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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 $28.6 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; litigation, settlements, and related costs; severance; 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 $70,062 
Mission solutions9,462 980 21,214 5,930 
Advanced technology programs11,229 11,906 20,245 26,101 
Total revenue35,214 30,370 106,575 102,093 
Costs and expenses
Space-based intelligence & AI services costs, excluding depreciation and amortization4,149 3,348 16,592 13,907 
Mission solutions costs, excluding depreciation and amortization3,482 817 10,941 4,952 
Advanced technology programs costs, excluding depreciation and amortization2,010 2,702 7,770 8,573 
Selling, general and administrative21,553 19,078 87,397 74,069 
Research and development141 559 433 1,344 
Depreciation and amortization8,035 9,950 30,343 43,536 
Total costs and expenses39,370 36,454 153,476 146,381 
Operating loss(4,156)(6,084)(46,901)(44,288)
Gain (loss) on derivatives6,136 (11,408)(8,012)(2,815)
Income on equity method investments— 879 — 879 
Loss on debt extinguishment— — (4,140)— 
Interest income1,230 573 3,804 1,560 
Interest expense(4,057)(3,382)(14,946)(12,187)
Other income, net— 22 60 3 
Loss before income taxes(847)(19,400)(70,135)(56,848)
Income tax expense(21)(20)(125)(370)
Net loss(868)(19,420)(70,260)(57,218)
Other comprehensive income— — — — 
Total comprehensive loss$(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 diluted35,752 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 cash1,1031,322
Short-term investments82,00639,406
Accounts receivable, net of allowance of $50 and $45, respectively34,13914,701
Contract assets28,59527,852
Inventories6,1786,043
Prepaid expenses and other current assets12,3294,356
Total current assets206,795106,736
Property and equipment - net79,03745,613
Operating lease right of use assets - net3,4184,029
Goodwill10,27910,260
Intangible assets - net4,4225,446
Satellite work in process80,65180,601
Other assets1,644 1,461 
Total assets$386,246 $254,146 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued liabilities$14,945 $20,419 
Contract liabilities - current20,5182,183
Debt - current portion7,9371,927
Other current liabilities16,0611,493
Total current liabilities59,46126,022
Operating lease liabilities7,5798,048
Derivative liabilities20,64817,964
Deferred revenue - long-term9,948—
Long-term debt - net of current portion193,180105,736
Other liabilities5552,387
Total liabilities291,371160,157
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.
43
Additional paid-in capital821,319750,174
Accumulated deficit(726,448)(656,188)
Total stockholders’ equity94,87593,989
Total liabilities and stockholders’ equity$386,246 $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 expense30,343 43,536 
Transfer of satellite work in process to engineering service costs8,542 334 
Operating lease right of use assets amortization611 583 
Loss on debt extinguishment4,140 — 
Stock-based compensation expense14,232 11,169 
Amortization of debt issuance costs and non-cash interest expense3,812 9,207 
Paid in kind interest at time of debt extinguishment(29,079)— 
Loss on derivatives8,012 2,815 
Non-cash interest income(2,565)(1,074)
Income on equity method investment— (879)
Other234 320 
Changes in operating assets and liabilities:
Accounts receivable(19,469)(7,775)
Contract assets - current and long-term(313)(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 liabilities13,059 (356)
Contract liabilities - current and long-term28,159 (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 investments87,750 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 debt185,000 20,000 
Proceeds from equity issuances, net of equity issuance costs40,829 47,009 
Proceeds from warrants exercised10,753 — 
Proceeds from options exercised and ESPP shares purchased2,009 308 
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 activities144,076 55,658 
Net increase (decrease) in cash, cash equivalents, and restricted cash29,170 (19,056)
Cash, cash equivalents, and restricted cash – beginning of year14,378 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(1)
$(868)$(19,420)$(70,260)$(57,218)
Interest income(1,230)(573)(3,804)(1,560)
Interest expense4,057 3,382 14,946 12,187 
Income tax expense21 20 125 370 
Depreciation and amortization8,035 9,950 30,343 43,536 
Stock-based compensation expense4,228 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 costs301 284 1,556 512 
Litigation, settlements, and related costs(55)218 645 355 
Severance191 — 600 219 
Impairment, obsolescence, and asset disposals274 60 364 131 
Income on equity method investment— (879)— (879)
Adjusted EBITDA$8,818 $7,375 $899 $11,637 


(1) 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.



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