BlackSky Stock Plummets After Q2 Earnings Miss

BlackSky Technology Inc. (BKSY) shares tumbled 6.97% in afternoon trading Thursday following a disappointing second-quarter earnings report. The Earth observation satellite company posted a $1.27-per-share loss, significantly wider than analysts' $0.48 loss projection, despite narrowly meeting revenue expectations of $22.2 million.

Revenue declined 11% year-over-year, with professional and engineering services revenue experiencing sharp declines. Net losses quadrupled, attributed largely to derivatives contracts. The company's share count expansion mitigated the per-share loss increase to 144%, still a stark deterioration from prior performance.

Buried in the cash FLOW statement, BlackSky reported $11.9 million in positive free cash flow for the first half, though $10.8 million was allocated to satellite work in progress. The mixed financial picture leaves investors questioning the company's path to profitability amid ongoing capital-intensive operations.