BlackSky Technology Inc.

Previous wording

Founded in 2014, BlackSky is a space technology company that delivers real-time imagery, analytics and high-frequency monitoring of the world’s most critical and strategic locations, economic assets, and events. By taking a software-first technology approach, we are delivering real time space-based intelligence at disruptive speed, scale and economics. BlackSky is trusted by many of the most demanding U.S. and international government agencies and commercial businesses around the world. We are defining a new category of space-based intelligence products and services centered upon real-time imagery and automated analytics, delivered through an easy-to-use interface that operates seamlessly with our high-revisit and low latency satellite constellation. Our first-of-its-kind, purpose-built, secure artificial intelligence ("AI")-enabled space-to-ground architecture helps customers see, understand and anticipate change for a decisive strategic advantage. BlackSky can provide dynamic hourly monitoring over many of the most strategic locations on Earth up to 15 times per day from dawn to dusk.

Current wording

Founded in 2014, BlackSky is a space technology company that delivers real-time imagery, analytics and high-frequency monitoring of the world’s most critical and strategic locations, economic assets, and events. By taking a software-first technology approach, we are delivering real time space-based intelligence at disruptive speed, scale and economics. BlackSky is trusted by many of the most demanding U.S. and international government agencies and commercial businesses around the world. We are defining a new category of space-based intelligence products and services centered upon real-time imagery and automated analytics, delivered through an easy-to-use interface that operates seamlessly with our high-revisit and low latency satellite constellation. Our purpose-built, secure artificial intelligence ("AI")-enabled space-to-ground architecture helps customers see, understand and anticipate change for a decisive strategic advantage. BlackSky can provide dynamic hourly monitoring over many of the most strategic locations on Earth up to 15 times per day from dawn to dusk.

Previous wording

Our revenue is generated by selling space-based intelligence & AI services, primarily through our BlackSky Spectra software platform, and by providing mission solutions and advanced technology programs to strategic customers on a project basis. Due to shifting geopolitical realities, international defense spending has grown faster than U.S. spending in recent periods, with a significant emphasis on development of national space capabilities. For the six months ended June 30, 2026, revenue generated from international customers accounted for 60% of our total revenue, as opposed to 48% for the six months ended June 30, 2025.

Current wording

Our revenue is generated by selling space-based intelligence & AI services, primarily through our BlackSky Spectra software platform, and by providing mission solutions and advanced technology programs to strategic customers on a project basis. Due to shifting geopolitical realities, international defense spending has grown faster than U.S. spending in recent periods, with a significant emphasis on development of national space capabilities. For the nine months ended September 30, 2026, revenue generated from international customers accounted for 56% of our total revenue, as opposed to 50% for the nine months ended September 30, 2025.

Previous wording

We generally structure our customer agreements as annual or multi-year subscription contracts. We offer pricing tiers that enable the customer to manage collection priorities. These options provide customers with flexibility to utilize our space-based intelligence and AI services in a manner that best suits their business needs. For example, during critical events, customers may pay a premium to prioritize their monitoring and collection requirements, while at other times, customers can select lower priority collections to allow for more economical use of their overall subscription.

Current wording

We generally structure our customer agreements as annual or multi-year subscription contracts. We offer pricing tiers that enable the customer to manage collection priorities. These options provide customers with flexibility to utilize our space-based intelligence and AI services in a manner that best suits their needs. For example, during critical events, customers may pay a premium to prioritize their monitoring and collection requirements, while at other times, customers can select lower priority collections to allow for more economical use of their overall subscription.

Previous wording

Mission solutions and advanced technology programs revenue contain estimates that may result in the recognition of revenue in a current period for performance obligations that were satisfied or partially satisfied in a prior period. For the impacts of changes in estimates on our contracts, see Note 2—“Basis of Presentation and Summary of Significant Accounting Policies” of the notes to the consolidated financial statements contained within this Quarterly Report on Form 10-Q.

Current wording

Mission solutions and advanced technology programs revenue contain estimates that may result in the recognition of revenue in a current period for performance obligations that were satisfied or partially satisfied in a prior period. For the impacts of changes in estimates on our contracts, see Note 2—“Basis of Presentation and Summary of Significant Accounting Policies” of the notes to the unaudited condensed consolidated Financial Statements contained within this Quarterly Report on Form 10-Q.

