Satellogic Inc.
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
SATL$3.48+20.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-12.
0001874315-26-000016
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001874315-26-000032
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 139 previous paragraphs and 142 current paragraphs.
74 unchanged; 39 reworded; 24 added; 20 removed; 6 previous and 5 current paragraphs rearranged.
Tables are not compared: 8 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
Satellogic builds the infrastructure to power Persistent Global Intelligence (“PGI”): continuous, proactive awareness of the places, assets, and activities that matter. We combine high-cadence satellite collection, best-in-class technology, AI-accelerated workflows, and sovereign-trusted architecture to help customers move from episodic imagery to persistent monitoring programs.
Current report
Our mission is to give governments, intelligence agencies, and commercial customers the persistent awareness they need to make faster, more confident decisions. We serve allied defense and intelligence agencies, civil governments, and commercial markets that need reliable, scalable awareness of change across large portfolios of sites. Through an end-to-end production and operations model, Satellogic provides governments with flexible options across their journey toward sovereign intelligence capabilities. Customers can begin with discovery, expand into persistent monitoring, and build toward dedicated or sovereign-controlled capacity as their mission requirements grow.
Current report
Sovereign-Trusted Architecture
Current report
Aleph Observer will also be a foundational platform as Merlin, the connected, global baseline detection layer of our PGI infrastructure, comes online. It scans the entire planet daily to provide real-time insights and connects into the rest of our constellation to immediately task high-resolution image collection for ultimate decision advantage. Merlin is expected to launch its first satellite, Merlin.01 in the fourth quarter of 2026, and become fully operational in the first half of 2027. We believe Merlin will transform continuous global collection into operational insight, expanding the monitoring model from targeted site coverage toward comprehensive global coverage.
Current report
Persistent Earth Monitoring Contracts and Strategic Collaborations
Current report
In June 2026, the Company announced separate strategic collaborations with SynMax and SpaceKnow to develop and deliver AI-powered geospatial intelligence products for defense, intelligence, and commercial customers. These collaborations build on the Company’s PGI infrastructure, which utilizes its existing high-resolution satellites, on-satellite AI, and the forthcoming Merlin Constellation. The Merlin Constellation is designed to deliver comprehensive global coverage at one-meter resolution as the network expands, with its first launch planned for the fourth quarter of 2026.
Current report
Additionally, on May 26, 2026, the Company announced a one-year agreement valued at more than $18 million with an international defense customer for persistent, high-frequency Earth observation imagery. The agreement represents an expansion from an initial trial to full-scale deployment in under six months.
Current report
Engineering expenses increased $0.7 million, or 32%, to $3.1 million for the three months ended June 30, 2026 from $2.3 million for the three months ended June 30, 2025. The increase was driven primarily by an increase in salaries, wages, and other benefits and stock-based compensation as a result of the Company’s workforce increases in 2026. The increase was also partially driven by increases in professional fees for outsourced engineers and increased office and administrative expenses, and increased travel and related expenses resulting from the Company’s workforce increases in 2026.
Current report
Income tax expense increased by $2.0 million, or 4948%, to an expense of $1.9 million for the three months ended June 30, 2026, from a benefit of $40 thousand for the three months ended June 30, 2025. The increase was driven primarily by greater international tax expense related to unrealized gains on our equity investments in the first six months of 2026.
Current report
Results of Operations
Current report
Revenue
Current report
During the six months ended June 30, 2026, revenue increased $14.2 million, or 181% to $22.0 million from $7.8 million for the six months ended June 30, 2025, driven primarily by a $4.8 million increase in imagery ordered by new and existing Data & Analytics customers (service type) and a $9.4 million increase in Space Systems revenue (primarily product type). Revenue for the six months ended June 30, 2026 included $11.8 million attributable to our Data & Analytics line of business (service type) and $10.3 million attributable to our Space Systems line of business (primarily product type), compared to $7.0 million and $0.8 million respectively, in the prior year.
Current report
Cost of revenue
Current report
Cost of revenue, exclusive of depreciation, increased $1.8 million, or 76%, to $4.3 million for the six months ended June 30, 2026 from $2.4 million for the six months ended June 30, 2025. The increase was driven primarily by higher Space Systems product revenue growth.
Current report
Engineering expenses
Current report
Engineering expenses increased $1.3 million, or 28%, to $6.2 million for the six months ended June 30, 2026 from $4.8 million for the six months ended June 30, 2025. The increase was driven primarily by an increase in salaries, wages, and other benefits and stock-based compensation as a result of the Company’s workforce increases in 2026. The increase was also partially driven by increases in professional fees for outsourced engineers, increased office and administrative expenses, and increased travel and related expenses resulting from the Company’s workforce increases in 2026.
Current report
Selling, general and administrative expenses increased $3.3 million, or 28%, to $15.2 million during the six months ended June 30, 2026, from $11.8 million for the six months ended June 30, 2025. The increase was driven primarily by a $1.8 million increase in salaries, wages, and other benefits due to increased headcount, and increased sales commissions offset by lower employee bonuses. Also contributing to the increase was a $0.8 million increase in stock-based compensation due to a broadened pool of employees receiving stock-based compensation in 2025 and 2026, an increase in travel and related expenses due to increased selling activity in the first half of 2026. These increases were partially offset by a $0.4 million decrease in professional fees due to higher 2025 first half professional fees primarily related to the 2025 Domestication.
