SATL

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 4:30 p.m. ET Founder and Chief Executive Officer - Emiliano Kargieman Chief Financial Officer - Rick Dunn Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good afternoon, and welcome to the Satellogic Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] During today's call, management may make statements relating to goals and objectives for the future operations, financial and business trends, business prospects, future financial metrics, customer contracts and pipeline, revenue generation and expectations for future performance that constitute forward-looking statements under the federal securities laws. Any such forward-looking statements reflect management expectations based upon currently available information and are not guarantees of future performance. They involve certain risks and uncertainties that are more fully described in Satellogic's SEC filings, including the Risk Factors section of our quarterly report on Form 10-Q for the quarter ended June 30, 2026, our annual report on Form 10-K for the fiscal year ended December 31, 2025, and other filings with the SEC. Actual results, performance or achievements may differ materially from those expressed in or implied by these forward-looking statements. Satellogic undertakes no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this call. On this call, management will also discuss financial measures not determined in accordance with U.S. GAAP, including EBITDA, adjusted EBITDA and adjusted operating cash flow. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are presented in the appendix to today's presentation and in the earnings materials posted on the Investor Relations section of the website. A press release detailing these results was issued this afternoon and is available at satellogic.com. Hosting today's call will be Satellogic's Founder and Chief Executive Officer, Emiliano Kargieman; and Chief Financial Officer, Rick Dunn. With that, I will now turn the call over to the CEO. Please go ahead, sir. Emiliano Kargieman: Thank you, operator, and good afternoon, everyone. Welcome to Satellogic's Second Quarter 2026 Earnings Conference Call. Joining me today is Rick Dunn, our Chief Financial Officer. I'll start with the quarterly results and the commercial wins that drove them and then comment on where our contracted backlog stands for the balance of this year. Rick will then take you through the financials in detail. After that, I'll come back to where this market is going, why we think we're positioned to lead it and provide an update on Merlin on our infrastructure build-out. I'll then close with key takeaways before we open the line for questions. In the second quarter, we grew revenue 259% year-over-year to $15.9 million, generated positive operating income and positive adjusted EBITDA for the first time in the company's history. And while revenue grew 259%, operating expenses increased only 46%, demonstrating the real operating leverage of our vertically integrated model. This milestone represents a major step towards sustained profitability and validates the operating leverage we have discussed over the past few quarters. We had 4 key sovereign and defense wins and milestones as follows: First, we successfully delivered the first satellite in Portugal's $18 million CEiiA program, converting nearly half the program to recognized revenue. Second, we secured and started delivery of an international Aleph Observer agreement with a defense customer valued at more than $18 million, moving from initial trial to full-scale deployment in under 6 months. Third, in April, we closed a $12 million agreement for the in-orbit delivery and transfer of a commissioned NewSat satellite to a sovereign defense customer. This is the third sovereign transaction we have announced in the past 2 quarters. And fourth, we announced strategic collaborations with SynMax and SpaceKnow to build AI-powered geospatial intelligence products in our platform. We recognized $22 million in revenue in the first half of the year and ended the quarter with $80.7 million in contracted non-cancellable total remaining performance obligations. Significantly, $45.8 million of that RPO is contracted for realization within the next 12 months. This gives us strong top line visibility as we continue to convert our growing defense pipeline and lean into the strong global sovereign demand. To ensure we capture this demand, we expanded our sales organization with 3 senior industry leaders and ramped up satellite production at our Montevideo facility to support our Merlin, NewSat and NextGen programs alongside sovereign deliveries. During the quarter, we also welcomed retired Lieutenant General, Michael E. Williamson, to our Board as an Independent Director. Now before sharing updates on Aleph Observer, the transition to Persistent Global Intelligence and the build-out of our Merlin constellation, I will hand the call over to Rick to walk you through the financial details. Rick? Richard Dunn: Thank you, Emiliano, and good afternoon, everyone. Today's geospatial data market is supply constrained with customers demanding significantly more data at lower costs. Because we operate one of the largest high-resolution constellations in the world, we benefit from considerable operating leverage. By utilizing our existing in-orbit fleet capacity and fully leveraging our cost leadership, we're well positioned to capture this demand. The second quarter and the first half of 2026 mark a structural and financial inflection point for Satellogic. Starting with revenue. Total revenue for the second quarter was $15.9 million, up 259% year-over-year. For the first 6 months of 2026, total revenue reached $22 million, representing an increase of 181% compared to $7.8 million in the first half of 2025. Looking at our Q2 business lines, Space Systems contributed $8.8 million or 55% of revenue, driven by sovereign satellite deliveries. Data and Analytics contributed $7.1 million or 45% of revenue as customer subscriptions for persistent monitoring expanded. We also expanded our geographic reach across our sovereign and defense customer base. Europe led the second quarter at 58% of revenue or $9.2 million, driven by CEiiA delivery. The Middle East and North Africa contributed $3.6 million or 22% of revenue, while the Americas generated $2.3 million or 14% of revenue and Asia-Pacific represented $900,000 or 6% of revenue. Turning to margins and cost structure. We delivered these results with an 82% gross margin in the second quarter, exclusive of depreciation. Total operating expenses were $15.7 million, up 46% in comparison to the 259% revenue growth, highlighting the operating leverage inherent in our vertically integrated model. This operating leverage drove profitability metrics for Satellogic as follows: First, we achieved positive quarterly operating income of just over $300,000 for the quarter. Second, we delivered positive adjusted EBITDA of $2.8 million for the quarter. Both of these are first for the company. Lastly, adjusted EBITDA loss improved $8.7 million year-to-date coming in at $1.4 million compared to $10.1 million in the first half of 2025. Our GAAP net loss for the quarter was $20 million, which includes a $19.7 million noncash fair value charge resulting from the remeasurement of financial instruments tied to stock price movement. Turning to cash flow. Net cash used in operating activities was $8.6 million in the second quarter compared to $4.3 million used in the prior year period. It is important to note that GAAP operating cash flow excludes $8.3 million in proceeds from the sale of an in-orbit satellite originally capitalized as part of our own fleet. These proceeds are presented within investing activities. From an adjusted operating cash flow basis, which includes the in-orbit satellite sale, our operating cash flow for the first half was essentially breakeven at $100,000. Looking at the balance sheet, we closed the quarter in a strong liquidity position with $112.8 million in cash and cash equivalents. In terms of backlog, total non-cancelable remaining performance obligations stood at $80.7 million as of June 30, with $45.8 million expected to be recognized in the next 12 months. This is an increase of $15.9 million this quarter, reflecting $28.6 million of additions to backlog and $12.7 million recognized as revenue in the quarter. Additionally, we delevered by $12 million as a result of an equity conversion exercised by our secured convertible note holder during the quarter. Our secured convertible debt reduced from $30 million to $18 million during the quarter. With our operating leverage, growing recurring revenue and expanding defense pipeline, we expect 2026 to be a major step towards sustained profitability, crossing into positive free cash flow in 2027 as Merlin enters operational service. With that, I will turn the call back over to Emiliano. Emiliano Kargieman: Thank you, Rick. We see the earth observation market undergoing a fundamental transformation. For years, the gaps in this market were not so much a technology problem, but a unit economics and business model problem. Legacy providers did not build the infrastructure required to capture information globally and persistently at a reasonable cost and could not deliver data at the scale required. Customers suffered the consequences. Sparse, expensive and capacity limited systems were insufficient to serve the growing demand for geospatial awareness and force the legacy earth observation business model to be transactional, expensive and exclusive. A customer requests an image of a specific coordinate, receives a fragmented snapshot, experiences breaks and cadence and buys imagery scene-by-scene at a high cost, leaving them with an incomplete view and exposing them to decision risk. With the technology stack that Satellogic has built over the last few years, that is no longer the case. Our satellite capacity, unit economics and scalability allow us to build the infrastructure required to deliver Persistent Global Intelligence. Persistent Global Intelligence is a different category. The requirement is to identify and monitor areas continuously, delivering an uninterrupted stream of situational awareness. As persistent monitoring becomes available in the market, customers are leaning into continued monitoring service to replace episodic imagery. We believe this shift is structural, supported by our unit economic breakthroughs and fueled by heightened geopolitical urgency, distributed threats and the coming of age of AI and analytics. Defense and intelligence customers are starting to prioritize persistent monitoring over transactional bots. That moves our business towards high-margin multi-quarter subscription programs. This quarter, we started to see the impact of this change in our numbers rather than only in customer conversations. Our Data and Analytics revenue, as Rick mentioned, was $7.1 million in the second quarter, up from $4.6 million in the first, a 54% sequential growth on the subscription side of business, even in a quarter where satellite deliveries were the headline. Aleph Observer, the persistent monitoring platform we launched in February is converting one-off imagery buyers into multi-quarter monitoring subscriptions. Six months ago, Persistent Global Intelligence was a thesis we were describing to you. It is now becoming a core driver of the company's business. This brings me to why we are positioned to lead this category. Vertical integration and our payload innovations are what make persistent global scale coverage economically viable and poised for growth. This comes down to physics and unit economics. Our patent-protected camera design lets us capture an exceptional volume of high-resolution imagery from a small set form factor and combined with a fully loaded NewSat cost of approximately $1.3 million per satellite, a small fraction of the industry standard, that collection efficiency sets our operating economics apart. That cost structure is why we can serve persistent monitoring at theater scale and still hold the gross margins that Rick just walked us through and why our margin profile improves rather than compresses as we scale collection. As the market shifts to always-on monitoring, Satellogic builds the infrastructure that produces the persistent intelligence. For sovereign defense customers, this infrastructure delivers strategic autonomy, intelligence continuity and decision advantage independent of third-party priorities and without key dependencies on foreign suppliers. Here is how this [ infrared sector ] is built across a series of integrated layers. First, operational monitoring with NewSats. Our 50-centimeter class Mark V and Mark VI satellite constellation is operational today, powering persistent monitoring across thousands of priority sites daily and driving subscription revenue through Aleph Observer. Second, the global baseline detection layer we're building with Merlin. 