Revenue rebounded 50.1% YoY to $33.3M in Q2 2026, but gross margin collapsed to -23.4% from 64.7% in Q1, and net loss widened to -$20.8M, indicating severe cost overruns and earnings quality issues.
BlackSky Technology Inc. (BKSY) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 108.92M | 106.58M | 102.09M | 94.49M | 65.35M | 34.09M | 21.14M | 13.71M |
| Revenue Growth % | 4.07% | 4.39% | 8.04% | 44.59% | 91.73% | 61.27% | 54.12% | - |
| Cost of Goods Sold | 64.9M | 35.3M | 27.43M | 33.78M | 35.83M | 34.75M | 23.87M | 11.5M |
| COGS % of Revenue | - | 33.13% | 26.87% | 35.75% | 54.82% | 101.95% | 112.92% | 83.84% |
| Gross Profit | 44.02M | 71.27M | 74.66M | 60.71M | 29.52M | -663K | -2.73M | 2.22M |
| Gross Margin % | 40.41% | 66.88% | 73.13% | 64.25% | 45.18% | -1.95% | -12.92% | 16.16% |
| Gross Profit Growth % | - | -4.54% | 22.98% | 105.64% | 4552.94% | 75.72% | -223.24% | - |
| Operating Expenses | 91.34M | 118.17M | 118.95M | 116.69M | 116.07M | 119.48M | 38.66M | 48.46M |
| OpEx % of Revenue | - | 110.88% | 116.51% | 123.49% | 177.62% | 350.54% | 182.94% | 353.42% |
| Selling, General & Admin | 87.99M | 85.29M | 74.58M | 72.62M | 78.85M | 85.24M | 21.42M | 33.86M |
| SG&A % of Revenue | - | 80.03% | 73.05% | 76.85% | 120.65% | 250.07% | 101.33% | 246.93% |
| Research & Development | 2.27M | 2.54M | 2.3M | 1.68M | 1.56M | 1.53M | 7.45M | 1.1M |
| R&D % of Revenue | - | 2.38% | 2.25% | 1.78% | 2.39% | 4.49% | 35.23% | 8.01% |
| Other Operating Expenses | 2M | 30.34M | 42.07M | 42.39M | 35.66M | 32.71M | 9.8M | 13.5M |
| Operating Income | -47.32M | -46.9M | -44.29M | -55.98M | -86.55M | -120.14M | -41.4M | -46.25M |
| Operating Margin % | -43.44% | -44.01% | -43.38% | -59.24% | -132.44% | -352.48% | -195.86% | -337.26% |
| Operating Income Growth % | - | -5.9% | 20.89% | 35.32% | 27.96% | -190.24% | 10.49% | - |
| EBITDA | -4.67M | -15.95M | -169K | -11.67M | -49.21M | -105.84M | -31.59M | -39.35M |
| EBITDA Margin % | -4.28% | -14.96% | -0.17% | -12.35% | -75.3% | -310.51% | -149.48% | -286.96% |
| EBITDA Growth % | 49.29% | -9336.09% | 98.55% | 76.29% | 53.5% | -235.01% | 19.72% | - |
| D&A (Non-Cash Add-back) | 42.65M | 30.95M | 44.12M | 44.31M | 37.34M | 14.31M | 9.8M | 6.9M |
| EBIT | -50.75M | -55.19M | -44.66M | -43.88M | -69.45M | -238.83M | -42.52M | -39.64M |
| Net Interest Income | -10.96M | -11.14M | -10.63M | -7.24M | -4.31M | -52.88M | -5.2M | -13.69M |
| Interest Income | 4.93M | 3.8M | 1.56M | 2.06M | 1.12M | 0 | 0 | 0 |
| Interest Expense | 15.89M | 14.95M | 12.19M | 9.31M | 5.43M | 52.88M | 5.2M | 13.69M |
| Other Income/Expense | -19.33M | -23.23M | -12.56M | 2.79M | 11.67M | -123.85M | -6.33M | -13.74M |
| Pretax Income | -66.64M | -70.14M | -56.85M | -53.19M | -74.88M | -243.99M | -47.72M | -59.98M |
| Pretax Margin % | -61.19% | -65.81% | -55.68% | -56.29% | -114.58% | -715.84% | -225.79% | -437.43% |
| Income Tax | 60K | 125K | 370K | 673K | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | -0.09% | -0.18% | -0.65% | -1.27% | 0% | 0% | 0% | 0% |
| Net Income | -66.7M | -70.26M | -57.22M | -53.86M | -74.17M | -245.64M | -19.54M | -66.14M |
| Net Margin % | -61.24% | -65.93% | -56.05% | -57% | -113.5% | -720.68% | -92.43% | -482.35% |
| Net Income Growth % | 22.49% | -22.79% | -6.24% | 27.39% | 69.8% | -1157.45% | 70.47% | - |
| Net Income (Continuing) | -66.7M | -70.26M | -57.22M | -53.86M | -74.88M | -243.99M | -47.72M | -59.98M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 707K | -1.65M | 28.18M | -6.16M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.74 | -2.09 | -2.67 | -3.18 | -5.04 | -27.12 | -4.25 | -1.89 |
| EPS Growth % | 49.6% | 21.72% | 16.04% | 36.9% | 81.42% | -538.12% | -124.87% | - |
| EPS (Basic) | - | -2.09 | -2.67 | -3.18 | -5.04 | -26.94 | -4.27 | -1.89 |
| Diluted Shares Outstanding | 38.42M | 33.58M | 21.44M | 16.93M | 14.73M | 9.06M | 4.6M | 3.82M |
| Basic Shares Outstanding | 38.42M | 33.58M | 21.44M | 16.93M | 14.73M | 9.12M | 4.58M | 3.82M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying BKSY stock.
