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 mixed quarter where revenue fell short of expectations but profitability metrics showed improvement. BlackSky reported revenue of $35.2 million, adjusted EBITDA of $8.8 million, and earnings per share of ($0.02). These figures compared to Stonegate's estimates of $41.1 million, $11.1 million, and ($0.18), respectively, and consensus estimates of $36.1 million, $7.2 million, and ($0.28).
The Imagery and Software Analytical Services segment experienced a decline, generating $14.5 million, down 17% year-over-year. Management expressed caution due to ongoing budget uncertainty related to the EOCL (Electro-Optical Commercial Layer) program. In contrast, the Mission Solutions segment surged to $9.5 million from $1.0 million in the prior year, driven by a new international Gen-3 contract and milestone deliveries. The Professional and Engineering Services segment slipped to $11.2 million from $11.9 million year-over-year, attributed to project timing.
Despite the revenue shortfall, BlackSky's adjusted EBITDA increased to $8.8 million from $7.4 million in the same period last year, supported by higher revenue and cost discipline. Gross margin expanded significantly to 72.6%, up from 65.3% in the third quarter of 2025, reflecting an improved revenue mix and ongoing cost control efforts. The company also reported over $240 million in new awards during the quarter, lifting its backlog to $345 million, predominantly from international Gen-3 contracts.
Looking ahead, BlackSky's fiscal year 2026 guidance implies continued investment in scaling capacity to support its growing backlog. The company's ability to convert these awards into revenue will be critical, especially given the headwinds in the Imagery and Software Analytical Services segment. Stonegate's update underscores the importance of monitoring EOCL-related developments and the ramp-up of Gen-3 satellite capabilities, which are central to BlackSky's growth strategy.
For more details, the full announcement, including downloadable images and bios, is available here. Stonegate Capital Partners, a capital markets advisory firm, provides investor relations and equity research services. Its affiliate, Stonegate Capital Markets, offers investment banking services.