Current report
The negative change in fair value of financial instruments of $110.0 million was related to net losses on our financial instruments of $132.7 million for the six months ended June 30, 2026, compared to net losses of $22.7 million for the six months ended June 30, 2025. The change was primarily driven by the remeasurement of the fair value of the Secured Convertible Notes, warrant and earnout liabilities, which were impacted by the increases in our Class A common stock trading price during the six months ended June 30, 2026, compared to a smaller increase in our stock price in the same period in 2025. Additionally, $12 million of the outstanding principal of our Secured Convertible Notes was converted into 10 million shares of our common stock during the six months ended June 30, 2026, resulting in losses from the remeasurement immediately prior to each conversion. The negative change was partially offset by the fair value appreciation of the Company’s equity investment in Officina Stellare, a vendor.
Current report
Other (expense) income, net
Current report
Income tax expense increased by $1.3 million, or 193%, to $2.0 million for the six months ended June 30, 2026, from $0.7 million for the six months ended June 30, 2025. The increase was driven primarily by greater international tax expense related to unrealized gains on our equity investments in the first six months of 2026.
Current report
The Purchaser converted $6.0 million of principal under the Secured Convertible Notes in April 2026 and an additional $6.0 million of principal in May 2026 into 5.0 million and 5.0 million shares of Class A common stock, respectively. The principal owed on the Secured convertible notes at June 30, 2026, was $18.0 million.
Current report
(2) The change is primarily due to timing of payments and billings on new revenue contracts.
Current report
We will cease to be an emerging growth company upon the earliest of the applicable triggering events under Section 2(a)(19) of the Securities Act, including the fifth anniversary of the first sale of our common equity securities pursuant to an effective registration statement. However, because we will be eligible to use the requirements for smaller reporting companies through the end of fiscal year 2026 (discussed below), we will not become an accelerated filer or large accelerated filer as of December 31, 2026. Therefore, the auditor attestation requirement over internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002 will not apply to our Annual Report on Form 10-K for the fiscal year ending December 31, 2026.
Current report
As of June 30, 2026 our public float exceeded $700 million. As a result, we will cease to qualify as a smaller reporting company. However, we will continue to be eligible to use the requirements for smaller reporting companies through the end of fiscal year 2026, including our Annual Report on Form 10-K for fiscal year 2026. Beginning with our Form 10-Q for the first fiscal quarter of 2027, we will be ineligible to use the requirements for smaller reporting companies and, therefore, will be subject to heightened disclosure and compliance obligations. Compliance with these expanded requirements will require our management to devote additional time and resources and will result in increased legal, accounting, and compliance expenses.
Removed paragraphs (20)
Previous report
Satellogic’s mission is to democratize access to geospatial data through its information platform of high-resolution images to help solve the world’s most pressing problems including climate change, energy supply, and food security. Using its patented Earth imaging technology, Satellogic seeks to unlock the power of EO to deliver high-quality, planetary insights at unparalleled value. With more than a decade of experience in space and over 150 years of flight heritage, Satellogic has proven technology and a strong track record of delivering satellites to orbit and high-resolution data to customers at the right price point. We believe our unmatched capacity and scale, our cost leadership and technical superiority, and our non-ITAR (International Traffic in Arms Regulations) design provides us with key competitive advantages.
Previous report
Founded in 2010 by Emiliano Kargieman and Gerardo Richarte, Satellogic is a vertically integrated Earth observation company that designs, manufactures, and operates satellite systems, delivering decision-grade insights at scale to government and commercial customers. Through an end-to-end production and operations model, Satellogic provides governments with flexible options across their journey toward sovereign Earth observation. From access to high-frequency imagery and managed space systems to full satellite ownership, to supporting autonomous data availability and long-term technological independence.
Previous report
Non-ITAR Design
Previous report
Merlin, our AI-First constellation, is expected to launch its first satellite in the fourth quarter of 2026, and be fully operational in the first half of 2027. With Merlin, which is fully funded by existing customer contracts, we expect to leverage AI-powered, on-orbit analytics to deliver near real-time alerts and, through inter-satellite links, task the rest of our constellation to deliver a completely integrated, very high-resolution global broad area monitoring to enterprise and national security customers. In particular, we expect government and D&I customers of our Aleph Observer site monitoring product to be able to extend their monitoring capacity from hundreds of sites per day to an unlimited number of sites, completing the shift from reactive monitoring to proactive intelligence, enabling the identification of emerging threats and anticipating future events, while enterprise customers will be provided foundational data intelligence for their specific use cases where alternative sources of data are currently being used that are difficult to scale and comparatively expensive.
Previous report
As the capacity and cost champions for high-resolution imagery, we offer our customers flexible monitoring and multiple captures per day at low latency. Supported by patented intellectual property and vertical integration, we believe our integrated data & analytics service represents a disruptive solution driven by radical unit economics that creates a considerable competitive moat. With the capabilities and capacity we have in orbit today, we can support a growing number of customers around the world.
Previous report
On January 27, 2026, the Company completed the sale of NewSat-34, a legacy Mark IV-g satellite already in orbit, to High Earth Orbit Robotics Pty Ltd. (“HEO”). This transaction represents the first time the Company has sold a legacy, in-orbit satellite through its Sovereignty Government Program.
