Satellogic Inc.
For the period ended Sep 30, 2026. Filed Nov 10, 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.
Sep 30, 2026 · Filed Nov 10, 2026
SATL$3.90-1.6%Stored close · as of Nov 10, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-10.
0001874315-26-000058
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 142 previous paragraphs and 138 current paragraphs.
87 unchanged; 37 reworded; 14 added; 14 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 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 (14)
Current report
Appointment of President
Current report
Financing Activities
Current report
Cost of revenue, exclusive of depreciation, increased $2.4 million, or 202%, to $3.5 million for the three months ended September 30, 2026 from $1.2 million for the three months ended September 30, 2025. The increase was driven primarily by a $1.4 million increase in the cost of Space Systems revenue (primarily product revenue), which was directly attributable to the costs associated with the sale of satellites during the period. Furthermore, the cost of Data & Analytics revenue (service revenue) increased by $1.0 million, due primarily to higher cloud computing and ground station costs to support our growing service volume.
Current report
Engineering expenses increased $1.2 million, or 45%, to $3.8 million for the three months ended September 30, 2026 from $2.6 million for the three months ended September 30, 2025. The increase was primarily to support the continued expansion of our PGI infrastructure, which includes the development of our Merlin constellation, the continued support of our NewSat constellation and the commercial ramp-up of our Space Systems business line. Cost drivers include a $0.8 million increase in personnel costs, reflecting the expansion of our technical workforce. Additionally, professional service fees for outsourced engineering increased by $0.3 million alongside higher clean room, operational travel, and office and administrative costs.
Current report
Selling, general and administrative expenses increased $3.4 million, or 54%, to $9.9 million during the three months ended September 30, 2026, from $6.4 million for the three months ended September 30, 2025. This increase reflects the continued expansion of our operations and was primarily driven by a $2.4 million increase in personnel costs. This workforce expansion was strategically focused on scaling our global go-to-market capabilities, as well as strengthening our corporate infrastructure workforce. Furthermore, we incurred higher operational travel, recruiting, marketing, and office and administrative expenses, which were required to support these heightened commercial and organizational activities.
Current report
The positive change in fair value of financial instruments of $18.1 million was related to net gains on our financial instruments of $30.0 million for the three months ended September 30, 2026, compared to net gains of $11.9 million for the three months ended September 30, 2025. The change was primarily driven by larger gains on warrant and earnout liabilities (reflecting lower liability) whose exercise prices exceeded the market price of our common stock as they approached their first-quarter 2027 expiration dates.
Current report
During the nine months ended September 30, 2026, revenue increased $26.6 million, or 232% to $38.1 million from $11.5 million for the nine months ended September 30, 2025. This growth was driven primarily by an $8.1 million increase in Data & Analytics revenue (service revenue), reflecting increased contract volumes and task orders from new and existing customers. Additionally, Space Systems product revenue increased by $17.5 million generated by the successful delivery of satellites and Space Systems service revenue increased $1.0 million as we continued ramp-up of our Space Systems line of business. Revenue for the nine months ended September 30, 2026 included $18.3 million attributable to our
Current report
Data & Analytics line of business and $19.8 million attributable to our Space Systems line of business, compared to $10.1 million and $1.3 million, respectively, in the prior year.
Current report
Cost of revenue, exclusive of depreciation, increased $4.2 million, or 117%, to $7.8 million for the nine months ended September 30, 2026 from $3.6 million for the nine months ended September 30, 2025. The increase was driven primarily by a $2.6 million increase in the cost of Space Systems revenue (primarily product revenue), which was directly attributable to the costs associated with the sale of satellites during the period. Furthermore, the cost of Data & Analytics revenue (service revenue) increased by $1.6 million, due to higher cloud computing and ground station costs to support our growing service volume.
Current report
Engineering expenses increased $2.5 million, or 34%, to $10.0 million for the nine months ended September 30, 2026 from $7.4 million for the nine months ended September 30, 2025. The increase was primarily to support the continued expansion of our PGI infrastructure, which includes the development of our Merlin constellation, the continued support of our NewSat constellation and the commercial ramp-up of our Space Systems business line. Cost drivers include a $1.3 million increase in personnel costs, reflecting the expansion of our technical workforce. Additionally, professional service fees for outsourced engineering increased by $0.5 million alongside higher clean room, operational travel, and office and administrative costs.