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. Merlin is our daily global remap constellation designed to create a dedicated global baseline detection layer. Building on the onboard computing, Edge AI and inter-satellite links we engineer for usage fleet, Merlin satellites incorporate a white swath , high-resolution imager and the ability to process data directly in-orbit and communicate across our entire constellation in real time. Rather than waiting for a ground station downlink, Merlin can detect changes at the edge and automatically tip and cue our high-resolution constellation in seconds, collapsing what used to be a multi-hour ground loop to minutes. The third layer is precision verification with NextGen, or 30-centimeter class system currently in development to confirm, characterize and verify activity. On top of these data collection layers sit power on our partners' AI and analytics and our customers' agentic platforms, implementing the automated workflows that deliver decisions at scale and on time. The true power is in the AI-first automated loop amongst these layers. The baseline detects, the monitoring layer sustains and the precision layer verifies, giving our customers an integrated always-on decision advantage. Our product offering across data and analytics and space systems, ranging from imagery archive all the way to local assembly and integration facilities and supply chain localization is built to support our customers in their journey towards operating a truly sovereign autonomous and independent infrastructure for Persistent Global Intelligence. As a quick aside, I mentioned that Merlin is on track for its October launch, and I want now to draw your attention to this image showing the first Merlin satellite, MELI 1, fully integrated in our clean room last month. This is our first flight model built end-to-end in-house based on our extensive bus heritage from the NewSat constellation after having successfully passed all environmental qualification and functional testing. The hardware is ready to ship to the launch site in time for a planned October launch window, and the team is now focused on the integration of the next set of satellites in the fleet. It is good to be able to share this picture and highlight that Merlin is progressing as planned, executing against the core fundamentals we committed to. Before summarizing our key takeaways, I want to share an important leadership update. As we previously disclosed, August 21 will be Rick Dunn's last day as Chief Financial Officer of Satellogic. Rick has been with us for 7.5 years. He built the financial infrastructure that carried this company to going public through operational scaling and through to the strong financial results that we reported today. Our search for a permanent successor is active. To ensure a seamless transition, Dustin Greer, our Senior Vice President and Corporate Controller, will assume the role of Interim CFO effective August 21, if a permanent successor has not yet been appointed. Dustin is supported by an exceptional finance team, and we have complete confidence in their continued execution. I will hand the floor to Rick for a few brief comments. Richard Dunn: Thanks, Emiliano. After 7.5 years, when I look at where we started against where we stand today, recording our first positive operating income and adjusted EBITDA this quarter, I'm immensely proud of what this team has built. We established a financial foundation for the first vertically integrated geospatial company and stood up the infrastructure for Persistent Global Intelligence. The company's financial footing is the strongest it has ever been, and we've built a resilient finance organization to support the business as it continues to scale. The trajectory is clear, and I look forward to watching Satellogic execute on its next phase of growth. Thank you, everyone. Emiliano Kargieman: Thank you, Rick. On behalf of our Board and the entire team, thank you for your leadership and your dedication. To wrap up, I want to leave you with 5 takeaways from the second quarter. First, financial inflection has been achieved. Our record Q2 revenue of $16.9 million and positive adjusted EBITDA of $2.8 million proved the operating leverage of our business model. Second, the Persistent Global Intelligence market shift is underway. The market is transitioning from transactional imager buys to always-on monitoring, and we build an infrastructure that powers the subscription preference. Third, vertical integration is our moat. In-house design and manufacturing and the differentiated cost structure and scalability it supports makes theater scale persistent monitoring economically viable and highly profitable. Fourth, we are fully funded to global awareness. Operating one of the world's largest commercial constellations today, our Merlin constellation remains on track for its first launch in October 2026 and fully funded to launch a global baseline detection layer equipped with Edge AI and intersatellite links with full service in the second half of 2027. And fifth, Satellogic is well capitalized to respond to strong market demand. We are operating from a position of strength with $112.8 million in cash, debt principal reduced to $18 million and strong market traction with sovereign customers across all of our product lines. With that, operator, please open the line for questions. Operator: [Operator Instructions] The first question we have comes from Andres Sheppard of Cantor Fitzgerald. Andres Sheppard-Slinger: Congratulations on the quarter. Rick, wishing you all the best as well. It's been great working with you. And again, wishing you all the best. In terms of questions, first one is on Merlin. So you reaffirmed that Merlin is on track for the October launch window, which is very exciting. I guess a few quick questions here is, Emiliano, can you maybe remind us what are the key milestones left towards bringing it to the path that investors should be tracking? And more importantly, as we move towards operational capacity next year, my other question there is, how are you thinking about the cadence for future launches? And how quickly do you think you could potentially ramp up? Thank you. Emiliano Kargieman: Excellent. Andres, thank you for the question. So yes, Merin is fully on track now for our first launch window, which is in October. The -- all of the functional tests, all of the environmental tests on the satellite have been performed. 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. So on the Satellogic side, I would say, is the shipping and receiving the satellite in the other side and the launch campaign, so putting satellite in the rocket, which we've done already 50 -- more than 50 times in the past. So it's something that we're quite familiar with. And then the satellite will go up in October. There's a commissioning phase for the first satellite. While, we continue to produce the next Merlin satellite that will be launched in 2 launches in 2027. 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. We might -- and we are expecting to work with some of our anchor customers and initial customers as soon as we launch the first satellite in October to familiarize them with the data and to build the processing pipelines that they will need to operate at scale. So there will be a phase there of development -- software development with our initial customers. But yes, full service will be second half of 2027, we expect. Andres Sheppard-Slinger: Excellent. Thank you very much. That was very, very helpful. I appreciate all that color. And maybe just a quick follow-up. So your backlog increased materially quarter-over-quarter, and you provided a great slide with great granularity, which we appreciate. My question here is, you also talked about a lot of the macro landscape and things that are unfolding. So I guess my question is, what other opportunities are you currently potentially working on that are not included in the backlog that you might be able to maybe share with us? And how are you thinking about continuing to increase the pipeline going forward? Emiliano Kargieman: Yes. So we are experiencing, I think, good tailwinds from the market in the sense of growing demand internationally and in the U.S. Obviously, geopolitical tensions tend to increase the need for persistent intelligence. And so all customers and some of the customer conversations that we've been having over, I would say, the last few years are accelerating because of this. On top of that, there's an increase in defense budgets across the board from U.S. allies around the world, which is also helpful to build up these pipelines. And we also see a structural factor contributing here in the wide adoption of AI and analytics and integrating AI analytics into processing pipelines to deliver decision-grade intelligence in the defense and intelligence side. And analytics and AI are essentially allowing our customers to basically consume a lot more data at a faster pace and still derive the right signals that they need for intelligence. So I think all of these factors, we see contributing to increased demand. To respond to that demand, we have brought in some fantastic new members to our sales team that have the relationships and the international experience to help us bring what we're doing to customers at a faster pace, right? So we are responding to that demand. I think our pipeline is, I think, is very strong. So we continue to see traction in the market. We continue to see increased interest. And we expect that pipeline to continue to convert in the second half of the year into 2027 at a fast pace. Operator: The next question we have comes from Jeff Van Rhee of Craig-Hallum Capital Group. Jeff Van Rhee: Rick, it's certainly been a pleasure working with you. Wish you all the best. Emiliano, just a few things. I guess, Emiliano, on Aleph Observer, February 26 launch, I think you mentioned this was the year of pilots. Can you dive a little deeper there, maybe even quantify how many pilots, how are they progressing? What's the feedback, all of that relative to expectations? Any other color you'd share would be great. Emiliano Kargieman: Sure. Jeff. Thanks for the question. So yes, I mean, in reality, I would say we expected 2026, as we mentioned before, to be a year of pilots because typically, a new product like this requires customers to get familiar with it. And for them, particularly government customers on the defense side, it requires that they find the budgets to pay for distinct subscriptions and so on. So we expect that 2026 to be able to tap into a portion of their discretionary budgets or pilots and then those convert into full range services at a kind of the cadence that we expect or the number of sites that we expect them to monitor just going to 2027, right? I think we've been pleasantly surprised by the speed at which we are converting some of these pilots into full programs. I think the $80 million contract we announced a few months ago is a very good example. I think we went from the initial pilot to a full-scale program that's at $80 million per year in less than 6 months, I think. And so that's been a really good surprise. We obviously do not expect all of the pilots that we're doing to progress at the same speed, but that was a really good -- I think that is a really good indication of the traction that we're getting in the market. And the team is working -- actively working with customers across all of the geographies that we serve now on the initial pilot program. So we really expect to have more news to share in the second half of the year. Jeff Van Rhee: Got it. And more broadly then, just as I look at the pipeline or as you look at the pipeline, cycle times, deal sizes, deal types, competition, geography, I mean, any aspects that are notable in your mind that have changed maybe in the last 180, maybe even last 90 days? Emiliano Kargieman: Nothing out of what we have already commented on, which is we are seeing some of the conversations that we're having on accelerated time lines, let's say. We expect that typically, we would expect sovereign spaces and deals because they are large deals, they -- we expect typically longer sales cycles over a year or so. And we are seeing some cases in which we are seeing deals progress through the pipeline at a faster pace. This is also due to, I think, the factors that we mentioned before. So we're seeing some of the sales cycles on the Space Systems in particularly being compressed, which is good news. But in general, I would say the -- both business lines, Data and Analytics and Space Systems still follow the same patterns that we are expecting, right, with Space Systems being lumpier deals with longer sales cycles and Data and Analytics deals being smaller ticket sizes, faster sales cycles, but also subscription-based recurring revenue that helps us build a predictable base, right? So I think those business lines are behaving pretty much to expectation, I would say. Jeff Van Rhee: Yes. That's great. Maybe one last. I mean, I think certainly, you commented [indiscernible] is driving almost infinite need. AI wants all the sensor data it can provide. So I think with Merlin and a lot of things you're talking about, you're playing directly to that. But I'm curious on the AI front. Has your perspective on the AI impact on your business changed in any material ways last kind of 90, 180 days? Emiliano Kargieman: We believe that AI is here -- basically as a structural [ parts ] in our market is here to stay, right? Like we believe there is a huge impact in terms of the ability of our customers to consume more data at a faster pace and it creates more demand for the data that we produce and for constellations we produce in the future, right? So we think this is a structural change. We don't think this is a fad. So I think that supports our outlook into the future. I think it supports also this year being such a transformational year for the company and kind of a breakout year as we start to -- as Rick was saying, as we start to show the impact of our operating leverage by increasing our top line. But yes, nothing has fundamentally changed in our mind yet. I think we're seeing a lot of confirmation from the market of the trends. Jeff Van Rhee: Yes. Well, nice numbers. Love the incremental margins, a lot here to like. So congrats to you and the team. Operator: The next question we have comes from Suji Desilva of ROTH Capital Partners. Sujeeva De Silva: Best of luck in the transition, Rick. So on the data analytics revenue, it was very strong sequentially. I know you mentioned that customers upgrading to persistent monitoring. Can you talk about maybe the metrics that could show that kind of Q-over-Q strength is happening and maybe whether it will persist, things like ARPU or customer utilization, maybe anything that will help us understand the transition from imagery to persistent monitoring? Emiliano Kargieman: Yes. No, that's a super good question. And we're not sharing those metrics yet, but we're definitely collecting them. And we've had 2 quarters, almost -- less than 2 quarters since the launch of Aleph Observer. So we would like to observe the performance for a couple of more quarters before we start sharing metrics like ARPU or MRR or long-term customer value and so on, right? Like we think those are valuable as longer-term trends. But we're definitely looking at them, and we believe the subscription business that we're building on the data analytics side is really -- should have metrics compatible with Data-as-a-Service or Software-as-a-Service business models in general. So I think those are the benchmarks that we are using internally to measure performance. Sujeeva De Silva: Okay. Great. I look forward to those and they should probably tell a positive story when you do put them out. And then my other question is on the SynMax and SpaceKnow applications. It sounds like you're building a platform where more apps can be layered on. Is that sort of a virtuous circle that the apps bring customers to the platform? Or is there an actual business model financial contribution from these apps to you above and beyond the value-add of the network? Emiliano Kargieman: Yes. Well, there's the first -- I think the first thing that you guys mentioned with SpaceKnow and with SynMax is that we are bringing to our customers models trained for their specific use cases, best-of-breed models trying for the specific use cases. And this adds value to our customers directly. And it also, as mentioned before, allowed us to deliver more data that has a real impact, right? So I think it's a win for every party here. It's a lot of added value to customers. It's obviously a good business over time for partners, building the applications on top of our data. And to the extent that it allows us to deliver more data to more customers, it's a great win for Satellogic too, right? So we think it's super synergistic. You can expect to see more partners and more applications signed on top of our data feeds, particularly obviously, for Aleph Observer today, but also particularly as Merlin starts to become operational next year, this is going to be one of the ways in which we deliver value to the end customers, right? Operator: The next question we have comes from Alex Latimore of Northland Capital Markets. Alex Latimore: Best of luck, Rick, in the journey. I just have one question on Palantir. I was wondering if there are any insights into potential contract renewal later this year or early '27? Emiliano Kargieman: Yes. Thanks for the question, Michael. So we are -- we continue to work with Palantir as a great partner today, delivering data mostly to the U.S. government. We're not in a position today to confirm or any follow-on contracts with them, but they are -- have been a strong partner for us over the last 4.5 years, and the end customers are receiving a lot of value from this collaboration. So we have -- are working with them in discussing how these relationships with the end customer continue after the end of the current contract. Richard Dunn: Yes. I'll just jump in and add that -- just add real quick, Alex, and thanks for the question, that as you're aware, this relationship with Palantir has been structured -- historically has been structured as a barter transaction. So the net cash to us is 0. And I think we did that at a time where bringing them on board as a partner and establishing a relationship with them and getting them to use our data was super important. It continues to be super important, and we're optimistic about our ability to hopefully continue providing them with our data and analytics. But we're also at a different point in the business where we don't necessarily feel like we need to barter out our data and analytics at this point. So I think that they have -- they've used our data, they like our data. And hopefully, they'll continue to use our data, and we'll actually get cash for it. Alex Latimore: Great. Another one. So it sounds like there are many pilots in the work here. I was wondering if you had insights into the future here, if you can look into your crystal ball to see what the average deal size with sovereign nations might be going forward? Richard Dunn: Yes. I mean it's -- Emiliano, you can feel free to jump in, too, but it will continue to vary. It depends really deal to deal. And it's hard to put parameters around deal size. I think that we're certainly looking at 7 and 8 figure deals, that much I can say, but that's obviously a pretty wide range. It's just going to depend on the customer, their needs and how quickly they're able and willing to move on either data acquisition or a space systems deal. Alex Latimore: All right. Great. One final quick one. I was just wondering how much open capacity you currently have on your constellation? And then also, is it correct to think about full capacity, data subscription capacity on NewSat about $65 million? Richard Dunn: Yes. It's -- Emiliano will elaborate on this. But no, it's -- I wouldn't make that assumption on $65 million. I think that capacity is much less relevant from our perspective as we enter into persistent global monitoring and intelligence, and Emiliano can expand a bit on that. But I think we talked about capacity at a time where we had a lot of it and a lot of data to sell, and we had a slightly different business model. With Persistent Global Intelligence, it's just much less relevant. Emiliano Kargieman: Yes. No, look, I think there's the potential for significantly more than $65 million of revenue with our existing constellation on the data delivered through Aleph Observer and subscription programs. So no, I don't think that's a reasonable cap. There are several factors there. On one side, I would say we continue to have the largest unencumbered capacity in the market today. And we are adding customers and increasing revenue, but we don't -- that doesn't put a huge stand into the capacity in terms of what we can deliver in the future, not so far. The other thing I would say is -- you can expect that in many areas of the world where customers tend to cluster in terms of needs to monitor, we can deliver the same monitored sites to more than one customer. So there's not a one-to-one relationship between the number of sites that we capture and the number of customers that we can serve, right, with the same number of sites that we're capturing, we can serve more than a single customer. So basically, I would say the potential is significant. Operator: The next question we have comes from [ Adar ] of [ Freedom Capital Markets ]. Unknown Analyst: I have a couple. First, you previously described about Space Systems' pipeline of nearly $1 billion. And how much of it has a defined budget, may be some procurement time line or technical scope rather than still being early stage? Richard Dunn: Well, yes, our pipeline continues to be in that order of magnitude. And in order to make our pipeline, it all has a defined budget. So there's a customer with an identified need and a budget to move forward. So they're all qualified opportunities from our perspective. And -- I'm sorry, I lost the second part of your question. Unknown Analyst: Is the budget is still being in early stage or... Richard Dunn: I mean -- I think you're asking -- I'm not sure what you're asking, but I'll try and answer it. Anyway, the pipeline -- each deal in the pipeline is at a different stage depending on the customer and the length of time we've been talking to them and their ability to move and desire to move more quickly than more slowly. So each one of these sovereign deals is very unique. The buyer is very unique. Their process is unique and how long they take to convert is sort of all over the map. We can -- on a Space Systems deal, we've done them as quickly as -- we've converted them as quickly as 4 to 6 months and as long as 3 years. With Data and