements and other information included in these preliminary results constitute forward-looking statements under applicable securities laws. Words such as "may", "will", "could", "should", "would", "plan", "potential", "intend", "anticipate", "believe", "estimate", "future", "opportunity", "will likely result", or "expect" and other words, terms, and phrases of similar meaning are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. All statements, other than statements of historical fact, contained in these preliminary results, including statements as to our preliminary results, our anticipated liquidity and cash flows, our anticipated Gen-3 satellite launch timing, and our expectations related to future profitability on an adjusted basis, are forward-looking statements.

Forward-looking statements are subject to various risks and uncertainties, which could cause actual results to differ materially from the anticipated results or expectations expressed in these preliminary results. As a result, although BlackSky's management believes that the expectations and assumptions on which such


forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because BlackSky can give no assurance that they will prove to be correct. The risks that could cause actual results to differ materially from current expectations include, but are not limited to, factors such as long and unpredictable sales cycles, customer demand, U.S. government budget uncertainties, and our ability to estimate resources for fixed-price contracts, expenses, and other operational and liquidity needs, as well as the risk factors discussed in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q, and other disclosures about BlackSky and its business included in BlackSky's disclosure materials filed from time to time with the SEC, which are available on the SEC's website at www.sec.gov or on BlackSky's Investor Relations website at ir.blacksky.com.

The forward-looking statements contained in these preliminary results are expressly qualified in their entirety by the foregoing cautionary statements. All such forward-looking statements are based upon data available as of the date of this press release and speak only as of such date. BlackSky disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information or future events, except as may be required under applicable securities law.


BLACKSKY TECHNOLOGY INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
(in thousands, except per share amounts)

Three Months Ended December 31,Years Ended December 31,
2025202420252024
Revenue
Space-based intelligence & AI services
$    14,523    

$    17,484    
$    65,116    

$    70,062    
Mission solutions
    9,462    

    980    
    21,214    

    5,930    
Advanced technology programs
    11,229    

    11,906    
    20,245    

    26,101    
Total revenue
    35,214    
    30,370    
    106,575    
    102,093    
Costs and expenses
Space-based intelligence & AI services costs, excluding depreciation and amortization4,149 

    3,348    
16,592 

    13,907    
Mission solutions costs, excluding depreciation and amortization
    3,482    

    817    
    10,941    

    4,952    
Advanced technology programs costs, excluding depreciation and amortization2,010 

    2,702    
7,770 

    8,573    
Selling, general and administrative
    21,553    
    19,078    
    87,397    
    74,069    
Research and development
    141    
    559    
    433    
    1,344    
Depreciation and amortization
    8,035    
    9,950    
    30,343    
    43,536    
Total costs and expenses
    39,370    
    36,454    
    153,476    
    146,381    
Operating loss
    (4,156)
    (6,084)
    (46,901)
    (44,288)
Gain (loss) on derivatives
    6,136    
    (11,408)
    (8,012)
    (2,815)
Income on equity method investments
    —    
    879    
    —    
    879    
Loss on debt extinguishment
    —    
    —    
    (4,140)
    —    
Interest income
    1,230    
    573    
    3,804    
    1,560    
Interest expense
    (4,057)
    (3,382)
    (14,946)
    (12,187)
Other income, net
    —    
    22    
    60    
    3    
Loss before income taxes
    (847)
    (19,400)
    (70,135)
    (56,848)
Income tax expense
    (21)
    (20)
    (125)
    (370)
Net loss
    (868)
    (19,420)
    (70,260)
    (57,218)
Other comprehensive income
    —    
    —    
    —    
    —    
Total comprehensive loss
$    (868)
$    (19,420)
$    (70,260)
$    (57,218)
Basic and diluted loss per share of common stock:
Net loss per share of common stock
$    (0.02)
$    (0.64)
$    (2.09)
$    (2.67)
Weighted average common shares outstanding - basic and diluted
    35,752    
    30,525    
    33,576    
    21,443    



BLACKSKY TECHNOLOGY INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands, except par value)
December 31, 2025December 31, 2024
Assets
Current assets:
Cash and cash equivalents
$    42,445    
$    13,056    
Restricted cash1,103 1,322 
Short-term investments82,006 39,406 
Accounts receivable, net of allowance of $50 and $45, respectively37,648 14,701 
Contract assets26,125 27,852 
Inventories6,178 6,043 
Prepaid expenses and other current assets12,329 4,356 
Total current assets207,834 106,736 
Property and equipment - net79,037 45,613 
Operating lease right of use assets - net3,418 4,029 
Goodwill10,279 10,260 
Intangible assets - net4,422 5,446 
Satellite work in process80,651 80,601 
Other assets
    1,644    
    1,461    
Total assets
$    387,285    
$    254,146    
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued liabilities
$    14,945    
$    20,419    
Contract liabilities - current21,557 2,183 
Debt - current portion7,937 1,927 
Other current liabilities16,061 1,493 
Total current liabilities60,500 26,022 
Operating lease liabilities7,579 8,048 
Derivative liabilities20,648 17,964 
Deferred revenue - long-term9,948 — 
Long-term debt - net of current portion193,180 105,736 
Other liabilities555 2,387 
Total liabilities292,410 160,157 
Stockholders’ equity:
Class A common stock, $0.0001 par value-authorized, 300,000 shares; issued, 36,227 and 30,960 shares; outstanding, 35,930 shares and 30,663 shares as of December 31, 2025 and 2024, respectively.
4 3 
Additional paid-in capital821,319 750,174 
Accumulated deficit(726,448)(656,188)
Total stockholders’ equity94,875 93,989 
Total liabilities and stockholders’ equity
$    387,285    
$    254,146    