Current report
Selling, general and administrative expenses increased $6.7 million, or 37%, to $25.0 million during the nine months ended September 30, 2026, from $18.3 million for the nine months ended September 30, 2025. This increase reflects the continued expansion of our operations and was primarily driven by a $4.9 million increase in personnel costs. This workforce expansion was strategically focused on scaling our global go-to-market capabilities, as well as strengthening our corporate infrastructure workforce. Furthermore, we incurred higher operational travel, recruiting, marketing, and office and administrative expenses, which were required to support these heightened commercial and organizational activities.
Current report
(3) The change is due to the inventory classification of satellites sold during 2026.
Current report
(4) The change is primarily due to the $1.8 million increase in contract assets in 2026 and the expiration of our OS warrants.
Current report
Net cash used in investing activities of $4.2 million for the nine months ended September 30, 2026, increased compared to $4.0 million for the nine months ended September 30, 2025. The Company has increased its purchases of property and equipment to $17.4 million to support our build and launch of satellites and to develop our Merlin constellation, partially offset by $13.2 million in proceeds from sales of in-orbit satellites, which were originally intended for our internal constellation and thus were recorded as capital expenditures rather than inventory, precluding us from reflecting these sales in operating activities.
Removed paragraphs (14)
Previous report
Appointment of Strategic Advisor
Previous report
ATM Financing Facility
Previous report
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 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.
Previous report
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 report
Other income (expense), net
Previous 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.
Previous report
Cost of revenue
Previous 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.
Previous 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.
Previous 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.
Previous report
(3) The change is due to inventory purchases for Space Systems satellite builds.
Previous report
(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 report
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.
Reworded paragraphs (37)
Previous wording
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 wording
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. We launched the first Merlin satellite, Merlin.01 on October 1, 2026, and the satellite is stable and performing as expected. We expect the Merlin Constellation to become operational in the second 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.
Previous wording
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 wording
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 the first satellite of the new constellation successfully launched in October 2026.
Previous wording
On March 25, 2026, the Company announced that Vice Admiral (VADM) Frank D. Whitworth III, USN (Ret.) has joined the company as a Strategic Advisor.
Current wording
On September 4, 2026, the Company announced that Vice Admiral (VADM) Frank D. Whitworth III, USN (Ret.) was appointed as the Company’s President.
Previous wording
In his role as Strategic Advisor, VADM Whitworth will advise Satellogic on strategic engagement with global customers, the development of the Company’s product and technology roadmap, and the integration of high-frequency Earth Observation into modern intelligence architectures.
Current wording
In his role as President, VADM Whitworth will help lead Satellogic’s strategic engagement with global customers, the development of the Company’s product and technology roadmap, and the integration of high-frequency Earth Observation into modern intelligence architectures.
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”). No shares were sold under the Current ATM Program during the three or six months ended June 30, 2026.
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 nine months ended September 30, 2026, and the full $50 million remains available under the Current ATM Program.
Previous wording
More specifically, we believe some of our key opportunities include the continued adoption of our high-resolution EO images, primarily with D&I customers within the U.S. government and allied countries. Additionally, the increase in market adoption of next generation high resolution space system (satellite) sales can also positively impact the future performance of our business. However, long and complex sales cycles, which typically accompany government and satellite program sales transactions, can impact our performance. Furthermore, as we are dependent on a small number of customers for a large portion of our revenue, the loss of one or more of our major customers could have a material adverse effect on our business, financial condition, and results of operations.
Current wording
More specifically, we believe some of our key opportunities include the continued adoption of our high-resolution EO images, primarily with Defense and Intelligence (“D&I”) customers within the U.S. government and allied countries. Additionally, the increase in market adoption of next generation high resolution Space Systems (satellite) sales can also positively impact the future performance of our business. However, long and complex sales cycles, which typically accompany government and satellite program sales transactions, can impact our performance. Furthermore, as we are dependent on a small number of customers for a large portion of our revenue, the loss of one or more of our major customers could have a material adverse effect on our business, financial condition, and results of operations.
Previous wording
In addition, we believe the Domestication provides greater visibility to investors and customers, particularly as we pursue U.S. government D&I-related contracts, and our success in leveraging this structure change will also be a key factor in our future operating results. However, there can be no assurance that the Domestication will allow us to successfully obtain such contracts or resolve other risks related to competing for government contracts.
