BlackSky Technology Inc (NYSE:BKSY) shares are sliding on Thursday after the company delivered a first‑quarter report that came in well below expectations. Here’s what you should know.
- BlackSky Technology shares are retreating from recent levels. What’s pressuring BKSY stock?
What's Driving The Decline
BlackSky posted a loss of 82 cents per share, more than double the 40 cent loss analysts were expecting and worse than the 42 cents loss reported a year ago. Revenue also disappointed, coming in at $20.77 million versus the $28.07 million consensus estimate, marking a decline of nearly 30% from the same quarter last year.
The market is reacting to the size of the miss. Even though last year's first quarter benefited from a one‑time $9 million milestone tied to a mission solutions contract, investors are still focused on the fact that both earnings and revenue came in far short of expectations.
The company's net loss widened to $29.7 million, driven largely by swings in the fair value of derivatives linked to equity warrants and other instruments. Operating expenses also increased year-over-year due to higher stock‑based compensation and depreciation, adding to the pressure on the bottom line.
Strong Contract Momentum, But Overshadowed By Weak Results
BlackSky emphasized that demand for its Gen‑3 space‑based intelligence and AI services remains strong, and the company secured up to $160 million in new contracts during the quarter. These included a $25 million multi‑year subscription with a major international Ministry of Defense, a rapid scale‑up to nearly $30 million in annual subscription revenue from another international defense customer and a multi‑year IDIQ award worth up to $99 million from the Air Force Research Lab.
The company also signed several seven‑figure renewals and new agreements across government and international customers, and successfully deployed its fourth Gen‑3 satellite, which entered commercial operations within a week of launch.
Despite the weak quarter, BlackSky raised its full‑year 2026 revenue outlook to a range of $130 million to $150 million, citing strong year‑to‑date sales and improved visibility.
BKSY Shares Are Plunging
BKSY Price Action: BlackSky shares were down 23.20% at $31.11 at the time of publication on Thursday, according to Benzinga Pro.
Image: Zakharchuk/Shutterstock.com
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