BlackSky reported record service revenue in the second quarter of 2026, driven by adoption of its Gen-3 satellite solutions.
The company reported total revenue of $33 million in Q2, up 50% from the prior year. Revenue from space-based intelligence & AI services was $24.5 million during the quarter, up 36% year-over-year.
BlackSky CEO Brian O’Toole told investors on Thursday the company’s Gen-3 satellites drove the momentum in the second quarter. BlackSky began deploying its Gen-3 satellites last year. These satellites are designed to deliver 35-centimeter imagery with sub-hourly image collection speeds.
“This quarter marked an important milestone as Gen-3 imagery services began to scale and accelerate significant top line revenue and bottom line earnings growth,” O’Toole said. “Our space-based intelligence and sovereign mission solutions are rapidly becoming an essential capability for major customers around the world at a time when real-time space-based intelligence is critical to national security imperatives.”
O’Toole said BlackSky has experienced some launch-related delays with its Gen-3 rollout, but the company expects the next two Gen-3 satellites are expected to launch in the third quarter. He confirmed BlackSky is set to have eight Gen-3 satellites on orbit by the end of the year, and that BlackSky does not need any additional Gen-3 satellites to meet its 2026 revenue target.
International customers are a large part of BlackSky’s growth, with international subscription revenues growing 150% year-over-year.
“Multi-year international contracts for space-based intelligence subscription services now comprise over 80% of our total funded backlog,” O’Toole said. “We expect this momentum to continue as new customers adopt Gen-3 services, and current customers expand existing contracts to take advantage of growing Gen-3 capacity, improving latency, and revisit performance
The company also secured an eight-figure award from the National Reconnaissance Office during the quarter to speed development of its AROS multi-spectral, broad area Earth Observation satellites.
BlackSky also narrowed its net loss and improved adjusted EBITDA in the second quarter. Net loss for the second quarter of 2026 was $20.8 million, compared to a net loss of $41.2 million for the second quarter of 2025.
Adjusted EBITDA for the second quarter of 2026 was $4.7 million, a 14.2% margin, and a year-over-year increase of $7.5 million.
BlackSky affirmed its full year 2026 outlook, expecting revenue between $130 million and $150 million.