BLACKSKY TECHNOLOGY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Years Ended December 31,
20252024
Cash flows from operating activities:
Net loss
$    (70,260)
$    (57,218)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense
    30,343    
    43,536    
Transfer of satellite work in process to engineering service costs
    8,542    
    334    
Operating lease right of use assets amortization
    611    
    583    
Loss on debt extinguishment
    4,140    
    —    
Stock-based compensation expense
    14,232    
    11,169    
Amortization of debt issuance costs and non-cash interest expense
    3,812    
    9,207    
Paid in kind interest at time of debt extinguishment
    (29,079)
    —    
Loss on derivatives
    8,012    
    2,815    
Non-cash interest income
    (2,565)
    (1,074)
Income on equity method investment
    —    
    (879)
Other
    234    
    320    
Changes in operating assets and liabilities:
Accounts receivable
    (22,979)
    (7,775)
Contract assets - current and long-term
    2,157    
    (4,989)
Prepaid expenses and other current assets
    (8,188)
    556    
Other assets
    —    
    2,428    
Accounts payable and accrued liabilities
    (9,385)
    (4,080)
Other current liabilities
    13,059    
    (356)
Contract liabilities - current and long-term
    29,199    
    (978)
Other liabilities
    (196)
    17    
Net cash used in operating activities
    (28,311)
    (6,384)
Cash flows from investing activities:
Purchase of property and equipment
    (16,212)
    (15,678)
Satellite work in process
    (30,348)
    (34,558)
Purchases of short-term investments
    (127,785)
    (52,860)
Proceeds from maturities of short-term investments
    87,750    
    34,225    
Cash received from business acquisition
    —    
    541    
Net cash used in investing activities
    (86,595)
    (68,330)
Cash flows from financing activities:
Proceeds from issuance of debt
    185,000    
    20,000    
Proceeds from equity issuances, net of equity issuance costs
    40,829    
    47,009    
Proceeds from warrants exercised
    10,753    
    —    
Proceeds from options exercised and ESPP shares purchased
    2,009    
    308    
Repayments of debt
    (84,502)
    (10,000)
Payments for debt issuance costs
    (7,304)
    (632)
Withholding tax payments on vesting of restricted stock units
    (2,709)
    (967)
Payments for deferred offering costs
    —    
    (60)
Net cash provided by financing activities
    144,076    
    55,658    
Net increase (decrease) in cash, cash equivalents, and restricted cash
    29,170    
    (19,056)
Cash, cash equivalents, and restricted cash – beginning of year
    14,378    
    33,434    
Cash, cash equivalents, and restricted cash – end of year
$    43,548    
$    14,378    


BLACKSKY TECHNOLOGY INC.
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(unaudited)
(in thousands)

Three Months Ended December 31,Years Ended December 31,
2025202420252024
Net loss
$    (868)
$    (19,420)
$    (70,260)
$    (57,218)
Interest income
    (1,230)
    (573)
    (3,804)
    (1,560)
Interest expense
    4,057    
    3,382    
    14,946    
    12,187    
Income tax expense
    21    
    20    
    125    
    370    
Depreciation and amortization
    8,035    
    9,950    
    30,343    
    43,536    
Stock-based compensation expense
    4,228    
    2,925    
    14,232    
    11,169    
(Gain) loss on derivatives
    (6,136)
    11,408    
    8,012    
    2,815    
Loss on debt extinguishment
    —    
    —    
    4,140    
    —    
Non-recurring transaction costs
    301    
    284    
    1,556    
    512    
Litigation, settlements, and related costs
    (55)
    218    
    645    
    355    
Severance
    191    
    —    
    600    
    219    
Impairment, obsolescence, and asset disposals
    274    
    60    
    364    
    131    
Income on equity method investment
    —    
    (879)
    —    
    (879)
Adjusted EBITDA
$    8,818    
$    7,375    
$    899    
$    11,637    




BLACKSKY TECHNOLOGY INC.
RECONCILIATION OF OPERATING EXPENSES TO CASH OPERATING EXPENSES
(unaudited)
(in thousands)

Three Months Ended December 31,Years Ended December 31,
2025202420252024
Operating expenses
$    29,729    
$    29,587    
$    118,173    
$    118,949    
Stock-based compensation for selling, general and administrative costs
    (4,037)
    (2,779)
    (13,564)
    (10,526)
Depreciation and amortization
    (8,035)
    (9,950)
    (30,343)
    (43,536)
Cash operating expenses
$    17,657    
$    16,858    
$    74,266    
$    64,887