For fiscal year 2025, BlackSky Technology Inc. (BKSY) reported total revenue of $106.6M. This represents a 677.2% increase compared to $13.7M in 2019.
BlackSky Technology Inc. (BKSY) reported a net loss of $70.3M for the fiscal year ending 2025.
BlackSky Technology Inc. (BKSY) reported an operating income of $-46.9M, resulting in an operating profit margin of -44.0%. This margin reflects the operational efficiency of the business before interest and taxes.
BlackSky Technology Inc. (BKSY) generated $71.3M in gross profit for the year, representing a gross profit margin of 66.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Liquidity and funding risk
Metrics are mathematically derived from official filings.
Revenue Rebound Masks Underlying Volatility
BlackSky's Q2 2026 revenue surged 50.1% year-over-year to $33.3M, according to recent SEC filings, yet this follows a 29.7% decline in Q1, highlighting extreme quarter-to-quarter lumpiness.
The sharp acceleration in the latest quarter appears driven by the high-margin space-based intelligence services, which management cited as growing 50% from Q1. However, the erratic pattern—ranging from $19.6M to $35.2M over the past year—suggests revenue recognition tied to milestone-based contracts, making the underlying growth trend less durable than the headline suggests. Investors should monitor whether this volatility is inherent to the Mission Systems segment or if services can sustain a more predictable trajectory.
Gross Margin Anomaly Signals Cost Overrun
Q2 2026 gross margin collapsed to -23.4% from 64.7% in Q1, per financial statements, as COGS of $41.1M exceeded revenue, implying a one-off cost spike or revenue recognition timing issue.
The dramatic swing in gross margin—from 72.6% in Q4 2025 to negative in Q2 2026—is not typical of a software-scaled hardware business. This may indicate a significant write-down or cost overrun on a specific contract, possibly related to the Gen-3 satellite deployment. If this is a one-time event, margins could revert to the 65-75% range, but the lack of disclosure warrants caution. The structural gross margin remains attractive, but the volatility undermines confidence in near-term profitability.
Operating Leverage Still Elusive
Despite revenue growth, operating losses persist at -$7.8M in Q2 2026, with SG&A of $23.8M nearly flat year-over-year, indicating that overhead absorption is not yet scaling with sales.
SG&A has remained in the $18-24M range for the past two years, even as revenue fluctuates, suggesting a fixed cost base that requires higher revenue to achieve breakeven. The operating margin of -23.4% in Q2 is an improvement from -89.2% in Q1, but this is largely due to the revenue spike rather than cost discipline. The company appears to be in a period where revenue growth must outpace fixed costs to demonstrate operating leverage, which has not yet materialized.
Net Losses Deepen on Non-Operating Items
Q2 2026 net loss of -$20.8M is 2.7x the operating loss, per income statement data, suggesting significant non-operating charges such as interest, taxes, or impairments that are eroding bottom-line quality.
The gap between operating and net income has widened in recent quarters, with Q2 2026 showing a net margin of -62.5% versus an operating margin of -23.4%. This implies substantial below-the-line items, possibly including warrant revaluations or debt-related expenses. Stock-based compensation of $4.3M adds to the drag, but the unexplained non-operating losses warrant further investigation. Investors should adjust for these items to assess the true operational cash burn.
R&D Minimal, SG&A Dominates Cost Structure
R&D spending is negligible at $291K in Q2 2026, while SG&A of $23.8M represents the primary cost driver, per reported figures, indicating a focus on sales and administration over innovation.
The near-zero R&D investment is striking for a technology company, suggesting that development costs are either capitalized or outsourced. This may be a deliberate strategy to conserve cash, but it raises questions about the sustainability of the company's competitive edge, especially as peers invest heavily in next-generation capabilities. SG&A, which is roughly 70% of revenue, appears to be the main lever for margin improvement, yet management has not demonstrated meaningful cost reduction.
Q4 2025: A Glimpse of Profitability
Q4 2025 was the closest BlackSky came to breakeven, with net income of -$868K and operating margin of -11.8%, according to financial statements, driven by revenue of $35.2M and controlled costs.
This quarter stands out as the operational peak in the provided data, with revenue at its highest and losses at their narrowest. The improvement appears to be a result of both higher revenue and lower SG&A relative to other periods. However, this was followed by a sharp deterioration in Q1 2026, suggesting that the Q4 performance was not sustainable. The company's ability to replicate this level of cost discipline and revenue generation will be critical to achieving profitability.
Liquidity Crunch Looms Over Growth Story
With cash of $42.4M and a TTM net loss exceeding $70M, BlackSky's runway appears limited, per recent disclosures, potentially forcing dilutive financing before the Gen-3 fleet generates returns.
The company's cash burn is unsustainable at current levels, and the negative gross margin in Q2 2026 only exacerbates the strain. While revenue growth is promising, the lack of a raised guidance despite strong sales commentary suggests management is cautious about near-term profitability. Short-sellers would likely focus on the balance sheet risk, as the need for external capital could dilute existing shareholders. The Gen-3 transition may also require additional capex, further pressuring liquidity.