Current wording
In addition, we believe the Domestication provides greater visibility to investors and customers, particularly as we continue to pursue U.S. government D&I-related contracts, and our success in leveraging this structure change is a key factor in our future operating results. However, there can be no assurance that the Domestication will allow us to successfully obtain such contracts or resolve other risks related to competing for government contracts.
Previous wording
The following briefly describes the components of revenue and expenses as presented in our Condensed Consolidated Statements of Operations and Comprehensive Loss.
Current wording
The following briefly describes the components of revenue and expenses as presented in our Condensed Consolidated Statements of Operations and Comprehensive Income (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 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.
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 Pacific, Europe, the Middle East and North Africa, and North America. Currently, we conduct business through one operating segment. The Condensed Consolidated Financial Statements as of September 30, 2026 and December 31, 2025, and for the three and nine months ended September 30, 2026 and 2025, have been prepared in accordance with U.S. GAAP and the rules and regulations of the SEC.
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 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.
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 we provide subscription-based services and a persistent global intelligence capability via our Aleph Observer product line 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
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.
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 Income (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 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.
Current wording
During the three months ended September 30, 2026, revenue increased by $12.4 million, or 342% to $16.0 million from $3.6 million for the three months ended September 30, 2025. This growth was driven primarily by a $3.4 million increase in Data & Analytics revenue (service revenue), reflecting increased contract volumes and task orders from new and existing customers. Additionally, Space Systems product revenue increased by $8.4 million generated by the successful delivery of a satellite and Space Systems service revenue increased $0.6 million as we continued the ramp-up of our Space Systems line of business. Revenue for the three months ended September 30, 2026 included $6.6 million attributable to our Data & Analytics line of business and $9.5 million attributable to our Space Systems line of business compared to $3.2 million and $0.5 million, respectively, in the prior year.
Previous 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.
Current wording
Depreciation expense decreased by $0.4 million, or 26%, to $1.1 million for the three months ended September 30, 2026, as compared to $1.5 million for the three months ended September 30, 2025. The decrease was due primarily to a lower depreciable asset base as satellites reached the end of their estimated useful lives.
Previous 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.
Current wording
Interest income, net increased $0.6 million, or 205% to $0.8 million for the three months ended September 30, 2026 as compared to $0.3 million for the three months ended September 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
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 wording
Income tax expense increased by $139 thousand, or 117%, to an expense of $258 thousand for the three months ended September 30, 2026, from $119 thousand for the three months ended September 30, 2025. The increase was largely driven by higher U.S. tax inclusions related to our foreign earnings.
Previous wording
Comparison of Results for the six months ended June 30, 2026 and 2025
Current wording
Comparison of Results for the nine months ended September 30, 2026 and 2025
Previous wording
The following table summarizes our results of operations for the six months ended June 30, 2026 and 2025.
Current wording
The following table summarizes our results of operations for the nine months ended September 30, 2026 and 2025.
Previous wording
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 wording
Depreciation expense decreased by $2.4 million, or 40%, to $3.6 million for the nine months ended September 30, 2026, as compared to $6.0 million for the nine months ended September 30, 2025. The decrease was due primarily to a lower depreciable asset base as satellites reached the end of their estimated useful lives.
Previous wording
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 wording
Interest income, net increased by $2.1 million or 280% to $2.8 million for the nine months ended September 30, 2026 as compared to $0.7 million for the nine months ended September 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 $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.
Current wording
The negative change in fair value of financial instruments of $91.9 million was related to net losses on our financial instruments of $102.7 million for the nine months ended September 30, 2026, compared to net losses of $10.8 million for the nine months ended September 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 nine months ended September 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 nine months ended September 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.
Previous wording
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.
Current wording
Other (expense) income, net increased $1.0 million, or 188%, to $0.5 million of income for the nine months ended September 30, 2026, compared to $0.5 million of expense for the nine months ended September 30, 2025. The increase was driven primarily by foreign currency exchange net gains for the nine months ended September 30, 2026 compared to foreign currency exchange net losses for the nine months ended September 30, 2025.
Previous wording
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 wording
Income tax expense increased by $1.4 million, or 182%, to $2.2 million for the nine months ended September 30, 2026, from $0.8 million for the nine months ended September 30, 2025. The increase was driven primarily by greater international tax expense related to unrealized gains on our equity investments in the first nine months of 2026.
