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    SATL
    Earnings call· Jun 2026(Q2 FY26)

    Satellogic Q2 FY26 earnings call SATL

    Aug 5, 2026 Source

    Executive summary

    Satellogic Q2 FY26 — First Positive Operating Income and Adjusted EBITDA

    Satellogic achieved a significant financial inflection point in Q2 FY26, reporting its first positive operating income and adjusted EBITDA, driven by strong revenue growth and operating leverage. The company is capitalizing on increasing demand for Persistent Global Intelligence, with its Merlin constellation on track for its initial launch in October 2026, aiming for full service by H2 2027. The market is shifting towards subscription-based monitoring, a trend Satellogic is well-positioned to lead with its vertically integrated model and cost-efficient satellite technology.

    Highlights

    5

    • Revenue grew 259% year-over-year to $15.9 million in Q2 FY26.

    • Achieved positive operating income of over $300,000 for the first time.

    • Delivered positive adjusted EBITDA of $2.8 million for the first time.

    • Ended the quarter with $80.7 million in contracted non-cancellable total remaining performance obligations (RPO).

    • Cash and cash equivalents stood at $112.8 million at quarter-end.

    Concerns

    1

    • GAAP net loss for the quarter was $20 million, including a $19.7 million noncash fair value charge.

    Guidance & targets

    4
    CategoryTargetConfidence
    Merlin constellation full service
    Second half of 2027
    high materiality
    High
    Merlin constellation first launch
    October 2026
    high materiality
    High
    Merlin constellation subsequent launches
    First half of 2027
    high materiality
    High
    Free cash flow
    Positive in 2027
    high materiality
    Medium

    Segment performance

    6
    SegmentRevenueYoYQoQMargin
    Space Systems
    Revenue driven by sovereign satellite deliveries.
    Contribution to revenue: 55%
    		$8.8 million———
    Data and Analytics
    Revenue from customer subscriptions for persistent monitoring expanded, showing strong sequential growth from $4.6 million in Q1.
    Contribution to revenue: 45%
    		$7.1 million—54% sequential growth—
    Europe
    Revenue driven by CEiiA delivery.
    Contribution to revenue: 58%
    		$9.2 million———
    Middle East and North Africa
    Contribution to revenue: 22%
    		$3.6 million———
    Americas
    Contribution to revenue: 14%
    		$2.3 million———
    Asia-Pacific
    Contribution to revenue: 6%
    		$900,000———

    Operational metrics

    13
    Total Revenue
    $15.9 million259% year-over-year
    Q2 FY26

    Record Q2 revenue.

    Total Revenue
    $22 million181% increase compared to $7.8 million in H1 FY25
    H1 FY26

    Total revenue for the first 6 months of 2026.

    Operating expenses
    $15.7 millionUp 46%
    Q2 FY26

    Compared to 259% revenue growth, highlighting operating leverage.

    Gross margin (exclusive of depreciation)
    82%
    Q2 FY26

    Strong gross margin achieved.

    Operating income
    $300,000Positive (first time)
    Q2 FY26

    First positive quarterly operating income for the company.

    Adjusted EBITDA
    $2.8 millionPositive (first time)
    Q2 FY26

    First positive quarterly adjusted EBITDA for the company.

    Adjusted EBITDA loss
    $1.4 millionImproved $8.7 million compared to $10.1 million in H1 FY25
    YTD H1 FY26

    Year-to-date improvement in adjusted EBITDA loss.

    GAAP net loss
    $20 million
    Q2 FY26

    GAAP net loss for the quarter.

    Net cash used in operating activities
    $8.6 millionCompared to $4.3 million in prior year period
    Q2 FY26

    GAAP operating cash flow excludes $8.3 million in proceeds from sale of in-orbit satellite.

    Cash and cash equivalents
    $112.8 million
    Q2 FY26

    Strong liquidity position at quarter-end.

    Secured convertible debt
    $18 millionReduced from $30 million
    Q2 FY26

    Debt deleveraged by $12 million during the quarter.

    Additions to backlog
    $28.6 million
    Q2 FY26

    New additions to the total remaining performance obligations.

    Revenue recognized from backlog
    $12.7 million
    Q2 FY26

    Portion of backlog recognized as revenue in the quarter.

    Industry KPIs

    1
    MetricValueDetails
    Total company backlog$80.7 millionUSD

    Orderbook & backlog

    2
    Total non-cancellable remaining performance obligations$80.7 millionJune 30, 2026

    Increased by $15.9 million this quarter

    RPO expected to be recognized within the next 12 months$45.8 millionJune 30, 2026

    Provides strong top-line visibility.