Analytics, those tend to convert much quicker, and they don't really linger on the pipeline that long because there's typically a process and the customer either makes a data buy from us or they don't, and then they cycle off the pipeline. Hopefully, that answers your question. Unknown Analyst: Okay. That's really helpful. So -- and the second one is related to defense missions. So for which defense missions does 1 meter resolution coverage remains sufficient and where customers is increasingly requiring better resolution imagery for qualify for procurement? Emiliano Kargieman: Yes, I can take that. Thank you. So our current constellation delivering 50-centimeter resolution imagery is really at the sweet spot of the requirements for most defense customers. And if you ask customers, they will always want the highest possible resolution. If you can deliver 30 centimeters, they will want 30 centimeters, you can deliver 15 centimeters, they will probably want them too. The real point here is you need to be able to deliver the imagery over the sites that are interested in monitoring. So 30-centimeter resolution imagery is fantastic. But if you can only deliver 1 image every 3 days to the customer, then it doesn't really fit in operational demand. I think what we're doing with Aleph Observer and Persistent Global Intelligence infrastructure in general, by being able to deliver consistent imagery on a daily basis over thousands of sites to our customers, we are giving them the ability to look at things that they've never been able to see before, right? So more than resolution, I think what is important here is that actionability. What can you see in the images, -- it's not a number. It's what can you see there? Is the equipment there? Is the aircraft carrier where it was before? Is the submarine where it was before? Have things moved? This kind of situational awareness on a daily basis that Aleph Observer empowers our customers to do is something very new. And I think that's where the value lies more than in any specific number in terms of resolution or anything else. Operator: At this stage, there seems to be no further questions. I will now hand the call over to Emiliano for closing remarks. Please go ahead. Emiliano Kargieman: Thank you, operator, and thank you all for joining us today. The second quarter was the quarter that Satellogic crossed over. We are building the infrastructure for Persistent Global Intelligence, continuous proactive awareness of the places, assets and activities that matter. We intend to lead this category as it forms, and we look forward to updating all of you on our progress next quarter. If we were unable to address any of your questions today, please reach out to our Investor Relations team at [email protected]. Thank you, and have a good afternoon. Operator: Thank you. Ladies and gentlemen, that then concludes today's conference. Thank you for joining us. You may now disconnect your lines. Before you buy stock in Satellogic, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Satellogic wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Satellogic (SATL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Satellogic Inc. SATL used its second-quarter 2026 earnings call to emphasize a transition from episodic satellite imagery toward subscription-based persistent monitoring, while laying out a clearer deployment timeline for its Merlin constellation. Management also highlighted rising sovereign and defense demand, stronger contracted visibility and operating leverage. Founder and CEO Emiliano Kargieman said second-quarter revenue rose 259% year over year to $15.9 million, while the company posted its first positive operating income and adjusted EBITDA. CFO Richard Dunn said operating expenses increased 46% against the much faster revenue growth, helping produce $0.3 million of operating income and $2.8 million of adjusted EBITDA. The reported loss of 13 cents per share missed the Zacks Consensus Estimate of a 3-cent loss. Revenue of $15.92 million exceeded the Zacks Consensus Estimate of $9.33 million. Dunn said the GAAP net loss included a $19.7 million noncash fair-value charge tied to financial instruments. Satellogic Inc. price-consensus-eps-surprise-chart | Satellogic Inc. Quote CFO Richard Dunn said remaining performance obligations reached $80.7 million at quarter-end, with $45.8 million expected to convert to revenue within the next 12 months. Dunn also pointed to $112.8 million of cash and cash equivalents and said secured convertible note principal fell to $18 million after a $12 million conversion during the quarter. Founder and CEO Emiliano Kargieman also disclosed that Dunn will leave the CFO role Aug. 21. Senior Vice President and Corporate Controller Dustin Greer will become interim CFO if a permanent successor has not been appointed. Founder and CEO Emiliano Kargieman said the first Merlin satellite had completed functional and environmental testing and was ready to ship for an October 2026 SpaceX Transporter launch window. In the Q&A, Kargieman told a Cantor Fitzgerald analyst that two additional Merlin launches are planned for the first half of 2027, with full service expected in the second half. CFO Richard Dunn said the company expects to cross into positive free cash flow in 2027 as Merlin enters operational service, tying the constellation build-out directly to the next profitability milestone. Founder and CEO Emiliano Kargieman said geopolitical tensions, higher defense budgets among U.S. allies and broader adoption of AI-based analytics are accelerating some customer conversations. In response to a Craig-Hallum analyst, Kargieman said Space Systems deals remain larger and lumpier, but some sales cycles are compressing from the longer timelines management typically expects. CFO Richard Dunn later told a Freedom Capital Markets analyst that the Space Systems pipeline remains around $1 billion and consists of qualified opportunities with defined budgets, although conversion timing varies widely by customer. Founder and CEO Emiliano Kargieman said Data and Analytics revenue reached $7.1 million, up 54% sequentially, as customers moved toward persistent monitoring subscriptions through Aleph Observer. Kargieman told a Craig-Hallum analyst that management has been surprised by how quickly some pilots are converting into larger programs, while cautioning that not every pilot will progress at the same pace. Asked by a ROTH Capital Partners analyst about subscription metrics, Kargieman said Satellogic is collecting measures such as ARPU and recurring revenue but wants more operating history before disclosing them. Founder and CEO Emiliano Kargieman closed the call by emphasizing operating leverage, persistent monitoring, vertical integration and the Merlin build-out as the company’s central priorities. Management’s outlook centered on converting the existing defense pipeline, expanding subscription-based monitoring and executing the 2026-2027 launch schedule without signaling a change in those priorities. SATL currently carries a Zacks Rank #3 (Hold). Its Style Scores are mixed, with an A for Momentum, C for Growth, F for Value and D for VGM. Under the Zacks grading hierarchy, the Momentum Score is favorable, while the Value and combined VGM Scores are less favorable. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Style Scores are designed to complement the Zacks Rank, with A and B scores generally carrying stronger expected-performance characteristics than lower grades. The Zacks Rank can change as earnings estimates are revised after the just-reported results, so the current signal is not static. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Satellogic Inc. (SATL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved first-ever positive operating income and adjusted EBITDA, validating the operating leverage of a vertically integrated model where revenue grew 259% against a 46% increase in expenses. Successfully transitioned the business model from transactional, episodic imagery sales to 'Persistent Global Intelligence' subscriptions, which provide continuous situational awareness rather than fragmented snapshots. Leveraged a differentiated cost structure, with NewSat satellites costing approximately $1.3 million each, to make theater-scale persistent monitoring economically viable for sovereign defense customers. Expanded the Data and Analytics business line by 54% sequentially, driven by the Aleph Observer platform converting one-off buyers into multi-quarter monitoring subscribers. Secured four key sovereign and defense milestones, including an $18 million international defense agreement that moved from initial trial to full-scale deployment in under six months. Strengthened strategic positioning through AI collaborations with SynMax and SpaceKnow to build automated geospatial intelligence products that deliver decision-grade data at scale. Maintained a strong liquidity position with $112.8 million in cash and reduced secured convertible debt from $30 million to $18 million through equity conversion. Projecting 2026 as a major step toward sustained profitability, with expectations to cross into positive free cash flow in 2027 as the Merlin constellation enters operational service. Merlin constellation remains on track for an October 2026 initial launch, with full service expected in the second half of 2027 to create a daily global remap detection layer. Anticipating strong top-line visibility with $45.8 million of the $80.7 million total remaining performance obligations (RPO) expected to be recognized within the next 12 months. Strategy focuses on an 'AI-first automated loop' where Merlin detects changes, NewSat sustains monitoring, and NextGen (30-cm class) verifies activity to provide integrated decision advantages. Management expects continued compression of sales cycles for sovereign defense deals due to heightened geopolitical urgency and increased defense budgets among U.S. allies. Announced the departure of CFO Rick Dunn effective August 21, 2026, with Dustin Greer appointed as Interim CFO to ensure a seamless transition during the search for a permanent successor. Reported a GAAP net loss of $20 million for the quarter, primarily driven by a $19.7 million non-cash fair value charge related to the remeasurement of financial instruments tied to stock price movement. Noted that adjusted operating cash flow reached breakeven at $100,000 for the first half of the year when including $8.3 million in proceeds from the sale of an in-orbit satellite. Highlighted the addition of retired Lieutenant General Michael E. Williamson to the Board of Directors to strengthen defense and sovereign market expertise. The first Merlin satellite (MELI 1) is fully integrated and ready for an October SpaceX launch, to be followed by two additional launches in the first half of 2027. Full service is expected by H2 2027, though anchor customers will begin software development and pipeline integration immediately following the initial October launch. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expressed surprise at the conversion speed, noting one pilot transitioned to a full-scale $80 million program in less than six months. While not all pilots will convert that rapidly, the company is seeing a structural shift where defense customers prioritize persistent monitoring over transactional buys. The current relationship is a barter transaction with zero net cash; management indicated that while the partnership remains strong, they no longer feel the need to barter data as the business matures. Discussions are ongoing regarding how the relationship with the end customer (U.S. Government) will continue after the current contract expires. Management dismissed the idea of a $65 million revenue cap on the current fleet, stating the potential is significantly higher due to the ability to sell the same monitored sites to multiple customers. The shift to 'Persistent Global Intelligence' makes traditional capacity metrics less relevant as the company leverages the largest unencumbered capacity in the market. While customers always desire higher resolution, management argued that 50-cm resolution is the 'sweet spot' when combined with daily persistence. Actionability—the ability to see if assets have moved on a daily basis—is currently prioritized by customers over pure resolution numbers.