Previous wording
To supplement our Condensed Consolidated Financial Statements, which are prepared and presented in accordance with U.S. GAAP, we use the following non-GAAP measures: EBITDA; Adjusted EBITDA; and Free Cash Flow. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.
Current wording
To supplement our Condensed Consolidated Financial Statements, which are prepared and presented in accordance with U.S. GAAP, we use the following non-GAAP measures: EBITDA; Adjusted EBITDA; Adjusted Net Cash Used in Operating Activities; and Non-GAAP Free Cash Flow. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.
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 and six months ended June 30, 2026 and 2025.
Current wording
We define Non-GAAP EBITDA as net income (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 nine months ended September 30, 2026 and 2025.
Previous wording
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe these measures provide analysts, investors and management with helpful information regarding the underlying operating performance of our business, as they provide meaningful supplemental information regarding our performance and liquidity by removing the impact of items that we believe are not reflective of our underlying operating performance. The non-GAAP measures are used by us to evaluate our core operating performance and liquidity on a comparable basis and to make strategic decisions. The non-GAAP measures also facilitate company-to-company operating performance comparisons by backing out potential differences caused by variations such as capital structures, taxation, depreciation, capital expenditures and other non-cash items (i.e., embedded derivatives, debt extinguishment and stock-based compensation) which may vary for different companies for reasons unrelated to operating performance. However, different companies may define these terms differently and accordingly comparisons might not be accurate. There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the U.S. GAAP amounts excluded from these non-GAAP financial measures, and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with U.S. GAAP. Non-GAAP measures such as EBITDA, Adjusted EBITDA and Free Cash Flow are not intended to be a substitute for any U.S. GAAP financial measure.
Current wording
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe these measures provide analysts, investors and management with helpful information regarding the underlying operating performance of our business, as they provide meaningful supplemental information regarding our performance and liquidity by removing the impact of items that we believe are not reflective of our underlying operating performance. The non-GAAP measures are used by us to evaluate our core operating performance and liquidity on a comparable basis and to make strategic decisions. The non-GAAP measures also facilitate company-to-company operating performance comparisons by backing out potential differences caused by variations such as capital structures, taxation, depreciation, capital expenditures and other non-cash items (i.e., embedded derivatives, debt extinguishment and stock-based compensation) which may vary for different companies for reasons unrelated to operating performance. However, different companies may define these terms differently and accordingly comparisons might not be accurate. There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the U.S. GAAP amounts excluded from these non-GAAP financial measures, and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with U.S. GAAP. Non-GAAP measures such as EBITDA, Adjusted EBITDA, Adjusted Net Cash Used in Operating Activities, and Free Cash Flow are not intended to be a substitute for any U.S. GAAP financial measure.
Previous wording
The following table presents a reconciliation of Non-GAAP Free Cash Flow to cash flows used in operating activities for the periods indicated.
Current wording
The following table presents a reconciliation of Non-GAAP Free Cash Flow and Adjusted Net Cash Used in Operating Activities to cash flows used in operating activities for the periods indicated.
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 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.
Current wording
We have devoted substantial effort and capital resources to the development of our satellite constellation and image technology. As of September 30, 2026, we had an accumulated deficit of $514.9 million, and for the nine months ended September 30, 2026 net cash used in operating activities was $18.8 million.
Previous wording
The Secured Convertible Notes contain certain restrictive covenants, including restrictions on (i) incurring indebtedness, subject to certain exceptions (including the ability to issue additional Secured Convertible Notes; provided the aggregate principal outstanding amount does not exceed $50.0 million), (ii) creating certain liens, subject to certain exceptions, (iii) the payment of dividends or other restricted payments, (iv) the sale, transfer or otherwise conveyance of certain assets, subject to asset sale pre-payment described above, and (v) affiliate transactions.
Current wording
The Secured Convertible Notes contain certain restrictive covenants, including restrictions on (i) incurring indebtedness, subject to certain exceptions (including the ability to issue additional Secured Convertible Notes; provided the aggregate principal outstanding amount does not exceed $50.0 million), (ii) creating certain liens, subject to certain exceptions, (iii) the payment of dividends or other restricted payments, (iv) the sale, transfer or otherwise conveyance of certain assets, subject to asset sale pre-payment described above, and (v) affiliate transactions. As of September 30, 2026 we are in compliance with all such covenants.