Previous wording

Our costs and expenses, which includes stock-based compensation expense for those employees who support each category, are incurred from the following categories:

Current wording

Our costs and expenses, which include stock-based compensation expense for those employees who support each category, are incurred from the following categories:

Previous wording

•Space-Based Intelligence & AI Services Costs: primarily include third-party data and imagery, ground station service payments, internal labor to support our ground stations and space operations, and compute/storage costs to facilitate our expanding AI/machine learnings ("ML") functionality. Costs are expensed as they are incurred except for incremental costs to obtain a contract, which are primarily sales commissions on contracts greater than one year, and are capitalized and amortized to selling, general, and administrative expenses on a systematic basis consistent with the transfer of goods and services and directly identifiable costs to fulfill a contract. Expense related to stock-based payments is classified in the unaudited condensed consolidated statements of operations and comprehensive loss based upon the classification of each employee's cash compensation.

Current wording

•Space-Based Intelligence & AI Services Costs: primarily include third-party data and imagery, ground station service payments, internal labor to support our ground stations and space operations, and compute/storage costs to facilitate our expanding AI/machine learnings ("ML") functionality. Costs are expensed as they are incurred except for incremental costs to obtain a contract, which are primarily sales commissions on contracts greater than one year, and are capitalized and amortized to selling, general, and administrative expenses on a systematic basis consistent with the transfer of goods and services and directly identifiable costs to fulfill a contract. Expense related to stock-based payments is classified in the unaudited condensed consolidated statements of operations and comprehensive income (loss) based upon the classification of each employee's cash compensation.

Previous wording

•Advanced Technology Programs Costs: primarily include the cost of internal labor and external subcontract labor costs for our customer-centric software service solutions.

Current wording

•Advanced Technology Programs Costs: primarily include the costs of internal labor and external subcontract labor for our customer-centric software service solutions.

Previous wording

Results of Operations for the Three and Six Months Ended June 30, 2026 and 2025

Current wording

Results of Operations for the Three and Nine Months Ended September 30, 2026 and 2025

Previous wording

Effective January 1, 2025, we reclassified our captions on the unaudited condensed consolidated statements of operations and comprehensive loss to better align with our increasing portfolio of mission solutions product offerings and advanced technology program service offerings. Revenue and costs that were previously classified as imagery & software analytical services are now classified as space-based intelligence & AI services. Professional & engineering services are now either classified as mission solutions if they are related to our product offerings or advanced technology programs if they are related to our service offerings. As a result, for the three and six months ended June 30, 2025, the amounts presented have been reclassified to conform to the current presentation for the three and six months ended June 30, 2026.

Current wording

Effective January 1, 2025, we reclassified our captions on the unaudited condensed consolidated statements of operations and comprehensive income (loss) to better align with our increasing portfolio of mission solutions product offerings and advanced technology program service offerings. Revenue and costs that were previously classified as imagery & software analytical services are now classified as space-based intelligence & AI services. Professional & engineering services are now either classified as mission solutions if they are related to our product offerings or advanced technology programs if they are related to our service offerings. As a result, for the three and nine months ended September 30, 2025, the amounts presented have been reclassified to conform to the current presentation for the three and nine months ended September 30, 2026.

Previous wording

The following table provides the components of results of operations for the three and six months ended June 30, 2026 and 2025:

Current wording

The following table provides the components of results of operations for the three and nine months ended September 30, 2026 and 2025:

Previous wording

Space-based intelligence & AI services revenue increased for the three and six months ended June 30, 2026, as compared to the same periods in 2025, primarily from new assured contracts with existing customers in the second quarter of 2026 for increased space-based tactical intelligence, surveillance, and reconnaissance capabilities.

Current wording

Space-based intelligence & AI services revenue increased for the three and nine months ended September 30, 2026, as compared to the same periods in 2025, primarily from new assured contracts with existing customers in the second quarter of 2026 for increased space-based tactical intelligence, surveillance, and reconnaissance capabilities. The three months ended September 30, 2026 also included a new assured contract from an existing customer.

Previous wording

Additionally, mission solutions revenue increased by $1.8 million due to net favorable estimate-at-completion adjustments comprised of gross favorable adjustments of $3.7 million and gross unfavorable adjustments of $1.9 million. The favorable adjustments resulted primarily from reductions in the estimated total costs at completion on two mission solutions programs as program risks were retired. The unfavorable adjustment primarily reflected an increase in the estimated labor hours on one other mission solutions program. Mission solutions revenue contains estimates that can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in a prior period. For the impacts of changes in estimates on our contracts, see Note 2—“Basis of Presentation and Summary of Significant Accounting Policies” of the notes to the consolidated financial statements contained within this Quarterly Report on Form 10-Q.

