Satellogic Inc.

Second-quarter revenue was $15.9 million, up 259% year over year; first-half 2026 revenue was $22 million, up 181% from $7.8 million in first-half 2025. Gross margin was 82% excluding depreciation. Operating expenses were $15.7 million, up 46% year over year. The company posted positive quarterly operating income of just over $300,000 and positive adjusted EBITDA of $2.8 million, both firsts for Satellogic; adjusted EBITDA loss improved by $8.7 million year to date to a loss of $1.4 million versus a $10.1 million loss in the first half of 2025. GAAP net loss was $20 million, including a $19.7 million noncash fair value charge. Cash and cash equivalents were $112.8 million at quarter end. Non-cancelable remaining performance obligations were $80.7 million, with $45.8 million expected within 12 months, up $15.9 million sequentially. Secured convertible debt fell from $30 million to $18 million after a $12 million equity conversion. Management reiterated that 2026 should be a major step toward sustained profitability and expects positive free cash flow in 2027 as Merlin enters service.

Emiliano Kargieman framed the quarter as a structural inflection point, arguing that the market is shifting from transactional imagery to persistent global intelligence. He said Satellogic’s vertically integrated model, low satellite cost structure, and AI-enabled monitoring layers make theater-scale persistent coverage economically viable. He emphasized that Meridian/Merlin is on track for an October 2026 launch, that the company is fully funded for its planned buildout, and that sovereign defense demand and partner-led analytics applications are strengthening the opportunity set.

Richard Dunn emphasized that the company is benefiting from operating leverage because the geospatial data market is supply constrained and Satellogic can leverage its in-orbit fleet. He cited 82% gross margin excluding depreciation, $15.7 million of operating expenses, positive operating income of just over $300,000, positive adjusted EBITDA of $2.8 million, and $112.8 million of cash and equivalents. He also noted $80.7 million of non-cancelable RPO, $45.8 million expected within 12 months, a $12 million reduction in secured convertible debt to $18 million, and adjusted operating cash flow essentially breakeven at $100,000 for the first half when including the $8.3 million satellite-sale proceeds. He said the company expects to cross into positive free cash flow in 2027 as Merlin enters operational service.

Analysts focused on Merlin timing, backlog/pipeline conversion, and the economics of the new persistent-monitoring model. Management said Merlin’s first satellite has passed environmental and functional testing, is ready to ship to the launcher, and the first launch is targeted for October 2026, with two launches in 2027 and full service in the second half of 2027. On Aleph Observer, management said 2026 is expected to be a pilot year but that some pilots are converting unusually fast, including an $80 million-per-year program that moved from pilot to full-scale in less than six months. They also said pipeline conversion is accelerating in some sovereign deals, that Space Systems opportunities have defined budgets, and that the Palantir relationship remains important but is currently structured as a barter transaction with zero net cash to Satellogic.