Previous wording
On April 15, 2025, the Company entered into the Securities Purchase Agreement with the purchaser party thereto, pursuant to which the Company agreed to issue and sell in a registered direct offering, 6,451,612 shares of the Company’s Class A common stock at an offering price of $3.10 per share. The gross proceeds to the Company from the registered direct offering were approximately $20 million, before deducting the placement agent’s fees and estimated offering expenses payable by the Company. Closing of the registered direct offering occurred on April 16, 2025. See Note 1 (Nature of the Business and Basis of Presentation) of this Report for further details.
Current wording
On April 15, 2025, the Company entered into the Securities Purchase Agreement with the purchaser party thereto, pursuant to which the Company agreed to issue and sell in a registered direct offering, 6,451,612 shares of the Company’s Class A common stock at an offering price of $3.10 per share. The gross proceeds to the Company from the registered direct offering were approximately $20 million, before deducting the placement agent’s fees and estimated offering expenses payable by the Company. Closing of the registered direct offering occurred on April 16, 2025.
Previous wording
On March 30, 2026, the Company entered into the Sales Agreement pursuant to which the Company may offer and sell, from time to time, through the sales agents, shares of its Class A common stock, par value $0.0001 per share, having an aggregate offering amount of up to $50.0 million. We expect to use the net proceeds from the ATM Program for general corporate purposes.
Current wording
On March 30, 2026, the Company entered into the Sales Agreement pursuant to which the Company may offer and sell, from time to time, through the sales agents, shares of its Class A common stock, par value $0.0001 per share, having an aggregate offering amount of up to $50.0 million. We expect to use any net proceeds from the ATM Program for general corporate purposes. No shares have been issued under the ATM as of September 30, 2026 and we have the full $50.0 million amount remaining under the Current ATM Program.
Previous 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.
Current wording
As of September 30, 2026, the Company had outstanding letters of credit totaling approximately $3.6 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 September 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
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.
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 September 30, 2026, we had $106.5 million in cash and cash equivalents on hand and total Secured Convertible Note principal and accrued interest outstanding of $18.1 million. We believe our existing cash will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months.
Previous wording
The following table summarizes our cash flow information for the six months ended June 30, 2026 and 2025.
Current wording
The following table summarizes our cash flow information for the nine months ended September 30, 2026 and 2025.
Previous wording
(1)Includes items such as depreciation, changes in the fair value of financial instruments, interest expense, income tax, stock-based compensation expense, expense for estimated credit losses on accounts receivable, changes in foreign currency and others.
Current wording
(1)Includes items such as depreciation, changes in the fair value of financial instruments, deferred income tax, stock-based compensation expense, release of estimated credit losses on accounts receivable, changes in foreign currency and others.
Previous wording
(6)The change is primarily due to an increase in contract liabilities for new revenue contracts.
Current wording
(6)The change is primarily due to a decrease in contract liabilities for delivery of satellites sold during 2026.
Previous 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.
Current wording
Net cash provided by financing activities was $31.2 million for the nine months ended September 30, 2026 compared to net cash provided by financing activities of $27.0 million for the nine months ended September 30, 2025, which resulted primarily from greater proceeds from stock issuances under the Registered Direct Offering in the first nine 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 and higher payments for withholding taxes related to the net share settlement associated with higher equity awards in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Previous wording
Refer to Note 2 Summary of Significant Accounting Policies for updates to our critical accounting policies and estimates during the three months ended June 30, 2026, specifically regarding our revenue recognition policy for satellite sales and the transition to the fair value method of accounting for our equity investment in Officina Stellare. Aside from these updates, the application of each of these critical accounting policies and estimates is discussed in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2025 Annual Report.
Current wording
Refer to Note 2 Summary of Significant Accounting Policies for updates to our critical accounting policies and estimates during the nine months ended September 30, 2026, specifically regarding our revenue recognition policy for satellite sales and the transition to the fair value method of accounting for our equity investment in Officina Stellare. Aside from these updates, the application of each of these critical accounting policies and estimates is discussed in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2025 Annual Report.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Cost of revenue, exclusive of depreciation
Previous report — wording carried elsewhere
Cost of revenue, exclusive of depreciation
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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.