Current wording

Mission solutions revenue was relatively flat for the nine months ended September 30, 2026, as compared to the same period in 2025. For the nine months ended September 30, 2026, there was an increase in mission solutions revenue that included $9.5 million generated from two existing mission solutions programs, primarily attributable to an increase of $5.5 million in the rate of performance in addition to gross favorable estimate-at-completion adjustments of $4.1 million. The favorable adjustments primarily resulted from reductions in the estimated total costs at completion on two mission solutions programs as program risks were retired. Mission solutions revenue contains estimates that can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in a prior period. For the impacts of changes in estimates on our contracts, see Note 2—“Basis of Presentation and Summary of Significant Accounting Policies” of the notes to the unaudited condensed consolidated Financial Statements contained within this Quarterly Report on Form 10-Q. These increases were mostly offset by a $9.3 million decrease in revenue related to one-time work in process costs recognized in the first quarter of 2025 on a customized Earth observation satellite for a then-new customer, which did not recur in 2026.

Previous wording

Space-based intelligence & AI services costs, excluding depreciation and amortization, increased for the three and six months ended June 30, 2026 as compared to the same periods in 2025, driven by increased labor fulfillment and direct material costs on new and existing long-term contracts driven by an increase in demand of space-based intelligence and AI services.

Current wording

Space-based intelligence & AI services costs, excluding depreciation and amortization, increased for the three and nine months ended September 30, 2026 as compared to the same periods in 2025, primarily caused by increased labor fulfillment costs on new and existing long-term contracts driven by an increase in demand of space-based intelligence and AI services.

Previous wording

Mission solutions costs, excluding depreciation and amortization, increased for the three months ended June 30, 2026 as compared to the same period in 2025, reflecting an increase in the rate of performance on two mission solutions programs, one of which began in the fourth quarter of 2025. Mission solutions costs, excluding depreciation and amortization, decreased for the six months ended June 30, 2026 as compared to the same period in 2025, largely due to the impact of incurred work in process costs under a satellite procurement contract in the first quarter of 2025.

Current wording

Mission solutions costs, excluding depreciation and amortization, increased for the three months ended September 30, 2026 as compared to the same period in 2025, reflecting an increase in the rate of performance on two mission solutions programs, both of which began in the fourth quarter of 2025. Mission solutions costs, excluding depreciation and amortization, decreased for the nine months ended September 30, 2026 as compared to the same period in 2025, largely due to the impact of incurred work in process costs under a satellite procurement contract in the first quarter of 2025.

Previous wording

Advanced technology programs costs, excluding depreciation and amortization, decreased for the three and six months ended June 30, 2026 as compared to the same periods in 2025, mainly due to a decrease in direct labor fulfillment costs caused by the timing of services performed on a number of new and existing contracts.

Current wording

Advanced technology programs costs, excluding depreciation and amortization, increased for the three months ended September 30, 2026, as compared to the same period in 2025, mainly due to an increase in third-party costs incurred on a contract to accelerate the development of next generation space systems. Advanced technology programs costs, excluding depreciation and amortization, decreased for the nine months ended September 30, 2026, as compared to the same period in 2025, primarily due to a decrease in direct labor fulfillment costs driven by the timing of services performed on a number of new and existing contracts.

Previous wording

Selling, general, and administrative expenses increased during the three and six months ended June 30, 2026 as compared to the same periods in 2025, primarily due to an increase in stock-based compensation expense driven by an increase in the average stock price at the time of the grant of new stock awards in 2026. In addition, selling and marketing expenses increased due to our increased utilization of sales consultants as we continue to invest in international sales initiatives. Information technology and other administrative expenses increased as a result of additional procurement of company-wide software solutions. These various increases were partially offset by lower salaries and benefits costs as selling and marketing headcount decreased and we experienced increased labor utilization in customer programs. For the six months ended June 30, 2026, selling, general, and administrative expenses were also impacted by decreases in professional fees as a result of one-time transaction costs and accounting fees incurred during the first quarter of 2025 that were associated with finalizing the BlackSky Satellite Systems acquisition that closed in late 2024.