Previous report
Registered Direct Offering
Previous report
Selling, general and administrative expenses
Previous report
Depreciation expense
Previous report
Interest income, net
Previous report
Income tax expense
Previous report
Engineering expenses increased $0.6 million, or 24%, to $3.1 million for the three months ended March 31, 2026 from $2.5 million for the three months ended March 31, 2025. The increase was driven primarily by an increase in software expenses, professional fees, and employee compensation including stock-based compensation. Stock-based compensation increased primarily from a broadened pool of employees receiving stock-based compensation in 2025.
Previous report
Selling, general and administrative expenses
Previous report
Depreciation expense
Previous report
Interest income, net
Previous report
Income tax expense
Previous report
Income tax expense decreased by $0.7 million, or 94%, to an expense of $40 thousand for the three months ended March 31, 2026, from expense of $0.7 million for the three months ended March 31, 2025. The decrease was driven primarily by lower expense related to unrecognized tax benefits. The associated liability was fully accrued in a prior period. Also contributing to the decrease was a reserve recorded on a tax receivable in Argentina in the three months ended March 31, 2025 that did not recur in the current period.
Previous report
(2)The change is primarily due to timing of payments and improved collection of our accounts receivable.
Previous report
Section 102(b)(1) of the Jobs Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The Jobs Act provides that a company can choose not to take advantage of the extended transition period and comply with the requirements that apply to non-emerging growth companies, and any such election to not take advantage of the extended transition period is irrevocable.
Previous report
We will also rely on certain reduced reporting and other requirements that are otherwise generally applicable to public companies.
Reworded paragraphs (39)
Previous wording
This integrated approach enables Satellogic to deploy satellites on predictable timelines and operate with capacity to support persistent coverage across large portfolios of sites. Satellogic enables continuous monitoring and alert-driven workflows that help defense and intelligence (“D&I”) agencies, civil governments, and commercial operators move from reactive tasking to proactive decision-making, providing mission-critical data when it is needed.
Current wording
This integrated approach enables Satellogic to deploy satellites on predictable timelines and operate with capacity to support persistent coverage across large portfolios of sites. Satellogic enables continuous monitoring and alert-driven workflows that help customers move from reactive tasking to proactive decision-making, providing mission-critical data when it is needed.
Previous wording
Today’s EO data market is supply-constrained with customers demanding more data at lower costs. With 18 satellites in orbit including 16 operational satellites, one satellite in commissioning and one for testing as of March 31, 2026, we have one of the largest high-resolution constellations commercially available with the ability to significantly leverage existing, in-orbit capabilities as capacity and cost champions.
Current wording
Today’s geospatial data market is supply-constrained with customers demanding more data at lower costs. We operate one of the largest high-resolution constellations commercially available with the ability to significantly leverage existing in-orbit capabilities as capacity and cost champions.
Previous wording
We produce and launch our satellites for a fraction of the cost of our competitors, which is achieved through our vertical integration, in-house manufacturing and an AI-First design philosophy optimized for low mass and rapid production. We design the core components that go into developing and manufacturing our satellites to be mission specific. We manufacture many of our components, but we also partner with third parties to manufacture certain other components to our design specifications. We assemble, integrate and test the components and satellites in our facilities located in a free-trade zone in Montevideo, Uruguay. Additionally, our patent-protected camera design allows us to capture approximately 10x more imagery than our competitors. Our superior capture capacity, coupled with our radical cost leadership, results in industry-leading unit economics. When taken together with the resolution and frequency we are able to deliver, we believe Satellogic is uniquely positioned to drive a meaningful expansion of today’s EO market with persistent monitoring and actionable data.
Current wording
We produce and launch our satellites for a fraction of the cost of our competitors, which is achieved through our vertical integration, in-house manufacturing, and a design philosophy optimized for low mass and rapid production. We design the core components that go into developing and manufacturing our satellites to be mission specific. We manufacture many of our components, but we also partner with third parties to manufacture certain other components to our design specifications. We assemble, integrate and test the components and satellites in our facilities located in a free-trade zone in Montevideo, Uruguay. Additionally, our patent-protected camera design enables us to capture an exceptional volume of imagery from a smallsat form factor distinguishing our collection capabilities from competitors. Our superior capture capacity, coupled with our radical cost leadership, results in industry-leading unit economics. When taken together with the resolution and frequency we are able to deliver, we believe Satellogic is uniquely positioned to drive a meaningful expansion of today’s market with persistent monitoring and actionable data.
Previous wording
We are a U.S.-incorporated company operating without the heavy burden of export controls based on our non-ITAR design and our principal manufacturing location in Montevideo, Uruguay. This allows us to provide unique, disruptively-priced sovereign and defense solutions rapidly with technology and knowledge transfer resulting in local manufacturing capabilities and in-orbit flight heritage.
Current wording
We provide a sovereign-trusted architecture that ensures mission continuity independent of third-party priorities. We believe we are fully compliant with all applicable export regimes, which allows us to provide unique, disruptively-priced sovereign and defense solutions rapidly. This approach enables technology and knowledge transfer resulting in local manufacturing capabilities and in-orbit flight heritage, ensuring our customers retain strategic autonomy over their intelligence infrastructure.
Previous wording
Our strategy is focused along two distinct business lines: Data & Analytics (including tasking and archived data, Aleph Observer and Constellation as a Service “CaaS”), and Space Systems. These two business lines will allow us to serve the existing EO market and begin to democratize access to a host of new EO customers.
Current wording
Our strategy is focused along two distinct business lines: Data & Analytics and Space Systems. These two business lines will allow us to serve the existing market and begin to democratize access to a host of new customers. We expect that the Data & Analytics business will continue to represent our most predictable revenue stream, as our business model moves from episodic imagery transactions toward persistent monitoring programs.
