BlackSky Stock Tanks: Here’s Why Investors Are Bailing Today
Another rough day for BlackSky shareholders as the stock takes a nosedive—Wall Street's latest chew toy gets tossed aside. Here's the breakdown.
Satellite Surveillance Slump?
Geospatial intelligence plays like BlackSky live and die by government contracts and commercial demand. When either wavers, the market pounces like a hawk spotting wounded prey.
Short Sellers Circling
Betting against hyped-up space tech stocks became a blood sport in 2025. BlackSky's volatility makes it prime hunting ground for hedge funds playing volatility bingo.
The Cynical Take
Another 'disruptive' tech stock learning the hard way that EBITDA still matters—even in orbit. Maybe pivot to AI-powered lunar NFTs?
Image source: Getty Images.
BlackSky Q2 earnings
Revenue declined 11% year over year, with imagery orders rising nicely, but lumpier "professional and engineering services revenue" falling steeply. Net losses quadrupled year over year, a fact the company blamed on a large loss on derivatives contracts.
The per-share loss didn't increase quite as fast as the net loss, due to BlackSky selling a lot of shares (to raise cash) in the quarter, resulting in a much larger share count that spread out total net losses among more shares outstanding. Thus, the per-share loss increased "only" 144%.
Is BlackSky stock a sell?
Was there any good news to report? Actually, yes, although it took some hunting to find it. Way down at the end of the earnings report, on the cash-flow statement, BlackSky noted that through the first half of this year it's generated positive free cash flow of $11.9 million. The company did note that it spent $10.8 million in cash on "satellite work in process," however. If considered a capital expenditure (and to be conservative, we probably should consider it capex), that WOULD cut FCF for the first half to just $1.1 million.
That's not great, but at least it's positive.
Still, with a $620 million market capitalization, falling sales and deeply negative earnings, it's hard to call BlackSky stock a buy right now. So I won't.