Current wording

Selling, general, and administrative expenses increased during the three and nine months ended September 30, 2026 as compared to the same periods in 2025, primarily due to an increase in salaries and benefit costs related to an increase in headcount within our engineering team. Stock-based compensation expense increased as a result of an increase in the average stock price at the time of the grant of new stock awards in 2026. In addition, selling and marketing expenses increased due to our increased utilization of sales consultants as we continue to invest in international sales initiatives.

Previous wording

Research and development expense increased for the three and six months ended June 30, 2026, as compared to the same periods in 2025, due to increased investments in our next-generation AROS multi-spectral, large-area collection system and novel AI capabilities.

Current wording

Research and development expenses increased for the three and nine months ended September 30, 2026, as compared to the same periods in 2025, due to increased investments in our AI capabilities and next-generation AROS multi-spectral, large-area collection system.

Previous wording

Depreciation expense from satellites decreased for the three months ended June 30, 2026, as compared to the same period in 2025, since 2025 depreciation expense included both Gen-2 and Gen-3 satellites, whereas depreciation expense in the second quarter of 2026 only included Gen-3 satellites; our Gen-2 satellites became fully depreciated during the first quarter of 2026. Depreciation expense from satellites increased for the six months ended June 30, 2026, as compared to the same period in 2025, as a result of the launch of our Gen-3 satellites throughout 2025 and during the first quarter of 2026; this increase in depreciation expense was partially offset by the decline in our depreciation expense on our Gen-2 satellites, which became fully depreciated in the first quarter of 2026.

Current wording

Depreciation expense from satellites decreased for the three months ended September 30, 2026, as compared to the same period in 2025, since 2025 depreciation expense included both Gen-2 and Gen-3 satellites, whereas depreciation expense in the third quarter of 2026 only included Gen-3 satellites; our Gen-2 satellites became fully depreciated during the first quarter of 2026. Depreciation expense from satellites increased for the nine months ended September 30, 2026, as compared to the same period in 2025, as a result of the launch of our Gen-3 satellites throughout 2025 and 2026; this increase in depreciation expense was partially offset by the decline in depreciation expense on our Gen-2 satellites, the last of which became fully depreciated in the first quarter of 2026.

Previous wording

Depreciation expense from all other property and equipment increased for the three and six months ended June 30, 2026 as compared to the same periods in 2025. This increase was primarily driven by the depreciation of increasing asset balances for internal-use software as we continue to invest in our BlackSky Spectra software platform, features for our Gen-3 constellation, and internal infrastructure.

Current wording

Depreciation expense from all other property and equipment was relatively flat for the three months ended September 30, 2026 and increased for the nine months ended September 30, 2026, as compared to the same periods in 2025. The increase for the nine months ended September 30, 2026 was primarily driven by software that was deployed in the first half of 2025 in conjunction with the launch of the first two satellites in our Gen-3 constellation. We continue to invest in our BlackSky Spectra software platform, features for our Gen-3 constellation, and internal infrastructure.

Previous wording

Amortization expense increased for the three and six months ended June 30, 2026 as compared to the same periods in 2025 due to the change in the estimated useful life of an intangible asset during the fourth quarter of 2025.

Current wording

Amortization expense decreased for the three months ended September 30, 2026 and increased for the nine months ended September 30, 2026, as compared to the same periods in 2025, due to the change in the estimated useful life of an intangible asset during the fourth quarter of 2025; this asset was fully amortized as of the end of the second quarter of 2026.

Previous wording

Our common stock price significantly drives fluctuations in our equity warrants and other equity instruments that we classify as derivative liabilities in our unaudited condensed consolidated balance sheets and measure at fair value. Fluctuations to these instruments are inversely related to changes in our common stock price, the volatility of the markets, and the duration of the equity warrants.

Current wording

Our common stock price significantly drives fluctuations in our equity warrants and other equity instruments that we classify as derivative liabilities in our unaudited condensed consolidated balance sheets and measure at fair value. Fluctuations to these instruments are related to changes in our common stock price, the volatility of the markets, and the duration of the equity warrants.

Previous wording

Outstanding derivative liabilities are re-measured to fair value at each reporting date. The gains or losses recognized in the applicable period are non-cash fair value adjustments. These re-measurements of derivative liabilities generated a loss for the three and six months ended June 30, 2026 and 2025. In addition, in May 2026, seven thousand of our March 2023 private placement warrants were exercised and the exercised warrants were re-measured to fair value on their exercise dates, resulting in the recognition of a loss on derivatives of $129 thousand.