Previous wording
Our newest product, Aleph Observer, represents a shift in how Earth observation is procured and used. Rather than relying on episodic tasking and best-effort imagery delivery, it enables ongoing monitoring of hundreds of sites daily in a customer’s area of interest, with predictable delivery over time. This allows teams to detect and assess change without repeated tasking, helping reduce operational friction and increase confidence in what was observed and what was not. Aleph Observer will also be a foundational platform within our Data & Analytics business as Merlin, our AI-First constellation, comes online unlocking the ability to go from monitoring hundreds of sites to an unlimited number, potentially millions of sites daily in very high-resolution, constituting a true AI-powered platform for persistent geospatial intelligence at a global scale. By featuring built-in analytics, the Aleph Observer platform allows users to quickly evaluate large volumes of catalogued imagery, triage and summarize changes over time, prioritize analysts’ workflows and create a historical record and an essential training ground for AI models to power the next generation of geospatial intelligence. We believe this evolution will enable government and defense customers to shift from reactive monitoring to proactive intelligence in identifying emerging threats, while simultaneously providing commercial enterprises with a scalable, cost-effective foundational data layer that replaces traditional, comparatively expensive alternative data sources.
Current wording
Our newest product, Aleph Observer, operationalizes persistent monitoring. Rather than relying on episodic tasking and best-effort imagery delivery, it enables ongoing monitoring of hundreds of sites daily in a customer’s area of interest, with predictable delivery over time. This allows teams to detect and assess change without repeated tasking, helping reduce operational friction and increase confidence.
Previous wording
Our Space Systems business offers unique solutions to sovereign customers or local partners with their own EO capabilities and in-orbit flight heritage at a disruptive price by leveraging our vertical integration and non-ITAR design. With rapid technology and knowledge transfer, as quickly as three to five months, our customers own, assemble and integrate their own satellites with operational support provided by us in their local AIT (Assembly Integration and Test) facility. We anticipate our Data & Analytics line of business will augment the capabilities of many of the Space Systems customers.
Current wording
Our Space Systems business offers unique solutions to sovereign customers or local partners with their own capabilities and in-orbit flight heritage at a disruptive price. With rapid technology and knowledge transfer, as quickly as three to five months, our customers own, assemble and integrate their own satellites with operational support provided by us in their local AIT (Assembly Integration and Test) facility.
Previous wording
On January 26, 2026, the Company decreased the amount of Class A common stock available under its then current at-the-market program to $0.00 (the “Prior ATM Program”). On March 30, 2026, the Company entered into a new Sales Agreement by and among CF&Co., Craig-Hallum Capital Group LLC, Northland Securities, Inc. and Roth Capital Partners, LLC, as sales agents (the “Sales Agreement”), under which the Company may offer and sell shares of its Class A common stock having an aggregate offering price of up to $50.0 million from time to time (the “Current ATM Program” and, together with the Prior ATM Program, the “ATM Program”).
Current wording
On January 26, 2026, the Company decreased the amount of Class A common stock available under its then current at-the-market program to $0.00 (the “Prior ATM Program”). On March 30, 2026, the Company entered into a new Sales Agreement by and among CF&Co., Craig-Hallum Capital Group LLC, Northland Securities, Inc. and Roth Capital Partners, LLC, as sales agents (the “Sales Agreement”), under which the Company may offer and sell shares of its Class A common stock having an aggregate offering price of up to $50.0 million from time to time (the “Current ATM Program” and, together with the Prior ATM Program, the “ATM Program”). No shares were sold under the Current ATM Program during the three or six months ended June 30, 2026.
Previous wording
The following briefly describes the components of revenue and expenses as presented in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).
Current wording
The following briefly describes the components of revenue and expenses as presented in our Condensed Consolidated Statements of Operations and Comprehensive Loss.
Previous wording
We are an early-stage revenue company with limited commercial operations, and our activities to date have been conducted in South America, Asia, Europe and North America. Currently, we conduct business through one operating segment. The Condensed Consolidated Financial Statements as of March 31, 2026 and December 31, 2025, and for the three months then ended (the “Condensed Consolidated Financial Statements”) have been prepared in accordance with U.S. GAAP and the rules and regulations of the SEC.
Current wording
We are an early-stage revenue company with limited commercial operations, and our activities to date have been conducted in South America, Asia and Asia Pacific, Europe and North America. Currently, we conduct business through one operating segment. The Condensed Consolidated Financial Statements as of June 30, 2026 and December 31, 2025, and for the three and six months then ended June 30, 2026 and 2025 (the “Condensed Consolidated Financial Statements”) have been prepared in accordance with U.S. GAAP and the rules and regulations of the SEC.
Previous wording
The Condensed Consolidated Financial Statements include our accounts and those of our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Condensed Consolidated Financial Statements are presented in United States thousands of dollars (hereinafter “U.S. dollars” or “$”), unless stated otherwise.
Current wording
The Condensed Consolidated Financial Statements include our accounts and those of our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Condensed Consolidated Financial Statements are presented in thousands of United States dollars (hereinafter “U.S. dollars” or “$”), unless stated otherwise.
Previous wording
Revenue is currently derived from our Data & Analytics and Space Systems business lines. We sell our imagery to Data & Analytics customers as a single task and recognize revenue at a point-in-time, while we enter into arrangements with CaaS customers that provide a stand-ready commitment and recognize revenue over time. For our Space Systems business lines, we sell our satellites and related products directly to customers and typically recognize revenue at a point in time.
