10-Q · May 7, 2026
In its Q1 2026 earnings report, BlackSky posted revenues of $20.77 million, falling 29.7% year-over-year and missing expectations of $27.48 million, while EPS was reported at -$0.82, significantly below the anticipated…
Earnings analysis · 10-Q
BKSY earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
BlackSky delivered a strong Q3 2026, with revenue of $42.844 million versus $33 million in Q2 and $20 million a year earlier, while diluted EPS improved to $0.10 from losses of $(0.54) and $(0.44), respectively. Gross…
Read full summary
BlackSky delivered a strong Q3 2026, with revenue of $42.844 million versus $33 million in Q2 and $20 million a year earlier, while diluted EPS improved to $0.10 from losses of $(0.54) and $(0.44), respectively. Gross margin also expanded to approximately 79.0% from 72.8% sequentially and 65.3% year over year. The principal financial risk is continued investment, with 2026 capital-expenditure guidance of $50 million-$60 million, while the $7.5 million merger settlement was substantially covered by $7.4 million of insurance proceeds.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.1
- Gross margin
- 79.0%
What stood out
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Record revenue growth
Q3 2026 revenue was $42.844 million, up from $33 million in Q2 2026 and $20 million in Q3 2025, representing sequential growth of approximately 30% and year-over-year growth of approximately 114%.
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EPS turned positive
Diluted EPS was $0.10, improving from $(0.54) in Q2 2026 and $(0.44) in Q3 2025, a favorable sequential change of $0.64 per share and year-over-year change of $0.54 per share.
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Gross margin expanded
Gross margin was approximately 79.0%, based on the reported 21% Q3 cost-of-sales ratio, compared with 72.8% in Q2 2026 and 65.3% in Q3 2025.
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Full-year outlook raised
Management raised full-year 2026 revenue guidance to $140 million-$150 million and Adjusted EBITDA guidance to $18 million-$24 million; capital-expenditure guidance remained $50 million-$60 million.
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Litigation largely insurance funded
The merger-related settlement required $7.5 million of settlement consideration, with $7.4 million funded by insurance proceeds; the filing states the matter is not expected to materially affect operations or financial condition.
What to watch
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High capital spending needs
The company expects capital expenditures of $50 million-$60 million for 2026, creating continued investment requirements even as quarterly free cash flow was not disclosed in the supplied 10-Q text.
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Residual merger litigation exposure
The merger litigation settlement totaled $7.5 million, although $7.4 million was funded by insurance proceeds. The company also indemnified former Osprey directors, leaving residual legal and indemnification exposure.
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Controls provide limited assurance
Management concluded that disclosure controls were effective only at a reasonable-assurance level as of September 30, 2026; the filing notes that controls cannot provide absolute assurance against error, fraud, or undetected control issues.
Management's outlook
The 10-Q does not provide numeric revenue or EPS guidance. The accompanying earnings release reported raised full-year 2026 revenue guidance of $140 million-$150 million, Adjusted EBITDA guidance of $18 million-$24 million, and maintained capital-expenditure guidance of $50 million-$60 million.
Earlier filings 4
10-K · March 17, 2026
BlackSky positions itself as a software-first, vertically integrated provider of high-revisit, real-time space-based imagery and AI analytics built around its Gen-2/Gen-3 smallsat constellation and the BlackSky Spectra®…
10-K · March 20, 2024
BlackSky positions itself as a vertically integrated provider of real-time geospatial intelligence combining a high-revisit LEO smallsat constellation with an AI-enabled BlackSky Spectra SaaS platform. The 10-K…
10-K · March 23, 2023
BlackSky positions itself as a vertically integrated provider of real-time geospatial intelligence combining a high-revisit LEO smallsat constellation with an AI-enabled Spectra AI SaaS platform. The 10-K highlights…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.