Current wording

Outstanding derivative liabilities are re-measured to fair value at each reporting date. The gains or losses recognized in the applicable period are non-cash fair value adjustments. These re-measurements of derivative liabilities generated a gain for the three and nine months ended September 30, 2026 and the three months ended September 30, 2025, but a loss for the nine months ended September 30, 2025.

Previous wording

Interest income increased during the three and six months ended June 30, 2026 as a result of higher short-term investment balances during the period as compared to the same periods in 2025.

Current wording

Interest income increased during the three and nine months ended September 30, 2026 as a result of higher short-term investment balances during the period as compared to the same periods in 2025.

Previous wording

Interest expense increased during the three and six months ended June 30, 2026, as compared to the same periods in 2025 because our outstanding debt increased from $123.5 million as of June 30, 2025 to $217.2 million as of June 30, 2026. In July 2025, we lowered the average interest rate of our outstanding debt when we repaid $100.2 million of loans from related parties in their entirety, which had a stated interest rate of 12% upon repayment, and issued $185.0 million of Convertible Senior Notes with a stated interest rate of 8.25%.

Current wording

Interest expense decreased during the three months ended September 30, 2026, as compared to the same period in 2025, due to a lower rate on our debt outstanding. Our loans from related parties, which were fully repaid in July 2025 had a stated interest rate of 12%, while our Convertible Senior Notes carry a stated interest rate of 8.25%. Interest expense increased during the nine months ended September 30, 2026, as compared to the same period in 2025, because our outstanding debt increased from $202.1 million as of September 30, 2025 to $226.0 million as of September 30, 2026.

Previous wording

Adjusted EBITDA is presented as a supplemental measure to our GAAP measures of performance. When evaluating Adjusted EBITDA, you should be aware that we may incur future expenses similar to those excluded when calculating this measure. In addition, our presentation of this measure should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Furthermore, our computation of Adjusted EBITDA may not be directly comparable to similarly titled measures computed by other companies, as the nature of the adjustments that other companies may include or exclude when calculating Adjusted EBITDA may differ from the adjustments reflected in our measure. Because of these limitations, Adjusted EBITDA should not be considered in isolation, nor should this measure be viewed as a substitute for the most directly comparable GAAP measure, which is net loss. We compensate for the limitations of non-GAAP measures by relying primarily on our GAAP results. You should review the reconciliation of our net loss to Adjusted EBITDA below and not rely on any single financial measure to evaluate our performance.

Current wording

Adjusted EBITDA is presented as a supplemental measure to our GAAP measures of performance. When evaluating Adjusted EBITDA, you should be aware that we may incur future expenses similar to those excluded when calculating this measure. In addition, our presentation of this measure should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Furthermore, our computation of Adjusted EBITDA may not be directly comparable to similarly titled measures computed by other companies, as the nature of the adjustments that other companies may include or exclude when calculating Adjusted EBITDA may differ from the adjustments reflected in our measure. Because of these limitations, Adjusted EBITDA should not be considered in isolation, nor should this measure be viewed as a substitute for the most directly comparable GAAP measure, which is net income (loss). We compensate for the limitations of non-GAAP measures by relying primarily on our GAAP results. You should review the reconciliation of our net income (loss) to Adjusted EBITDA below and not rely on any single financial measure to evaluate our performance.

Previous wording

The table below reconciles our net loss to Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025:

Current wording

The table below reconciles our net income (loss) to Adjusted EBITDA for the three and nine months ended September 30, 2026 and 2025:

Previous wording

As of June 30, 2026, our existing sources of liquidity included cash and cash equivalents and short-term investments. Our cash and cash equivalents excluding restricted cash totaled $36.9 million and $42.4 million as of June 30, 2026 and December 31, 2025, respectively, and our short-term investments totaled $197.3 million and $82.0 million as of June 30, 2026 and December 31, 2025, respectively. We have incurred year to date losses and generated negative cash flows from operations since our inception in September 2014. As of June 30, 2026, we had an accumulated deficit of $776.9 million.