Current wording
Revenue is currently derived from our Data & Analytics and Space Systems business lines. We sell our imagery to Data & Analytics customers as a single task and recognize revenue at a point-in-time classified as service revenue, while we enter into arrangements with CaaS customers that provide a stand-ready commitment and recognize that service revenue over time. For our Space Systems business lines, we sell our satellites and related products directly to customers and typically recognize revenue at a point in time. Space Systems revenue is primarily product related; however, certain Space Systems’ contracts also include service-related performance obligations.
Previous wording
Cost of revenue includes direct costs related to ground stations, cloud and infrastructure costs and digital image processing. Additionally, the cost of revenue related to sales of our satellites primarily includes bill of materials, launch costs, personnel costs, insurance, and other costs associated with the manufacturing of the satellite. For in-orbit satellite sales, cost of revenue represents the net book value of assets reclassified from property, plant, and equipment.
Current wording
Cost of revenue includes direct costs related to ground stations, cloud and infrastructure costs and digital image processing. Additionally, the cost of revenue related to sales of our satellites primarily includes bill of materials, launch costs, personnel costs, insurance, and other costs associated with the manufacturing of the satellite. For in-orbit satellite sales, cost of revenue represents the net book value of assets reclassified from property and equipment.
Previous wording
Selling, general and administrative expenses consist of the costs related to salaries, wages and other benefits, professional fees and stock-based compensation expense related to our selling and back-office functions. Also included in general and administrative expenses are expense for estimated credit losses on accounts receivable and other administrative expenses.
Current wording
Selling, general and administrative expenses consist of the costs related to salaries, wages and other benefits, professional fees and stock-based compensation expense related to our selling and support functions. Also included in general and administrative expenses are expense for estimated credit losses on accounts receivable and other administrative expenses.
Previous wording
Our Secured Convertible Notes, warrant liabilities, earnout liabilities and OS investments are subject to remeasurement to fair value at each balance sheet date. Changes in the fair value of these liabilities are recorded to Change in fair value of financial instruments in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Since our Secured Convertible Notes are valued utilizing the fair value option, interest expense on the Secured Convertible Notes is also included.
Current wording
Our Secured Convertible Notes, warrant liabilities, earnout liabilities and OS investments are subject to remeasurement to fair value at each balance sheet date. Changes in the fair value of these liabilities are recorded to Change in fair value of financial instruments in the Condensed Consolidated Statements of Operations and Comprehensive Loss. Since our Secured Convertible Notes are valued utilizing the fair value option, interest expense on the Secured Convertible Notes is also included.
Previous wording
During the three months ended March 31, 2026, revenue increased by $2.7 million, or 80% to $6.1 million from $3.4 million for the three months ended March 31, 2025, driven primarily by a $1.6 million increase in imagery ordered by new and existing Data & Analytics customers and a $1.1 million increase in revenue generated from the Space Systems business line. Revenue for the three months ended March 31, 2026 included $4.6 million attributable to our Data & Analytics line of business and $1.5 million attributable to our Space Systems line of business compared to $3.0 million and $0.4 million, respectively, in the prior year.
Current wording
During the three months ended June 30, 2026, revenue increased by $11.5 million, or 259% to $15.9 million from $4.4 million for the three months ended June 30, 2025, driven primarily by a $3.2 million increase in imagery ordered by new and existing Data & Analytics customers (service type) and an $8.3 million increase in revenue generated from the Space Systems business line (primarily product type). Revenue for the three months ended June 30, 2026 included $7.1 million attributable to our Data & Analytics line of business (service type) and $8.8 million attributable to our Space Systems line of business (primarily product type) compared to $4.0 million and $0.5 million, respectively, in the prior year.
Previous wording
Cost of sales, exclusive of depreciation, increased $0.2 million, or 17%, to $1.5 million for the three months ended March 31, 2026 from $1.2 million for the three months ended March 31, 2025. The increase was driven primarily by higher ground station costs.
Current wording
Cost of revenue, exclusive of depreciation, increased $1.6 million, or 137%, to $2.8 million for the three months ended June 30, 2026 from $1.2 million for the three months ended June 30, 2025. The increase was driven primarily by higher Space Systems costs driven by product revenue growth.
Previous wording
Selling, general and administrative expenses increased $0.1 million, or 1%, to $6.5 million during the three months ended March 31, 2026, from $6.5 million for the three months ended March 31, 2025. The increase was driven primarily by an increase in salaries, wages, and other benefits as a result of the Company increasing its workforce as the Company anticipates growth in 2026, increased stock-based compensation due to a broadened pool of employees receiving stock-based compensation, and an increase in other selling and administrative expenses. These increases were partially offset by a $0.8 million decrease in professional fees consisting mainly of legal fees incurred for the U.S. domestication in the three months ended March 31, 2025 and increased stock-based compensation forfeitures.
Current wording
Selling, general and administrative expenses increased $3.3 million, or 61%, to $8.6 million during the three months ended June 30, 2026, from $5.4 million for the three months ended June 30, 2025. The increase was driven primarily by an increase in salaries, wages, and other benefits as a result of the Company increasing its workforce, increased stock-based compensation due to a broadened pool of employees receiving stock-based compensation in 2025 and 2026, and an increase in travel and related expenses and other selling and administrative expenses that included increased banking fees related to letters of credit for contract guaranties. Travel increased due to the increased business and selling activities in the second quarter of 2026. Also contributing to the increase was a $0.5 million increase in professional fees consisting mainly of increases in legal, contractor and consulting fees.