    Deals & partnerships

    5
    CEiiA (Portugal)Delivery of first satellite in an $18 million program$18 million

    Successfully delivered the first satellite for Portugal's CEiiA program.

    International defense customerAleph Observer agreement for persistent monitoringMore than $18 million

    Secured and started delivery of an international Aleph Observer agreement.

    Sovereign defense customerIn-orbit delivery and transfer of a commissioned NewSat satellite$12 million

    Closed an agreement for the in-orbit delivery and transfer of a NewSat satellite. This is the third sovereign transaction announced in the past two quarters.

    SynMaxStrategic collaboration to build AI-powered geospatial intelligence products

    Collaboration to build AI-powered geospatial intelligence products in Satellogic's platform.

    SpaceKnowStrategic collaboration to build AI-powered geospatial intelligence products

    Collaboration to build AI-powered geospatial intelligence products in Satellogic's platform.

    What to watch in Q3 FY26

    4

    Merlin constellation first launch

    Q4 FY26
    CurrentMELI 1 integrated and ready for shipment
    TargetSuccessful launch in October 2026

    Why it matters

    Successful launch of the first Merlin satellite is a key milestone for the company's next-generation constellation and future revenue streams.

    Our Merlin constellation is on track to start launching in October 2026. The first satellite is fully integrated and ready to ship to the launcher, having passed all environmental and functional tests.

    Q&A highlights

    5

    What are the key remaining milestones for Merlin, and what is the expected launch cadence and ramp-up to operational capacity?

    The first Merlin satellite is integrated and ready for shipment for an October 2026 launch. Subsequent launches for the remaining satellites are planned for H1 2027, with full service expected in H2 2027. The company plans to work with anchor customers on data familiarization and processing pipelines as early as the first satellite launch.

    “The satellite is essentially packaged at our manufacturing facility and ready for pickup. So next phase is it will go to the launcher and be integrated into a launch vehicle, in this case, SpaceX transporter mission in time for the launch window in October. ... And we expect both launches in the first half of the year. So the full constellation for -- to provide complete service will be up if all goes according to plan in the first half of the year. And then we will start delivering full service in the second half of the year.”

    asked by Andres Sheppard of Cantor Fitzgerald · answered by Emiliano Kargieman

    2 min read6 chapters

    Detailed Narrative

    01

    Financial Inflection Point Achieved

    Satellogic reported its first-ever positive operating income and adjusted EBITDA in Q2 FY26, marking a significant financial milestone. Revenue grew 259% year-over-year to $15.9 million, while operating expenses increased by only 46%, demonstrating strong operating leverage. This validates the company's vertically integrated model and positions it for sustained profitability.

    02

    Shift to Persistent Global Intelligence

    The earth observation market is undergoing a fundamental transformation from transactional imagery to continuous, persistent monitoring. Satellogic's infrastructure, built on its cost-efficient satellites and high collection efficiency, enables it to deliver 'Persistent Global Intelligence.' This shift is driven by geopolitical urgency, distributed threats, and the rise of AI/analytics, moving the business towards high-margin, multi-quarter subscription programs.

    03

    Merlin Constellation Progress

    The Merlin constellation, designed to provide a daily global remap layer, is on track for its first launch in October 2026. The first satellite, MELI 1, is fully integrated and ready for shipment. Subsequent launches are planned for H1 2027, with full operational service expected in H2 2027. Merlin will feature onboard computing, Edge AI, and inter-satellite links to enable rapid detection and cueing of high-resolution assets.

    04

    Aleph Observer Driving Data & Analytics Growth

    The Aleph Observer platform, launched in February, is successfully converting one-off📎 imagery buyers into multi-quarter monitoring subscriptions. Data and Analytics revenue grew 54% sequentially to $7.1 million in Q2 FY26, indicating strong traction for the persistent monitoring service. This platform is becoming a core driver of the company's business, supporting the shift to subscription-based revenue.

    05

    Strong Backlog and Liquidity Position

    Satellogic ended Q2 FY26 with $80.7 million in total non-cancellable remaining performance obligations (RPO), with $45.8 million expected to be recognized within the next 12 months. The company also maintains a strong liquidity position with $112.8 million in cash and cash equivalents, and secured convertible debt reduced to $18 million, providing a solid financial footing to capture growing market demand.

    06

    Strategic Partnerships and Sales Expansion

    The company announced strategic collaborations with SynMax and SpaceKnow to build AI-powered geospatial intelligence products, enhancing its platform's value proposition. To meet growing demand, Satellogic expanded its sales organization with three senior industry leaders and ramped up satellite production at its Montevideo facility, focusing on sovereign and defense customers.

    AI-generated summary of the company’s earnings call. Not investment advice.