Interested in Satellogic Inc.? Here are five stocks we like better. Satellogic reported sharply improved financial results: Second-quarter revenue jumped 259% year over year to $15.9 million, with positive operating income and adjusted EBITDA for the first time. However, it still posted a $20 million GAAP net loss, largely due to a $19.7 million non-cash fair-value charge. Space systems and recurring data subscriptions drove growth. The company ended June with $80.7 million in contracted remaining performance obligations, including an $18 million-plus Aleph Observer defense agreement, while data and analytics revenue rose 54% sequentially. Satellogic continues investing in future expansion and profitability. Merlin 01 remains scheduled for a SpaceX launch in October 2026, with full constellation service targeted for the second half of 2027; management expects positive free cash flow in 2027, though CFO Rick Dunn is departing on Aug. 21. 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. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control 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. → 3 Drone Stocks That Should Soar After the Summer Slump 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. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure “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. 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. 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. 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. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Satellogic Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Satellogic Inc (NASDAQ:SATL) achieved record Q2 2026 revenue of $15.9 million, a 259% year-over-year increase, and reported its first-ever positive operating income and adjusted EBITDA of $2.8 million. The company's contracted non-cancellable backlog (RPO) stands at $80.7 million, with $45.8 million expected to be recognized within the next 12 months, providing strong top-line visibility. Satellogic Inc (NASDAQ:SATL) is seeing strong traction in its persistent monitoring subscription business, with data and analytics revenue growing 54% sequentially to $7.1 million in Q2. The company's Merlin constellation remains on track for its first launch in October 2026, with the first satellite fully integrated and ready to ship, and the program is fully funded. Satellogic Inc (NASDAQ:SATL) ended the quarter with a strong liquidity position of $112.8 million in cash and reduced its secured convertible debt from $30 million to $18 million through an equity conversion. The company is capitalizing on strong sovereign and defense demand, securing multiple key contracts including an $18 million defense agreement and a $12 million satellite delivery deal. Satellogic Inc (NASDAQ:SATL) reported a GAAP net loss of $20 million for the quarter, largely due to a $19.7 million non-cash fair value charge from the remeasurement of financial instruments tied to stock price movement. The company's GAAP operating cash flow was negative at $8.6 million in Q2, and only break-even on an adjusted basis when including proceeds from an in-orbit satellite sale. Satellogic Inc (NASDAQ:SATL) is undergoing a CFO transition, with Rick Dunn departing on August 21, 2026, and a permanent successor has not yet been appointed, creating potential leadership uncertainty. The company's relationship with Palantir has historically been structured as a barter transaction with zero net cash, and the future of this partnership beyond the current contract remains uncertain. While the pipeline is strong, space systems deals remain lumpy with long and variable sales cycles, ranging from four months to three years, which can create revenue unpredictability. The company is not yet sharing key subscription metrics like ARPU or MRR, making it difficult for investors to fully assess the growth and profitability of its persistent monitoring business. Warning! GuruFocus has detected 5 Warning Signs with SATL. Is SATL fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an update on the key milestones remaining for the Merlin satellite before its October launch, and what is the expected launch cadence and ramp-up timeline for the full constellation?A: Emiliano Kargieman (CEO): Merlin is fully on track for its first launch window in October 2026. The satellite has passed all functional and environmental tests and is packaged and ready to ship to the launcher (SpaceX Transporter mission). The next steps are shipping, integration into the launch vehicle, and the launch campaign, a process we've completed over 50 times. After the October launch, there will be a commissioning phase while we produce the next satellites. We expect two launches in the first half of 2027 to complete the constellation, with full service delivery beginning in the second half of 2027. We will work with anchor customers immediately after the first launch to build processing pipelines. Q: Your backlog increased materially quarter-over-quarter. What other opportunities are you currently working on that are not included in the backlog, and how are you thinking about growing the pipeline?A: Emiliano Kargieman (CEO): We are experiencing strong tailwinds from increased geopolitical tensions, rising defense budgets among U.S. allies, and the structural adoption of AI in analytics. These factors are accelerating customer conversations and compressing sales cycles. We have expanded our sales team with senior leaders to capture this demand. Our pipeline is very strong, and we expect continued conversion in the second half of 2026 and into 2027. Q: You launched Aleph Observer in February and called 2026 the "year of pilots." Can you quantify how many pilots are progressing, the feedback, and how this compares to expectations?A: Emiliano Kargieman (CEO): We expected 2026 to be a year of pilots as customers familiarize themselves with the new product and secure budgets. We have been pleasantly surprised by the speed of conversion from pilots to full programs. The $18 million contract we announced is a prime example, moving from an initial trial to a full-scale program in under six months. While we don't expect all pilots to progress at this speed, it's a strong indication of market traction. The team is actively working with customers across all geographies, and we expect more news in the second half of the year. Q: On the data and analytics revenue, it was very strong sequentially. Can you talk about metrics that show the transition to persistent monitoring, such as ARPU or customer utilization?A: Emiliano Kargieman (CEO): We are not yet sharing those specific metrics (ARPU, MRR, customer lifetime value) as we want to observe performance for a few more quarters to establish longer-term trends. However, we are collecting them and internally benchmarking our subscription business against standard data service and software service models. We believe this subscription business will show positive trends when we do release the metrics. Q: Regarding the collaborations with Synmax and Spaceno, is there a direct financial contribution from these AI application partners, or is the value primarily in bringing customers to the platform?A: Emiliano Kargieman (CEO): The primary value is synergistic. These partnerships bring best-of-breed, use-case-specific AI models to our customers, which adds direct value and allows us to deliver more impactful data. It's a win for all parties: customers get better insights, partners build applications on our data, and Satellogic benefits by delivering more data to more customers. You can expect more partners and applications to be signed, especially as Merlin becomes operational next year. Q: Are there any insights into a potential contract renewal with Palantir later this year or in early 2027?A: Rick Dunn (CFO): We continue to work with Palantir as a strong partner, delivering data mostly to the U.S. Government. We are not in a position to confirm follow-on contracts, but they have been a strong partner for 4.5 years. Historically, this relationship was structured as a barter transaction with zero net cash. While that was important for establishing the relationship, we are at a different point in our business now and don't feel the need to barter our data. We are optimistic about continuing the relationship, but we would expect to receive cash for our data and analytics going forward. Q: Can you provide insights into the potential average deal size with sovereign nations going forward?A: Rick Dunn (CFO): Deal sizes will continue to vary significantly depending on the customer and their specific needs. We are certainly looking at seven and eight-figure deals, but that is a wide range. The size depends on the customer's requirements, their ability to move quickly, and whether it's a data acquisition or a space systems deal. Q: How much open capacity do you currently have on your constellation, and is it correct to think of full data subscription capacity on NuSat at about $65 million?A: Emiliano Kargieman (CEO): No, $65 million is not a reasonable cap. With our existing constellation and subscription programs, there is potential for significantly more revenue. We have the largest unencumbered capacity in the market. Furthermore, in areas where customers cluster, we can deliver the same monitored sites to more than one customer, so there isn't a one-to-one relationship between sites captured and customers served. The capacity for growth is significant. Q: You previously described a space systems pipeline of nearly $1 billion. How much of that has a defined budget, procurement timeline, or technical scope versus being early stage?A: Rick Dunn (CFO): Our pipeline continues to be in that order of magnitude. To be in our pipeline, every opportunity must have a defined budget, an identified customer need, and a qualified status. Each deal is at a different stage of progression, as sovereign deals are very unique. Conversion times can range from as quickly as four to six months to as long as three years. Data and analytics deals convert much faster and don't linger in the pipeline. Q: For which defense missions is one-meter resolution coverage efficient, and where are customers increasingly requiring better resolution for procurement?A: Emiliano Kargieman (CEO): Our current 50-centimeter resolution is at the sweet spot for most defense customers. While customers always want the highest resolution possible, the real value lies in actionability and consistency. Delivering 30-centimeter imagery every three days doesn't fit operational demands. Our persistent monitoring infrastructure provides daily imagery over thousands of sites, enabling situational awareness For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Revenue Increased 259% Year-over-Year to $15.9 Million as Company Achieved First Quarter of Positive Operating Income and Positive Adjusted EBITDA Ended Second Quarter with $112.8 Million in Cash and $80.7 Million in Remaining Performance Obligations Executed on Sovereign Satellite Deliveries, Expanded Persistent Global Intelligence and Earth Observation Monitoring Partnerships, and Advanced International Defense Programs Management to Host Webcast and Conference Call August 5, 2026 at 4:30 p.m. ET NEW YORK, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Satellogic Inc. (NASDAQ: SATL), the infrastructure company for Persistent Global Intelligence (PGI), today reported its financial results for the second quarter ended June 30, 2026. “The second quarter delivered a decisive demonstration of the operating leverage in our vertically-integrated PGI infrastructure model,” said CEO Emiliano Kargieman. “Strong operational execution drove a 259% year-over-year increase in our revenue, delivering $15.9 million in the quarter. Additionally, we generated positive operating income and positive Adjusted EBITDA. This is the inflection point we have been building toward — a business capable of converting commercial momentum into profitability. “We have already successfully delivered the first satellite to Portugal’s CEiiA program, representing the halfway point in the $18 million two-satellite program.  