Previous wording
Depreciation expense decreased by $1.3 million, or 48%, to $1.4 million for the three months ended March 31, 2026, as compared to $2.7 million for the three months ended March 31, 2025. The decrease was due primarily to a reduction in the number of satellites with depreciable useful lives.
Current wording
Depreciation expense decreased by $0.7 million, or 38%, to $1.1 million for the three months ended June 30, 2026, as compared to $1.8 million for the three months ended June 30, 2025. The decrease was due primarily to a reduction in the number of satellites with depreciable useful lives.
Previous wording
Interest income, net increased $0.8 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The increase was due to increased cash and cash equivalents following the Company’s equity raises in the fourth quarter of 2025 and the first quarter of 2026.
Current wording
Interest income, net increased $0.7 million, or 252% to $1.0 million for the three months ended June 30, 2026 as compared to $0.3 million for the three months ended June 30, 2025. The increase was due to increased cash and cash equivalents following the Company’s equity raises in the fourth quarter of 2025 and the first quarter of 2026.
Previous wording
The negative change in fair value of financial instruments of $90.7 million was related to net losses on our financial instruments of $113.0 million for the three months ended March 31, 2026, compared to net losses of $22.4 million for the three months ended March 31, 2025. The change was primarily driven by the remeasurement of the fair value of the Secured Convertible Notes, warrant, and earnout liabilities, which were impacted by the increases in our Class A common stock trading price during the three months ended March 31, 2026. This increase in our stock price was more significant in the three months ended March 31, 2026, compared to the same period in 2025.
Current wording
The negative change in fair value of financial instruments of $19.4 million was related to net losses on our financial instruments of $19.7 million for the three months ended June 30, 2026, compared to net losses of $0.3 million for the three months ended June 30, 2025. The change was primarily driven by the remeasurement of the fair value of the Secured Convertible Notes, warrant, and earnout liabilities, which were impacted by the increases in our Class A common stock trading price during the three months ended June 30, 2026, compared to a smaller increase in our stock price in the same period in 2025. Additionally, $12 million of the outstanding principal of our Secured Convertible Notes was converted into 10 million shares of our common stock during the three months ended June 30, 2026, resulting in losses from the remeasurement immediately prior to each conversion. The negative change was partially offset by the fair value appreciation of the Company’s equity investment in Officina Stellare, a vendor.
Previous wording
Other income (expense), net increased $0.3 million, or 192%, to $0.2 million of income for the three months ended March 31, 2026, compared to $0.2 million of expense for the three months ended March 31, 2025. The net increase in income was driven primarily by foreign currency exchange net gains for the three months ended March 31, 2026 compared to foreign currency exchange net losses in the three months ended March 31, 2025.
Current wording
Other income (expense), net increased $0.7 million, or 179%, to $0.3 million of income for the three months ended June 30, 2026, compared to $0.4 million of expense for the three months ended June 30, 2025. The net increase in income was driven primarily by foreign currency exchange net gains for the three months ended June 30, 2026 compared to foreign currency exchange net losses in the three months ended June 30, 2025.
Previous wording
We define Non-GAAP EBITDA as net loss excluding interest income, net, income taxes, depreciation and amortization. Interest income, net is interest income less interest expense. We did not incur amortization expense during the three months ended March 31, 2026 and 2025.
Current wording
We define Non-GAAP EBITDA as net loss excluding interest income, net, income taxes, depreciation and amortization. Interest income, net is interest income less interest expense. We did not incur amortization expense during the three and six months ended June 30, 2026 and 2025.
Previous wording
We define Non-GAAP Free Cash Flow as net cash used in operating activities less payments for capital expenditures.
Current wording
We define Non-GAAP Free Cash Flow as net cash used in operating activities, less payments for capital expenditures, plus proceeds from the sale of in-orbit satellites.
Previous wording
Our cash and cash equivalents are maintained in highly liquid investments with remaining maturities of 90 days or less at the time of purchase. As of March 31, 2026, we had $121.9 million in cash and cash equivalents on hand and total Secured Convertible Note principal and accrued interest outstanding of $30.1 million.
Current wording
Our cash and cash equivalents are maintained in highly liquid investments with remaining maturities of 90 days or less at the time of purchase. As of June 30, 2026, we had $112.8 million in cash and cash equivalents on hand and total Secured Convertible Note principal and accrued interest outstanding of $18.7 million.
Previous wording
Since our formation, we have devoted substantial effort and capital resources to the development of our satellite constellation and image technology. As of March 31, 2026, we had an accumulated deficit of $523.2 million, and for the three months ended March 31, 2026, we had net cash provided by operating activities of $0.2 million.
Current wording
Since our formation, we have devoted substantial effort and capital resources to the development of our satellite constellation and image technology. As of June 30, 2026, we had an accumulated deficit of $543.2 million, and for the six months ended June 30, 2026, we had net cash used by operating activities of $8.5 million.