Current wording

As of September 30, 2026, our existing sources of liquidity included cash and cash equivalents and short-term investments. Our cash and cash equivalents excluding restricted cash totaled $27.4 million and $42.4 million as of September 30, 2026 and December 31, 2025, respectively, and our short-term investments totaled $185.4 million and $82.0 million as of September 30, 2026 and December 31, 2025, respectively. We have incurred year to date losses and generated negative cash flows from operations since our inception in September 2014. As of September 30, 2026, we had an accumulated deficit of $758.4 million.

Previous wording

Our short-term liquidity as of June 30, 2026 was $244.1 million. We expect cash and cash equivalents, short-term investments, and cash generated from operating activities to be sufficient to meet our working capital and capital expenditure needs for the foreseeable future. Our future long-term capital requirements will depend on many factors, including our Gen-3 satellite and mission solutions production needs, launch and insurance costs, our growth rate, customer demand for capacity, the timing and extent of spending to support solution development efforts, our ongoing investments in technology infrastructure, and the continuing market acceptance of our products and services.

Current wording

Our short-term liquidity as of September 30, 2026 was $231.1 million. We expect cash and cash equivalents, short-term investments, and cash generated from operating activities to be sufficient to meet our working capital and capital expenditure needs for the foreseeable future. Our future long-term capital requirements will depend on many factors, including our Gen-3 satellite and mission solutions production needs, launch and insurance costs, our growth rate, customer demand for capacity, the timing and extent of spending to support solution development efforts, our ongoing investments in technology infrastructure, and the continuing market acceptance of our products and services.

Previous wording

In July 2025, we issued $185.0 million aggregate principal amount of Convertible Senior Notes in a private offering. The Convertible Senior Notes will mature on August 1, 2033 unless earlier converted, redeemed or repurchased. The Convertible Senior Notes will bear interest at a rate of 8.25% per year, payable semiannually in arrears on February 1 and August 1 of each year, beginning on February 1, 2026.

Current wording

In July 2025, we issued $185.0 million aggregate principal amount of Convertible Senior Notes in a private offering. The Convertible Senior Notes will mature on August 1, 2033 unless earlier converted, redeemed or repurchased. The Convertible Senior Notes bear interest at a rate of 8.25% per year, payable semiannually in arrears on February 1 and August 1 of each year.

Previous wording

We entered into vendor financing agreements for $57.6 million to fund the costs of multiple satellite launches. Our November 2023 agreement provides for a $27.0 million borrowing commitment and payments accrue interest at 12.6% per annum while our November 2025 agreement is for a $30.6 million borrowing commitment and payments accrue interest at 9.50% per annum. A portion of the vendor financing agreements can be drawn down equally per satellite launch and will be repaid quarterly on a pro-rata basis across a three-year period after each successful launch milestone. Interest begins to accrue on each launch date. During the six months ended June 30, 2026, we incurred $13.2 million of additional debt related to the satellite launch vendor financing agreements. As of June 30, 2026, we have $18.7 million of additional vendor financing available to us for future launches. For additional information regarding the Convertible Senior Notes and vendor financing agreements, see Note 11 – “Debt and Other Financing” included in Part I, Item 1, “Notes to Condensed Consolidated Financial Statements” of this Quarterly Report on Form 10-Q.

Current wording

We have entered into vendor financing agreements for $88.2 million to fund the costs of multiple satellite launches. Our November 2023 agreement provides for a $27.0 million borrowing commitment and payments accrue interest at 12.6% per annum. Our November 2025 agreement is for a $30.6 million borrowing commitment and payments accrue interest at 9.50% per annum. Our third borrowing commitment, entered into during August 2026, is for $30.6 million, with payments accruing interest at 9.12% per annum. A portion of the vendor financing agreements can be drawn down equally per satellite launch and will be repaid quarterly on a pro-rata basis across a three-year period after each successful launch milestone. Interest begins to accrue on each launch date. During the nine months ended September 30, 2026, we incurred $24.3 million of additional debt related to these satellite launch vendor financing agreements. As of September 30, 2026, we had $38.3 million of additional vendor financing available to us for future launches. For additional information regarding our Convertible Senior Notes and vendor financing agreements, see Note 11 – “Debt and Other Financing” of the notes to the unaudited condensed consolidated Financial Statements contained within this Quarterly Report on Form 10-Q.

