Satellogic Q2 Earnings Call Highlights

• Satellogic Is Tiny But Its Revenue Growth Is Hard to Ignore

Satellogic (NASDAQ:SATL) reported second-quarter revenue growth of 259% year over year and said it generated positive operating income and adjusted EBITDA for the first time in its history, as sovereign satellite deliveries and subscriptions for persistent monitoring expanded.

Revenue totaled $15.9 million for the quarter, while first-half revenue reached $22 million, up 181% from $7.8 million in the first half of 2025. Founder and Chief Executive Officer Emiliano Kargieman said the results marked “a major step towards sustained profitability” and reflected operating leverage in the company’s vertically integrated satellite model.

• Why Satellogic Could Be One of the Biggest Space Winners of 2026

Second-quarter operating expenses rose 46% to $15.7 million, substantially below the company’s revenue growth rate. Satellogic posted operating income of just over $300,000 and adjusted EBITDA of $2.8 million. Its adjusted EBITDA loss improved to $1.4 million for the first six months of 2026, compared with a $10.1 million loss in the year-earlier period.

However, the company reported a GAAP net loss of $20 million in the quarter, including a $19.7 million non-cash fair-value charge tied to the remeasurement of financial instruments following stock-price movements.

Space Systems and Data Subscriptions Drive Revenue

Space systems generated $8.8 million, or 55% of second-quarter revenue, supported by sovereign satellite deliveries. Data and analytics contributed $7.1 million, or 45% of revenue, as subscriptions for persistent monitoring increased.

Data and analytics revenue rose 54% sequentially from $4.6 million in the first quarter, according to Kargieman. He said the company’s Aleph Observer platform, launched in February, is helping shift customers from individual imagery purchases toward multi-quarter monitoring subscriptions.

“Six months ago, persistent global intelligence was the thesis we were describing to you,” Kargieman said. “It is now becoming a core driver of the company’s business.”

Europe accounted for $9.2 million, or 58%, of quarterly revenue, led by delivery activity related to Portugal’s CEiiA program. The Middle East and North Africa contributed $3.6 million, the Americas generated $2.3 million, and Asia-Pacific represented $900,000.

The company cited four commercial developments during the quarter:

• Delivery of the first satellite under Portugal’s $80 million CEiiA program, converting nearly half of the program into recognized revenue.
• An international Aleph Observer agreement with a defense customer valued at more than $18 million.
• A $12 million agreement for in-orbit delivery and transfer of a commissioned NewSat satellite to a sovereign defense customer.
• Strategic collaborations with SynMax and SpaceKnow to develop AI-powered geospatial intelligence products on Satellogic’s platform.

Backlog, Liquidity and Cash Flow

Satellogic ended June with $80.7 million in contracted, non-cancellable remaining performance obligations, including $45.8 million expected to be recognized over the next 12 months. The total was up $15.9 million during the quarter, reflecting $28.6 million in backlog additions and $12.7 million recognized as revenue.

The company held $112.8 million in cash and cash equivalents at quarter-end. Its secured convertible debt fell to $18 million from $30 million after a noteholder exercised a $12 million equity conversion.

Net cash used in operating activities was $8.6 million in the second quarter, compared with $4.3 million in the prior-year period. Chief Financial Officer Rick Dunn noted that GAAP operating cash flow excludes $8.3 million in proceeds from the sale of an in-orbit satellite because those proceeds were classified as investing activities. On an adjusted operating cash flow basis that includes the sale, operating cash flow for the first half was approximately break-even at $100,000.

Dunn said the company expects 2026 to represent a further step toward sustained profitability and expects to cross into positive free cash flow in 2027 as the Merlin constellation begins operations.

Merlin Launch Remains Planned for October

Kargieman said the first Merlin satellite, Merlin 01, has completed environmental and functional testing and is ready to ship to the launch provider. Satellogic continues to target an October 2026 launch window aboard a SpaceX Transporter mission.

Following commissioning of the initial satellite, the company expects two additional launches in the first half of 2027. Kargieman said the full constellation is expected to provide complete service in the second half of 2027, assuming launches proceed as planned.

Merlin is designed to provide daily global remapping and baseline detection using onboard computing, edge AI and inter-satellite links. Kargieman said the system is intended to detect changes in orbit and cue higher-resolution satellites more quickly than a conventional ground-based processing loop.

Satellogic also said it is continuing development of its NextGen 30-centimeter-class system, intended for precision verification and characterization, while its existing 50-centimeter-class NewSat constellation supports current monitoring activity.

CFO Transition and Pipeline Commentary

The company also confirmed that Dunn’s final day as CFO will be Aug. 21. If a permanent successor has not been appointed by then, Senior Vice President and Corporate Controller Dustin Greer will serve as interim CFO. Kargieman said the search for a permanent replacement is active.

During the question-and-answer session, management said its space systems pipeline remains on the order of nearly $1 billion and consists of qualified opportunities with identified customer needs and budgets. Dunn cautioned that sovereign space systems transactions vary widely in timing, with past conversions ranging from four to six months to as long as three years.

Kargieman said the company is seeing some sovereign opportunities move more quickly amid geopolitical tensions, higher defense budgets among U.S. allies and increased adoption of AI analytics. He added that Satellogic is not yet providing subscription metrics such as average revenue per user, monthly recurring revenue or customer lifetime value for Aleph Observer, saying management wants additional quarters of performance data before disclosing those measures.

About Satellogic (NASDAQ:SATL)

Satellogic Inc is a NewSpace company specializing in the design, manufacture and operation of a low‐Earth‐orbit (LEO) microsatellite constellation. The company's satellites capture high‐resolution multispectral imagery, enabling detailed monitoring of agricultural, forestry, maritime, energy and infrastructure assets. Satellogic's vertically integrated model covers end‐to‐end capabilities, from satellite development and deployment to data processing and analytics, allowing clients to access imagery and insights on demand.

Key offerings include geospatial data products, analytics services and software tools that leverage machine learning algorithms to interpret changes on Earth's surface.

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