Previous wording
On April 12, 2024, the Company, Nettar, and Holder Representative entered into the Note Purchase Agreement with the Purchaser, pursuant to which Nettar agreed to issue the Secured Convertible Notes in the aggregate principal amount of $30.0 million to the Purchaser. The net proceeds from the issuance of the Secured Convertible Notes, after deducting transaction fees and other debt issuance costs, was approximately $27.6 million. The Secured Convertible Notes initially bear interest at a rate of SOFR plus 6.50% per annum, subject to an additional 4.0% per annum if certain events of default occur and are continuing. The Secured Convertible Notes are guaranteed by the Company and each of the Company’s material subsidiaries (other than Nettar), and are secured by substantially all of the Company’s and its subsidiaries’ assets (including all of its intellectual property). Nettar may issue additional Secured Convertible Notes under the terms thereof, provided the aggregate principal outstanding amount does not exceed $50.0 million. The Secured Convertible Notes mature on April 12, 2028.
Current wording
On April 12, 2024, the Company, Nettar, and Holder Representative entered into the Note Purchase Agreement with the Purchaser, pursuant to which Nettar agreed to issue the Secured Convertible Notes in the aggregate principal amount of $30.0 million to the Purchaser. The net proceeds from the issuance of the Secured Convertible Notes, after deducting transaction fees and other debt issuance costs, were approximately $27.6 million. The Secured Convertible Notes initially bear interest at a rate of SOFR plus 6.50% per annum, subject to an additional 4.0% per annum if certain events of default occur and are continuing. The Secured Convertible Notes are guaranteed by the Company and each of the Company’s material subsidiaries (other than Nettar), and are secured by substantially all of the Company’s and its subsidiaries’ assets (including all of its intellectual property). Nettar may issue additional Secured Convertible Notes under the terms thereof, provided the aggregate principal outstanding amount does not exceed $50.0 million. The Secured Convertible Notes mature on April 12, 2028.
Previous wording
On October 15, 2025, the Company entered into an Underwriting Agreement (the “Underwriting Agreement”) with CF&Co., as representative of the underwriters named therein, in connection with an underwritten public offering of
Current wording
On October 15, 2025, the Company entered into an Underwriting Agreement (the “Underwriting Agreement”) with CF&Co., as representative of the underwriters named therein, in connection with an underwritten public offering of 27,692,308 shares of the Company’s Class A common stock, par value $0.0001 per share, at a public offering price of $3.25 per share.
Previous wording
Under the terms of the Underwriting Agreement, the Company granted the underwriters a 30-day option to purchase up to 4,153,846 additional shares of Class A common stock. The gross proceeds to the Company from the offering are $90 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company. All of the shares were sold by the Company. The offering closed on October 17, 2025.
Current wording
Under the terms of the Underwriting Agreement, the Company granted the underwriters a 30-day option to purchase up to 4,153,846 additional shares of Class A common stock. The gross proceeds to the Company from the offering were $90 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company. All of the shares were sold by the Company. The offering closed on October 17, 2025.
Previous wording
As of March 31, 2026, the Company had outstanding letters of credit totaling approximately $7.9 million issued to various beneficiaries to guarantee performance/contractual obligations. These letters of credit are primarily denominated in euros and U.S. dollars. As of March 31, 2026, no amounts have been drawn against these letters of credit, and the Company believes the likelihood of a material draw is remote.
Current wording
As of June 30, 2026, the Company had outstanding letters of credit totaling approximately $9.5 million issued to various beneficiaries to guarantee performance/contractual obligations. These letters of credit are primarily denominated in euros and U.S. dollars. As of June 30, 2026, no amounts have been drawn against these letters of credit, and the Company believes the likelihood of a material draw is remote.
Previous wording
Currently, we primarily rely on our existing cash and cash equivalents balances to fund our business, including capital expenditures, working capital requirements, and anticipated interest payments. Our current and future revenue depends primarily on our ability to: (i) utilize our available satellite capacity with new and existing customers and (ii) enter into new commercial relationships with new customers. There can be no assurance that we will attain positive cash flow from operations. We have experienced, and may continue to experience, negative cash flows, and if we continue to experience negative cash flows, our existing cash and cash equivalents balances may be reduced, and we may be required to reduce capital expenditures, or make other changes to our operating structure, all of which could have a material adverse effect on our business.
Current wording
Currently, we primarily rely on our existing cash and cash equivalents to fund our business, including capital expenditures, working capital requirements, and anticipated interest payments. Our current and future revenue depends primarily on our ability to: (i) utilize our available satellite capacity with new and existing customers and (ii) enter into new commercial relationships with new customers. There can be no assurance that we will attain positive cash flow from operations. We have experienced, and may continue to experience, negative cash flows, and if we continue to experience negative cash flows, our existing cash and cash equivalents balances may be reduced, and we may be required to reduce capital expenditures, or make other changes to our operating structure, all of which could have a material adverse effect on our business.
Previous wording
The following table summarizes our cash flow information for the three months ended March 31, 2026 and 2025.
Current wording
The following table summarizes our cash flow information for the six months ended June 30, 2026 and 2025.
Previous wording
The cash flows provided by (used in) operating activities to date have been primarily comprised of costs and expenses related to development of our products, payroll, fluctuations in accounts payable and other current assets and liabilities. As we continue to expand our commercial operations, we anticipate our cash used in operating activities will remain elevated until we begin to generate material cash flows from the business.
Current wording
The cash flows used in operating activities to date have been primarily comprised of costs and expenses related to development of our products, payroll, fluctuations in accounts payable and other current assets and liabilities. As we continue to expand our commercial operations, we anticipate our cash used in operating activities will remain elevated until we begin to generate material cash flows from the business.
Previous wording
(4) The change is primarily due to timing of prepaid insurance payments.
