Shares of BlackSky Technology surged 16.9% to $19.60 after the satellite intelligence company posted third-quarter results that blew past Wall Street expectations and pushed the firm into the black for the first time. Revenue hit a record $42.8 million, up 118% year over year and 29% sequentially, while net income reached $19 million and adjusted EBITDA — a measure of operating cash profitability — hit a record $13 million.
Analysts had forecast roughly $39.6 million in revenue and a loss of **$0.22 per share , making the profit swing a genuine shock.
• Revenue More Than Doubled, Driven by Defense and AI Demand. The 118% jump was primarily driven by accelerating customer demand for the company's newest high-resolution satellites, which generated record space-based intelligence and AI services revenue of $32.7 million.
In Q2, international subscription revenues were already up 150% , suggesting that military and allied-government contracts are scaling rapidly. For shareholders, this signals the company is graduating from a niche vendor into a recurring-revenue intelligence platform.
• First-Ever Quarterly Profit Resets the Bear Case. The $18.5 million in net income obliterates the prior consensus calling for continued losses. Adjusted EBITDA margin hit 29.9%, powered by expanding gross margins and operating leverage — meaning the company is selling far more without proportionally adding costs.
Just last quarter, net margin was still negative 62.5% , making this a dramatic swing that could force analysts to rework their valuation models entirely.
• Raised Full-Year Guidance Narrows the Uncertainty Window. BlackSky now expects $140–$150 million in 2026 revenue and $18–$24 million in adjusted EBITDA , up from prior guidance of $130–$150 million in revenue and $12–$24 million in EBITDA . The floor is rising, not just the ceiling — a meaningful signal that management has greater visibility into its contract pipeline.
• The Stock Is Still Far Below Its Peak — and the Market Is Booming. BlackSky's 52-week high is $52.88 , more than double today's price. The global geospatial imagery analytics market is valued at $16.2 billion and projected to reach $42.4 billion by 2030 . Even at $19.60, the company's roughly $800 million market value remains a rounding error in that market. The risk: fierce competition from Planet, ICEYE, Vantor (formerly Maxar), and Airbus — all chasing the same defense budgets. Whether BlackSky's profitability is durable or a one-quarter anomaly driven by contract timing will determine whether shares reclaim prior highs or stall here.