Previous wording

In December 2025, we entered into an ATM sales agreement with Deutsche Bank Securities Inc. and Craig-Hallum Capital Group LLC as our sales agents (the “2025 ATM Agreement”), under which we could offer and sell from time to time up to $100.0 million of shares of our Class A common stock in negotiated transactions or transactions that were deemed to be an ATM offering. During the six months ended June 30, 2026, we fully exhausted the 2025 ATM Agreement, resulting in net proceeds of $97.0 million; we terminated the 2025 ATM Agreement in May 2026.

Current wording

In December 2025, we entered into an ATM sales agreement with Deutsche Bank Securities Inc. and Craig-Hallum Capital Group LLC as our sales agents (the “2025 ATM Agreement”), under which we could offer and sell from time to time up to $100.0 million of shares of our Class A common stock in negotiated transactions or transactions that were deemed to be an ATM offering. We fully exhausted the 2025 ATM Agreement in the second quarter of 2026, resulting in net proceeds of $97.0 million during the nine months ended September 30, 2026; we terminated the 2025 ATM Agreement in May 2026.

Previous wording

On May 22, 2026, we entered into a new ATM sales agreement with Deutsche Bank Securities Inc. and Craig-Hallum Capital Group LLC as our sales agents (the “2026 ATM Agreement”), under which we may offer and sell from time to time up to $250.0 million of shares of our Class A common stock in negotiated transactions or transactions that are deemed to be an ATM offering. During the six months ended June 30, 2026, we issued and sold shares of our Class A common stock under our 2026 ATM Agreement, resulting in net proceeds of $63.1 million.

Current wording

On May 22, 2026, we entered into a new ATM sales agreement with Deutsche Bank Securities Inc. and Craig-Hallum Capital Group LLC as our sales agents (the “2026 ATM Agreement”), under which we may offer and sell from time to time up to $250.0 million of shares of our Class A common stock in negotiated transactions or transactions that are deemed to be an ATM offering. During the nine months ended September 30, 2026, we issued and sold shares of our Class A common stock under our 2026 ATM Agreement, resulting in net proceeds of $63.1 million.

Previous wording

As of June 30, 2026 and December 31, 2025, we had recorded $26.0 million and $28.6 million of current contract assets, respectively. We expect to continue billing for and receiving payments on our contract assets over the next 12 months as interim milestones on a few major customer contracts are met. The timing of customer billing and payment varies from contract to contract and we may continue to generate additional contract assets in 2026 and beyond as we enter into new contracts.

Current wording

As of September 30, 2026 and December 31, 2025, we had recorded $27.0 million and $28.6 million of current contract assets, respectively. We expect to continue billing for and receiving payments on our contract assets over the next 12 months as interim milestones on a few major customer contracts are met. The timing of customer billing and payment varies from contract to contract and we may continue to generate additional contract assets in 2026 and beyond as we enter into new contracts.

Previous wording

As of June 30, 2026, our current assets were $309.8 million, consisting primarily of short-term investments, cash and cash equivalents, accounts receivable, and contract assets. Our current assets also include $10.0 million of restricted cash, of which $9.5 million was held primarily in term deposits that served as compensating balances for letters of credit required under contracts with certain customers.

Current wording

As of September 30, 2026, our current assets were $297.1 million, consisting primarily of short-term investments, cash and cash equivalents, contract assets, and accounts receivable. Our current assets also include $18.3 million of restricted cash, of which $17.9 million was held primarily in term deposits that served as compensating balances for letters of credit required under contracts with certain customers.

Previous wording

As of June 30, 2026, our current liabilities were $53.1 million, consisting primarily of contract liabilities, accounts payable and accrued liabilities, and the current portion of debt. Accordingly, we have sufficient cash and working capital to fund our short-term liquidity requirements.

Current wording

As of September 30, 2026, our current liabilities were $56.4 million, consisting primarily of accounts payable and accrued liabilities, contract liabilities, and the current portion of our long-term debt. Accordingly, we have sufficient cash and working capital to fund our short-term liquidity requirements.

Previous wording

The following table provides a summary of cash flow data for the six months ended June 30, 2026 and 2025. Our short-term liquidity at June 30, 2026 was $244.1 million. Short-term investments of $197.3 million are not classified as cash, cash equivalents, or restricted cash.

Current wording

The following table provides a summary of cash flow data for the nine months ended September 30, 2026 and 2025. Our short-term liquidity at September 30, 2026 was $231.1 million. Short-term investments of $185.4 million are not classified as cash, cash equivalents, or restricted cash.