Current wording
(4) The change is primarily due to the recording of a $3.0 million contract asset in 2026 and the timing of prepaid insurance payments.
Previous wording
(6)The change is primarily due to timing of payments, net of an increase in contract liabilities for new revenue contracts.
Current wording
(6)The change is primarily due to an increase in contract liabilities for new revenue contracts.
Previous wording
Net cash used in investing activities $5.6 million for the three months ended March 31, 2026, increased compared to $1.9 million for the three months ended March 31, 2025. The Company has increased its purchases of equipment as we build our Merlin constellation.
Current wording
Net cash used in investing activities of $2.9 million for the six months ended June 30, 2026, increased compared to $2.7 million for the six months ended June 30, 2025. The Company has increased its purchases of equipment as we build our Merlin constellation.
Previous wording
Net cash provided by financing activities was $32.5 million for the three months ended March 31, 2026 compared to net cash provided by financing activities of $1.7 million for the three months ended March 31, 2025, which resulted primarily from proceeds from stock issuances under the Registered Direct Offering in the first three months of 2026 compared to the Prior ATM Program and proceeds from exercise of stock options in the three months ended March 31, 2025.
Current wording
Net cash provided by financing activities was $32.3 million for the six months ended June 30, 2026 compared to net cash provided by financing activities of $21.4 million for the six months ended June 30, 2025, which resulted primarily from greater proceeds from stock issuances under the Registered Direct Offering in the first six months of 2026 compared to the proceeds from the prior ATM Program and prior year registered direct offering, partially offset by lower proceeds from exercise of stock options in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Previous wording
We are an “emerging growth company” as defined in Section 2(a) of the Securities Act and have elected to take advantage of the benefits of the extended transition period for new or revised financial accounting standards. We expect to remain an emerging growth company at least through the end of the 2026 fiscal year and we expect to continue to take advantage of the benefits of the extended transition period, although we may decide to early adopt such new or revised accounting standards to the extent permitted by such standards. This may make it difficult or impossible to compare our financial results with the financial results of another public company that is either not an emerging growth company or is an emerging growth company that has chosen not to take advantage of the extended transition period exemptions because of the potential differences in accounting standards used.
Current wording
We are an “emerging growth company” as defined in Section 2(a) of the Securities Act and have elected to take advantage of the benefits of the extended transition period for new or revised financial accounting standards. This may make it difficult or impossible to compare our financial results with the financial results of another public company that is either not an emerging growth company or is an emerging growth company that has chosen not to take advantage of the extended transition period exemptions because of the potential differences in accounting standards used.
Previous wording
We are also a “smaller reporting company” as defined in Item 10(f)(1) of Regulation S-K, meaning that the market value of our stock held by non-affiliates is less than $700 million and our annual revenue was less than $100 million during the most recently completed fiscal year. We may continue to be a smaller reporting company if either (i) the market value of our stock held by non-affiliates is less than $250 million or (ii) our annual revenue is less than $100 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than $700 million. If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company we may choose to present only the two most recent fiscal years of audited financial statements in our Annual Report on Form 10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.
Current wording
We are also a “smaller reporting company” as defined in Item 10(f)(1) of Regulation S-K. As a smaller reporting company, we may choose to present only the two most recent fiscal years of audited financial statements in our Annual Report on Form 10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Comparison of Results for the six months ended June 30, 2026 and 2025
Current report — wording carried from elsewhere
The following table summarizes our results of operations for the six months ended June 30, 2026 and 2025.
Current report — wording carried from elsewhere
Depreciation expense decreased by $2.0 million, or 44%, to $2.5 million for the six months ended June 30, 2026, as compared to $4.5 million for the six months ended June 30, 2025. The decrease was due primarily to a reduction in the number of satellites with depreciable useful lives.
Current report — wording carried from elsewhere
Interest income, net increased by $1.5 million or 324% to $2.0 million for the six months ended June 30, 2026 as compared to $0.5 million for the six months ended June 30, 2025. The increase was due to increased cash and cash equivalents following the Company’s equity raises in the fourth quarter of 2025 and the first quarter of 2026.
Current report — wording carried from elsewhere
Other (expense) income, net increased $1.0 million, or 183%, to $0.5 million of income for the six months ended June 30, 2026, compared to $0.5 million of expense for the six months ended June 30, 2025. The increase was driven primarily by foreign currency exchange net gains for the six months ended June 30, 2026 compared to foreign currency exchange net losses for the six months ended June 30, 2025.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
We expect that the Data & Analytics business will continue to represent our most predictable revenue stream, and we anticipate that it will be a primary driver of the business going forward alongside Space Systems.
Previous report — wording carried elsewhere
On January 26, 2026, the Company entered into a share purchase agreement with certain institutional purchasers, pursuant to which the Company agreed to issue and sell in a registered direct offering (the “Registered Direct Offering”) 7,399,578 shares of the Company’s Class A common stock, par value $0.0001 per share, at an offering price of $4.73 per share.
Previous report — wording carried elsewhere
The gross proceeds to the Company from the offering were approximately $35 million, before deducting placement agent fees and estimated offering expenses payable by the Company. The offering closed on January 27, 2026.
Previous report — wording carried elsewhere
Change in fair value of financial instruments
Previous report — wording carried elsewhere
Change in fair value of financial instruments
Previous report — wording carried elsewhere
27,692,308 shares of the Company’s Class A common stock, par value $0.0001 per share, at a public offering price of $3.25 per share.