BlackSky signs seven-figure contract with HEO for space monitoring

HERNDON, Va. - BlackSky Technology Inc. (NYSE:BKSY), a geospatial intelligence company with a market capitalization of $612 million and impressive gross profit margins of 69%, has signed a seven-figure contract with HEO to provide automated non-Earth imaging (NEI) services for space domain awareness, according to a press release statement issued Tuesday.

The agreement, now entering its fourth phase, involves BlackSky’s Gen-2 satellite constellation capturing images of orbiting spacecraft and other objects in space. The system has been fully automated from tasking to delivery, eliminating the need for human intervention in the process.

BlackSky’s satellites will detect, track, and classify objects in orbit, with the data being integrated into HEO’s software platform called HEO Inspect. The platform processes the imagery using algorithms to generate analytics reports containing information such as satellite attitude, location, and pattern-of-life analyses.

"BlackSky’s high-resolution Gen-2 high-cadence monitoring constellation continues to contribute valuable insight for space domain awareness," said Brian O’Toole, BlackSky CEO. The company’s stock has shown strong momentum, delivering a 61% return year-to-date, though InvestingPro analysis indicates the stock is currently trading above its Fair Value.

The contract leverages unused satellite capacity, particularly when BlackSky’s satellites are passing over oceans or traveling across the dark side of Earth. This approach utilizes satellite resources that would otherwise be idle.

Dr. Will Crowe, Co-Founder and CEO of HEO, stated that BlackSky’s satellites "give us eyes in mid-inclination orbit, turning downtime into an intelligence goldmine for operators who need to know what’s happening around their assets."

HEO added BlackSky’s constellation to its NEI sensor network in 2024. The service is aimed at defense, intelligence, and commercial customers who require monitoring of space-based assets.

BlackSky, headquartered in Herndon, Virginia, operates a constellation of low Earth orbit small satellites and provides geospatial intelligence services, generating annual revenue of $104.7 million. The company maintains strong liquidity with a current ratio of 3.71, though it’s not yet profitable. InvestingPro subscribers can access 12 additional key insights and a comprehensive Pro Research Report, part of the platform’s coverage of 1,400+ US equities.

In other recent news, BlackSky Technology Inc. reported a 5.2% increase in revenue for the second quarter of 2025, totaling $51.7 million. However, the company faced an adjusted EBITDA loss of $3.4 million, contrasting with a $3.5 million profit during the same period last year. Additionally, BlackSky secured a two-year Gen-3 early access agreement with a new international customer, who previously signed a Gen-2 On-Demand contract in January. This contract highlights the growing demand for BlackSky’s imaging capabilities, including Gen-3 high-resolution imagery and Gen-2 dynamic monitoring services. While the company did not receive any analyst upgrades or downgrades, these developments indicate strategic movements in BlackSky’s business operations.

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