Previous wording

For the six months ended June 30, 2026, net cash used in operating activities was $5.9 million, which is a decrease as compared to the same period in 2025. The decrease in net cash used in operating activities was largely related to a change in working capital in the first quarter of 2025 when we received a cash payment for capacity for future purchase orders and recorded it as deferred revenue in our unaudited condensed consolidated balance sheets. This decrease was partially offset by an increase in cash collected from interim milestone billings on a few major customer contracts during the six months ended June 30, 2026.

Current wording

For the nine months ended September 30, 2026, net cash used in operating activities was $2.3 million, which is a decrease as compared to the same period in 2025. Net cash used in operating activities for the nine months ended September 30, 2025 included $29.1 million of paid in kind interest associated with our related party notes that we repaid utilizing the proceeds from our Convertible Notes issued in July 2025. See "Financing activities" below for further detail on the remainder of the cash inflows and outflows related to our debt transactions during the nine months ended September 30, 2025. The decrease in net cash used in operating activities was also impacted by an increase in operating income, adjusted for depreciation, amortization, stock-based compensation expense, (gain) loss on derivatives, and other non-cash items, due to an increase in revenue, which was offset by a decrease in cash provided by working capital. The decrease in cash provided by working capital was related to the 2025 receipt of a cash payment for capacity for future purchase orders and recorded it as deferred revenue in our unaudited condensed consolidated balance sheets; this decrease in cash inflows year over year related to deferred revenue was partially offset by an increase in cash collected from interim milestone billings on a few major customer contracts during the nine months ended September 30, 2026.

Previous wording

The change in net cash used in investing activities was primarily due to increased net purchases of short-term investments in government securities of $113.7 million during the six months ended June 30, 2026 as compared to $31.0 million of net purchases during the six months ended June 30, 2025.

Current wording

The change in net cash used in investing activities was primarily due to increased net purchases of short-term investments in government securities of $100.7 million during the nine months ended September 30, 2026 as compared to $76.5 million of net purchases during the nine months ended September 30, 2025.

Previous wording

We continue to have significant cash outflows for satellite procurement and launch-related services. We also incur labor costs for internally developed capitalized software as we add innovative new services and tools to our BlackSky Spectra software platform and our corporate business and operational systems. The total amount paid for capital expenditures increased during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 primarily due to an increase in cash paid to procure direct materials as well as to build and launch our Gen-3 satellites. We expect cash outflows for satellite production to increase as we continue to build out our satellite constellation.

Current wording

We continue to have significant cash outflows for satellite procurement and launch-related services. We also incur labor costs for internally developed capitalized software as we add innovative new services and tools to our BlackSky Spectra software platform and our corporate business and operational systems. The total amount paid for capital expenditures increased during the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025 primarily due to an increase in cash paid to procure direct materials as well as to build and launch our Gen-3 satellites. We expect cash outflows for satellite production to increase as we continue to build out our satellite constellation.

Previous wording

We received $160.2 million in net cash proceeds from our equity issuances during the six months ended June 30, 2026 as compared to $40.9 million in net proceeds during the six months ended June 30, 2025. Our equity issuances during the six months ended June 30, 2026 consisted of the sale of 4.2 million shares of our Class A common stock under the 2026 and 2025 ATM Agreements, which resulted in $165.0 million in gross proceeds. In comparison, for the six months ended June 30, 2025, we sold 3.7 million shares of our Class A common stock under our 2022 ATM Agreement, which resulted in $42.5 million in gross proceeds. The increase in gross proceeds was the result of an increase in our average stock price during the six months ended June 30, 2026 as compared to the same period in 2025.

Current wording

For the nine months ended September 30, 2026, net cash provided by financing activities was $151.7 million, which is an increase as compared to the same period in 2025. The increase was primarily related to the receipt of $160.0 million in net cash proceeds from our equity issuances during the nine months ended September 30, 2026 as compared to $40.8 million in net proceeds during the nine months ended September 30, 2025. Our equity issuances during the nine months ended September 30, 2026 consisted of the sale of 4.2 million shares of our Class A common stock under the 2026 and 2025 ATM Agreements, which resulted in $165.0 million in gross proceeds. In comparison, for the nine months ended September 30, 2025, we sold 3.7 million shares of our Class A common stock under our 2022 ATM Agreement, which resulted in $42.5 million in gross proceeds. The increase in gross proceeds was the result of an increase in our average stock price during the nine months ended September 30, 2026 as compared to the same period in 2025.