We also continued to advance the infrastructure behind PGI. During the quarter we announced strategic collaborations with SynMax and SpaceKnow to develop AI-powered geospatial intelligence products on our platform, and we expanded our international defense engagements, including an additional one-year agreement valued at more than $18 million with an international defense customer, as well as a $12 million agreement to deliver an in-orbit satellite to a sovereign defense customer.  Our Merlin constellation — the fully-funded, AI-first detection layer that will take our work with Aleph Observer from known-site monitoring to whole-world continuous awareness — remains on track for a first launch in the fourth quarter of 2026 and full operational capability in the first half of 2027. We have a capital-efficient constellation built for rapid replenishment, one of the largest high-resolution constellations in the world, a repeatable commercial engine, and the technology and IP leadership needed to achieve true global persistent monitoring. Satellogic is positioned to deliver the sovereign-trusted decision advantage that defense, intelligence, government, and commercial customers demand,” concluded Kargieman. Rick Dunn, Satellogic CFO, added, “Our second quarter results mark a milestone in the financial evolution of the Company. Revenue grew 259% year-over-year to $15.9 million; operating income was positive $0.3 million, an improvement of $6.6 million from an operating loss of $6.3 million in the prior-year period. Net loss for the quarter was $20.0 million and included a $19.7 million non-cash charge relating to the change in fair value of financial instruments, driven primarily by the appreciation of our stock price during the quarter and the corresponding remeasurement of our Secured Convertible Notes, warrants and earnout liabilities. This fair value charge is non-cash and is not indicative of our underlying operating performance. On a Non-GAAP basis, adjusted EBITDA was positive $2.8 million, a $6.7 million improvement from a $3.9 million loss a year ago and the first quarter of positive Adjusted EBITDA in our history. These results reflect the combination of top-line growth and the cost discipline we have maintained as we scale our business. “We continue to strengthen our capital structure: during the quarter the noteholder converted $12.0 million of principal into 10.0 million shares of Class A common stock, reducing outstanding Secured Convertible Note principal to $18.0 million from $30.0 million at year-end 2025. We ended the quarter with $112.8 million in cash and cash equivalents and remaining performance obligations of $80.7 million, providing both the capital and the contracted visibility to execute our strategy, including the continued build-out of the Merlin constellation,” concluded Dunn. Second Quarter 2026 and Subsequent Operational Highlights Grew total revenue 259% year-over-year to $15.9 million, with Data & Analytics revenue (including Constellation-as-a-Service) of $7.1 million and Space Systems revenue of $8.8 million. Reported a GAAP net loss of $20.0 million in the second quarter, and GAAP operating income of $0.3 million—marking the first quarter of positive operating income in the Company’s history. Reflecting the operating leverage of its vertically integrated model, the Company also generated positive Adjusted EBITDA of $2.8 million. Announced separate strategic collaborations with SynMax and SpaceKnow to develop and deliver AI-powered geospatial intelligence products for defense, intelligence, and commercial customers, building on the Company’s Persistent Global Intelligence (PGI) infrastructure. Appointed retired U.S. Army Lieutenant General Michael E. Williamson as an independent director, bringing more than three decades of leadership experience in defense acquisition, technology integration, and global business development. Signed a one-year agreement valued at more than $18 million with an international defense customer for persistent, high-frequency Earth observation imagery, representing an expansion from an initial trial to full-scale deployment in under six months. Announced the addition of three senior industry veterans to its global sales organization: Matt Clark, Brett Davis, and Jonathan Lee. Signed a $12 million agreement with a sovereign defense customer for the sale and full transfer of ownership and operations of a commissioned, in-orbit NewSat satellite from the Company’s operational Aleph-1 constellation, together with support to develop independent command and data-processing capabilities. Converted $12.0 million of Secured Convertible Note principal into 10.0 million shares of Class A common stock during the quarter, reducing outstanding principal to $18.0 million from $30.0 million at year-end 2025 and continuing the orderly de-risking of the capital structure. Continued the build-out of the Merlin constellation, the Company’s AI-first satellite system designed to remap the entire planet daily at 1-meter resolution. The first launch is on track for the fourth quarter of 2026 and full operational capability is expected in the first half of 2027. Merlin is fully funded by existing customer contracts and does not require incremental capital to reach those milestones. Operated one of the largest high-resolution commercial constellations, delivering the high-frequency revisit rates and continuous coverage required for Persistent Global Intelligence. Financial Results for the Three Months Ended June 30, 2026 Revenue for the three months ended June 30, 2026 increased by $11.5 million, or 259%, to $15.9 million, compared to $4.4 million in the prior-year period. Growth was driven primarily by a $3.2 million increase in imagery ordered by new and existing Data & Analytics customers and a $8.3 million increase in Space Systems revenue. The Data & Analytics line of business, including Constellation-as-a-Service (CaaS), generated $7.1 million of revenue versus $4.0 million in the prior-year period, while the Space Systems line of business generated $8.8 million of revenue versus $0.5 million in the prior-year period. Cost of Revenue, exclusive of depreciation, increased $1.6 million, or 137%, to $2.8 million for the three months ended June 30, 2026, compared to $1.2 million in the prior-year period. The increase was driven primarily by higher Space Systems costs associated with product revenue growth. Engineering expenses increased $0.7 million, or 32%, to $3.1 million for the three months ended June 30, 2026, compared to $2.3 million in the prior-year period. The increase was driven primarily by higher salaries, wages and other benefits and stock-based compensation resulting from workforce increases in 2026. Selling, General and Administrative expenses increased $3.3 million, or 61%, to $8.6 million for the three months ended June 30, 2026, compared to $5.4 million in the prior-year period. The increase was driven primarily by higher salaries and headcount, increased stock-based compensation, and higher travel and related expenses reflecting increased selling activity. Operating income for the three months ended June 30, 2026 was $0.3 million, an improvement of $6.6 million compared to an operating loss of $6.3 million in the prior-year period, and the first quarter of positive operating income in the Company’s history, reflecting the operating leverage of the Company’s vertically integrated model. Net loss for the three months ended June 30, 2026 was $20.0 million, compared to a net loss of $6.7 million in the prior-year period. The increase in net loss was primarily driven by a $19.7 million non-cash charge in the change in fair value of financial instruments, reflecting the remeasurement of the Company’s Secured Convertible Notes, warrants, and earnout liabilities. The remeasurement was primarily  a result of the increase in the Company’s Class A common stock trading price and partial convertible note conversions during the quarter, partially offset by fair value appreciation of the Company’s equity investment in Officina Stellare, and is not indicative of underlying operating performance. Non-GAAP Adjusted EBITDA improved by $6.7 million to positive $2.8 million for the three months ended June 30, 2026, compared to an Adjusted EBITDA loss of $3.9 million in the prior-year period, representing the first quarter of positive Adjusted EBITDA in the Company’s history and reflecting increased revenue and continued operating discipline. Cash and cash equivalents totaled $112.8 million as of June 30, 2026, compared to $94.4 million as of December 31, 2025. Net cash used in operating activities was $8.6 million for the three months ended June 30, 2026, compared to $4.3 million in the prior-year period. For the six months ended June 30, 2026, net cash used in operating activities was $8.5 million, a $0.6 million improvement from $9.1 million in the prior-year period. In accordance with US GAAP, $8.3 million in proceeds from the sale of an in-orbit satellite were classified within investing activities on the GAAP Consolidated Statement of Cash Flows. On a Non-GAAP Adjusted Operating Cash Flow basis—which includes these satellite sale proceeds—Adjusted Operating Cash Flow was $(0.3) million for the second quarter of 2026, compared to $(4.3) million in the prior-year period. For the first six months of 2026, Adjusted Operating Cash Flow was $(0.1) million, compared to $(9.1) million in the prior-year period. Remaining performance obligations as of June 30, 2026 totaled $80.7 million, with $45.8 million expected to be recognized as revenue within one year, $9.3 million in years one to two, $7.2 million in years two to three, and $18.4 million thereafter. Second Quarter Fiscal Year 2026 Financial Results Conference Call Satellogic’s Chief Executive Officer Emiliano Kargieman and Chief Financial Officer Rick Dunn will host a conference call, followed by a question-and-answer period. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed following the call via the investor relations section of the Company’s website. To access the call, please use the following information: A telephone replay will be available approximately three hours after the call and will run through August 19, 2026, by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and entering replay pin number: 13761600. The replay can also be viewed through the webcast link above and the presentation utilized during the call will be available in the Company’s investor relations section here. Use of Non-GAAP Financial Measures To supplement our Condensed Consolidated Financial Statements, which are prepared and presented in accordance with U.S. GAAP, we use the following non-GAAP measures: EBITDA, Adjusted EBITDA, Free Cash Flow, and Adjusted Operating Cash Flow. