Stonegate Capital Partners has updated its coverage on BlackSky Technology, Inc. (NYSE: BKSY), following the company's fourth-quarter 2025 earnings release. The report highlights a quarter of mixed results, with revenue falling short of estimates but adjusted EBITDA and gross margin showing improvement.
BlackSky reported revenue of $35.2 million, compared to Stonegate's estimate of $41.1 million and consensus of $36.1 million. Adjusted EBITDA came in at $8.8 million, beating Stonegate's $11.1 million estimate but exceeding the consensus of $7.2 million. Earnings per share (EPS) were ($0.02), outperforming both Stonegate's estimate of ($0.18) and consensus of ($0.28).
Revenue breakdown revealed challenges in the Imagery and Software Analytical Services segment, which declined to $14.5 million, a 17% year-over-year drop. Management remains cautious due to EOCL-related budget uncertainty affecting this segment. In contrast, Mission Solutions revenue surged to $9.5 million from $1.0 million in the prior year, driven by a new international Gen-3 contract and milestone deliveries. Professional and Engineering Services revenue slipped to $11.2 million from $11.9 million year-over-year due to project timing.
Adjusted EBITDA increased to $8.8 million from $7.4 million in the same quarter last year, supported by higher revenue and cost discipline. Gross margin improved significantly to 72.6% from 65.3% in the third quarter of 2025, reflecting an improved revenue mix and effective cost control.
A key takeaway from the quarter was the strong order flow, with over $240 million in new awards lifting backlog to $345 million, predominantly from international Gen-3 contracts. The company's FY26 guidance indicates continued investment in scaling capacity to meet growing demand. This strategic focus on international expansion and capacity building positions BlackSky for future growth despite near-term headwinds in certain segments.
For more details, view the full announcement here.