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. We define Non-GAAP EBITDA as net loss excluding interest income, net, income taxes, depreciation and amortization. Interest income, net is interest income less interest expense. We did not incur amortization expense during the three and six months ended June 30, 2026 and 2025. We define Non-GAAP Adjusted EBITDA as Non-GAAP EBITDA further adjusted for other (expense) income, net, changes in the fair value of financial instruments, and stock-based compensation. Other (expense) income, net consists primarily of foreign currency gains and losses. We define Non-GAAP Free Cash Flow as net cash used in operating activities, less payments for capital expenditures, plus proceeds from the sale of in-orbit satellites. We define Non-GAAP Adjusted Operating Cash Flow as net cash used in operating activities plus proceeds from the sale of in-orbit satellites. As of January 1, 2026, we updated our methodology to exclude interest income from EBITDA and Adjusted EBITDA. This change aligns our reporting with industry peers and better serves our goal of providing useful information regarding our operating performance by ensuring that non-operating income and losses are excluded from our Non-GAAP profitability measures. The prior period has been recast using the updated methodology. Non-GAAP Financial Measure Reconciliations The following table presents a reconciliation of Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA to our net loss for the periods indicated. (1) Other expense (income), net includes foreign exchange gain or loss and other non-operating income and expenses not considered indicative of our ongoing operational performance. The following table presents a reconciliation of Non-GAAP Free Cash Flow to cash flows used in operating activities for the periods indicated. The following table presents a reconciliation of Non-GAAP Adjusted Operating Cash Flow to cash flows used in operating activities for the periods indicated. About Satellogic Founded in 2010, Satellogic (NASDAQ: SATL) is building the infrastructure for Persistent Global Intelligence (PGI): continuous, proactive awareness of the places, assets, and activities that matter. The company combines high-cadence satellite collection, best-in-class technology, AI-accelerated workflows, and sovereign-capable architecture to help customers move from episodic imagery to persistent monitoring programs. Satellogic serves allied defense and intelligence agencies, civil governments, and commercial markets that need reliable, scalable awareness of change across large portfolios of sites. Customers can begin with discovery, expand into persistent monitoring, and build toward dedicated or sovereign-controlled capacity as their mission requirements grow. To learn more, please visit: https://www.satellogic.com Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the U.S. federal securities laws. The words “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intends”, “may”, “might”, “plan”, “possible”, “potential”, “predict”, “project”, “should”, “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements are based on Satellogic’s current expectations and beliefs concerning future developments and their potential effects on Satellogic. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. These statements are based on various assumptions, whether or not identified in this press release. These forward-looking statements are provided for illustrative purposes only and are not intended to serve, and must not be relied on by an investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Satellogic. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) our ability to generate revenue as expected, including due to challenges created by macroeconomic concerns, geopolitical uncertainty (e.g., trade relationships), financial market fluctuations and related factors, (ii) our ability to effectively market and sell our PGI services and to convert our pipeline of potential contracts into actual revenues, (iii) market acceptance of our PGI services and our dependence upon our ability to keep pace with the latest technological advances, including those related to artificial intelligence and machine learning, (iv) risks related to the secured convertible notes, (v) the potential loss of one or more of our largest customers, (vi) the considerable time and expense related to our sales efforts and the length and unpredictability of our sales cycle, (vii) risks and uncertainties associated with defense-related contracts, (viii) risks related to our pricing structure, (ix) our ability to scale production of our satellites as planned, (x) unforeseen risks, challenges and uncertainties related to our expansion into new business lines, (xi) our dependence on third parties, including SpaceX, to transport and launch our satellites into space, (xii) our reliance on third-party vendors and manufacturers to build and provide certain satellite components, products, or services and the inability of these vendors and manufacturers to meet our needs, (xiii) our dependence on ground station and cloud-based computing infrastructure operated by third parties for value-added services, and any errors, disruption, performance problems, or failure in their or our operational infrastructure, (xiv) risks related to certain minimum service requirements in our customer contracts, (xv) our ability to identify suitable acquisition candidates or consummate acquisitions on acceptable terms, or our ability to successfully integrate acquisitions, (xvi) competition for PGI services, (xvii) risks related to changes in tax laws and regulations, including the “One Big Beautiful Bill Act,” (xviii) risks related to changes in trade policy and the related impact on macroeconomic conditions, including further expansions of U.S. export controls and tariffs, as well as related retaliatory actions, (xix) challenges with international operations or unexpected changes to the regulatory environment in certain markets, (xx) unknown defects or errors in our products, (xxi) risks related to the capital-intensive nature of our business and our ability to raise adequate capital to finance our business strategies, (xxii) uncertainties beyond our control related to the production, launch, commissioning, and/or operation of our satellites and related ground systems, software and analytic technologies, (xxiii) the failure of the market for PGI services to achieve the growth potential we expect, (xxiv) risks related to our satellites and related equipment becoming impaired, (xxv) risks related to the failure of our satellites to operate as intended, (xxvi) production and launch delays, launch failures, and damage or destruction to our satellites during launch, (xxvii) significant risks and uncertainties related to our insurance that may not be covered by insurance, (xxviii) the impact of geopolitical disruptions (including the ongoing conflict in the Middle East), natural disasters, unusual or prolonged unfavorable weather conditions, public health emergencies or other developments outside of our control on our business and satellite launch schedules, (xxix) risks related to our ability to protect our intellectual property critical to the design and function of our satellites and our PGI services, and (xxx) the anticipated benefits of our domestication may not materialize. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Satellogic’s Annual Report on Form 10-K and other documents filed or to be filed by Satellogic from time to time with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Satellogic assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Satellogic can give no assurance that it will achieve its expectations. Contacts Investor Relations:[email protected] Media Relations:[email protected]

EchoStar (ECHO) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of a loss of $0.29 per share. This compares to a loss of $1.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +165.52%. A quarter ago, it was expected that this seller of set-top boxes and provider of satellite services to Dish Network would post a loss of $0.87 per share when it actually produced a loss of $0.33, delivering a surprise of +62.07%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. EchoStar, which belongs to the Zacks Satellite and Communication industry, posted revenues of $3.58 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.95%. This compares to year-ago revenues of $3.72 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. EchoStar shares have lost about 22.6% since the beginning of the year versus the S&P 500's gain of 9.4%. While EchoStar has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for EchoStar was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.01 on $3.46 billion in revenues for the coming quarter and -$1.93 on $14.28 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Satellite and Communication is currently in the bottom 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Satellogic Inc. (SATL), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Satellogic Inc.'s revenues are expected to be $9.33 million, up 110.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EchoStar Corporation (ECHO) : Free Stock Analysis Report Satellogic Inc. (SATL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Satellogic Inc. SATL is set to report second-quarter 2026 results on Aug. 5, after market close. The Zacks Consensus Estimate for revenues is pinned at $9.33 million, up 110.1% from the prior-year reported number. The consensus estimate for the bottom line is pinned at a loss of 3 cents per share compared with a loss of 6 cents reported in the year-ago quarter. The estimate has remained unchanged in the past 60 days.SATL’s earnings beat the Zacks Consensus Estimate in the trailing two quarters. Image Source: Zacks Investment Research In the past year, shares of the company have gained 7.1% compared with the Zacks Satellite and Communication industry’s growth of 169.9%. Our proven model does not predict an earnings beat for Satellogic this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. This is not the case here.SATL has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Investors' focus will be on the sustainability of the company’s strong commercial momentum, execution of sovereign contracts and progress toward profitability. Satellogic witnessed increasing traction in the first quarter, driven by the commercial momentum across sovereign defense and recurrent intelligence subscriptions along with deepening U.S. government engagement.  On the last earnings call, management highlighted the first quarter as an inflection point and expressed confidence that its existing cost base, recurring revenue from Aleph Observer and a pipeline of “multimillion-dollar opportunities” across defense, sovereign and commercial customers mark a step towards sustainable profitability. The company’s pipeline for Space Systems opportunities is approaching $1 billion, reflecting long-term demand visibility. First-quarter revenues surged 80% year over year to $6.1 million, supported by higher imagery demand by new and existing Data & Analytics customers. Within the Data & Analytics business, the company is transitioning toward a more recurring revenue model, supported by the launch of its Aleph Observer platform. Satellogic Inc. price-consensus-chart | Satellogic Inc. Quote Aleph Observer will aid customers in continuously monitoring hundreds of sites with rapid image delivery and built-in analytics. Management noted that the company was well-positioned in the Persistent Global Intelligence category due to its differentiated unit economics and vertically integrated model. With satellites costing nearly $1.3 million and delivering significantly higher imagery throughput than peers, Satellogic can offer persistent monitoring at a better price point than its competitors. In May, the company won a contract of more than $18 million with an international defense client for high-frequency Earth observation imagery.However, SATL faces meaningful challenges as profitability and cash flow remain work in progress. On the last call, management noted that it expects cash flow to be “touch and go” over the next two to three quarters as it continues investing in scaling the business. Also, the uneven nature of revenues, particularly from Space Systems deals, is a concern. On June 30, 2026, Satellogic tied up with SpaceKnow to provide planetary-scale monitoring solutions to government and commercial customers. On June 23, 2026, Satellogic partnered with SynMax to develop AI-driven geospatial intelligence products for intelligence and defense customers. Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season. Arista Networks ANET currently has an Earnings ESP of +3.08% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. ANET is scheduled to report quarterly earnings on Aug. 4. The Zacks Consensus Estimate for ANET’s to-be-reported quarter’s earnings and revenues is pegged at 89 cents per share and $2.83 billion, respectively. Shares of ANET have gained 45.5% in the past year.Caterpillar CAT presently has an Earnings ESP of +4.96% and a Zacks Rank #3. CAT is scheduled to report quarterly numbers on Aug. 4. The Zacks Consensus Estimate for Caterpillar’s to-be-reported quarter’s earnings and revenues is pegged at $6.25 per share and $19.31 billion, respectively. Shares of CAT have risen 89% in the past year. Advanced Micro Devices, Inc. AMD has an Earnings ESP of +1.56% and a Zacks Rank #2 at present. AMD is scheduled to report quarterly figures on Aug. 4. The Zacks Consensus Estimate for AMD’s to-be-reported quarter’s earnings and revenues is pegged at $1.61 per share and $11.32 billion, respectively. Shares of AMD have skyrocketed 185.3% in the past year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Satellogic Inc. (SATL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Iridium Communications (IRDM) came out with quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.2 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -26.92%. A quarter ago, it was expected that this satellite phone company would post earnings of $0.27 per share when it actually produced earnings of $0.2, delivering a surprise of -25.93%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Iridium, which belongs to the Zacks Satellite and Communication industry, posted revenues of $225.24 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.82%. This compares to year-ago revenues of $216.91 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Iridium shares have added about 171.8% since the beginning of the year versus the S&P 500's gain of 9.7%. While Iridium has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Iridium was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.30 on $228.78 million in revenues for the coming quarter and $1.02 on $895.01 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Satellite and Communication is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Satellogic Inc. (SATL), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Satellogic Inc.'s revenues are expected to be $9.33 million, up 110.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Iridium Communications Inc (IRDM) : Free Stock Analysis Report Satellogic Inc. (SATL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Some significant, market-influencing companies are reporting next week — led by Nvidia and also including Cava Group, Home Depot, Target and Walmart. Companies that could report earnings surprises show a particular trading pattern of implied volatility heading into the earnings. For example, the CAVA CAVA two-year chart below shows two graphs — the stock price is on the bottom and implied volatility is on the top. Implied volatility increases into a spike and then plunges, creating a sawtooth pattern. My wife and I retired with 22 times our income. Why don’t more people do what we did? George Soros’s fund buys Berkshire Hathaway stock — now that Buffett is gone These implied-volatility increases occur as the earnings date approaches; then implied volatility plunges after the earnings are announced. It is actually something of an optical illusion — for the options are not getting more expensive in terms of price as the earnings date approaches, but are remaining the same. That is, the options market prices the straddle prior to the earnings, and more or less keeps it at that price until the earnings are announced. An option that doesn’t lose value to time decay (which these don’t over the couple of weeks heading into the earnings) has the appearance of increasing implied volatility. So, every week when we publish the list of potential postearnings moves, they are stocks with this sawtooth pattern surrounding past earnings dates. The table below highlights stocks to watch next week before earnings. This list normally is comprised of stocks whose options have higher implied volatility. That is, the options market is expecting a potentially volatile move after the earnings news. Our approach is to attempt to buy the shortest-term straddle possible (generally the one expiring on the Friday after the earnings reporting date) and to exit at the close of the first full day of trading after the earnings have been reported. For the stocks in this table, that would mean buying the straddles expiring on May 22. Specifically, the columns below (from left to right) are: Date: The earnings reporting date. Time: Whether the earnings are to be reported before the market opens (“AM”) or after the close (“PM”). Symbol: The stock’s ticker symbol. Needed: The most we would pay for that near-term straddle, with the price of the straddle expressed as a percentage of the underlying stock price. In reality, this is the percentage move that is smaller than six of the past 10 postearnings moves in this stock. OptVol: The 20-day average of total options volume on this stock. Low numbers here indicate a potentially illiquid situation. Currently, none of the at-the-money straddles on the stocks in the above table are trading for less that the “count” percentage. But they should be checked just before the earnings are announced, for that would be the time to buy them if they do satisfy the “count” requirement. NVDA straddles are notoriously overpriced heading into earnings in recent quarters, although last quarter produced a 5% move after the earnings announcement. Satellogic SATL has had a couple of sharp moves higher this year, and a third may be starting. The stock went public in early 2022 and traded at a price of $10 for a brief while. Then it went into an extended decline until this year. Now it is trading at the highest levels since early 2022. Stock volume patterns are excellent and so are options volume patterns. Both are in what we call strong momentum volume moves. That fact, coupled with the stock-price breakout to new relative highs, makes this an attractive speculation. Buy 4 SATL (June 18) 8 calls in line with the market. Stop out on a close below $6.50. The S&P 500 SPX continues to make new highs, but the advance is narrowing considerably as both breadth and new highs on the NYSE are beginning to lag. After an advance of this strength and speed, support levels are minimal. There is tentative support at 7,340 and at 7,275 (where a gap would be closed on the SPX chart). Below there, 7,050 to 7,175 is another support area, and then there is major support at 7,000. SPX continues to trade above its +3σ “modified Bollinger band” (mBB) for the most part. A “classic” mBB sell signal will occur when SPX finally closes below its +3σ band; that would occur today on a close below 7,387. The bands are rising rapidly now, along with SPX and its 20-day moving average. SPX first closed above its +4σ band back on April 14. In the month that has followed, SPX has stayed above that band, for the most part. That is an amazing streak and is quite rare. But even if we get a classic sell signal (which we don’t trade), there is no guarantee that the actionable MVB sell signal will follow. While breadth and new highs might not be keeping pace with this rally, call buying certainly is. Equity-only put-call ratios continue to plummet, thus remaining on buy signals for the stock market. The weighted ratio is at its lowest levels since November 2021, but that only means it’s overbought. There won’t be sell signals from these ratios until they roll over and begin to trend higher. New lows outnumbered new highs again on the NYSE for the second day in a row. While new lows have surpassed new highs by only a few issues, it is enough to stop out the previous buy signal from April 9. This indicator is now in a neutral status for the moment. Yesterday was an unusual day, in that both new highs and new lows on the NYSE numbered more than 100. VIX VIX has not fallen recently, while SPX has risen. This indicates that traders are still a bit wary of this market and have likely been buying SPX puts to hedge long positions. VIX continues to hover in the 17 to 18 range, which is also near both its 20- and 200-day moving averages (circled area on the accompanying VIX chart). Currently, there is no trend of VIX signal in place. The construct of volatility derivatives remains quite bullish in its outlook for stocks, though, since the term structures slope upwards and the VIX futures are trading at a premium to VIX. The fact that SPX is making new all-time highs is bullish, but the first confirmed sell signal has now emerged. We will add positions as our indicators dictate. Continue to roll deeply in-the-money calls upward. As noted in the commentary above, both breadth oscillators are now on sell signals once again. Therefore we are going to a bearish SPY SPY spread to our “portfolio.” Buy 1 SPY (June 18) at-the-money put and sell 1 SPY (June 18) put with a striking price 40 points lower. We will hold this spread as long as either of the two breadth oscillators remains on a sell signal. We are using a standard rolling procedure for our SPY spreads: In any vertical bull or bear spread, if the underlying hits the short strike, then roll the entire spread. That would be roll up in the case of a call bull spread or roll down in the case of a bear put spread. Stay in the same expiration and keep the distance between the strikes the same unless otherwise instructed. Also, for outright long options, roll if they become 8 points in-the-money. Long 1 expiring TSEM (May 15) 220 call and short 1 TSEM (May 15) 235 call: The semiconductor sector is exploding, and TSEM TSEM was up 50 points just today. The position has been rolled up several times. Now, roll to this spread: Buy 1 TSEM (June 5) 270 call and sell 1 TSEM (June 5) 295 call. Going forward, roll up — 25 points on each side — if TSEM trades at 235 or higher. Long 1 BKR (July 17) 65 call and long 1 BKR (July 17) 60 put: Roll the BKR BKR call up at 75 and roll the put down at 50. Long 2 expiring ARKK (May 15) 78 calls: Roll to the ARKK (June 18) 78 calls. The trailing closing stop remains at $76 for these ARKK ARKK calls. Long 1 SFL (Aug. 21) 10 put and 13 call: The calls were rolled up when SFL SFL traded at $13 on May 13. Sell the puts now and begin to use a trailing closing stop at $11.80 for the calls. Long 1 SPY (June 18) 730 call and short 1 SPY (June 18) 755 call: This is based on the “new highs versus new lows” buy signal. New lows outnumbered new highs on the NYSE for the last two days, so close out this position now. Long 1 SPY (Jun 18) 730 call and short 1 SPY (Jun 18) 755 call: This is based on the equity-only put-call-ratio buy signals. They will remain in place until the ratios bottom out and begin to trend higher. Long 2 expiring MHK (May 15) 105 calls: Roll to the MHK (June 18) 105 calls. We will hold these calls as long as the weighted put-call ratio of MHK MHK remains on a buy signal. Long 3 CCL (June 18) 27 calls: Sell these CCL CCL calls now, since the put-call ratio has rolled over to a sell signal. Long 3 expiring BWA (May 15) 55 calls: Roll to the BWA BWA (June 18) 67.5 calls. We will continue to hold as long as the put-call ratio is on a buy signal. Long 1 BNS (Sep. 18) 75 straddle: Roll the calls up to the 85 strike if BNS BNS trades at 85. Similarly, roll the puts down to the 65 strike if BNS trades at $65. Long 2 USO (June 18) 100 puts and short 2 USO (June 18) 90 puts: Continue to hold this USO USO position without a stop for now. Send questions to: [email protected] Lawrence G. McMillan is president of McMillan Analysis, a registered investment and commodity trading advisor. McMillan may hold positions in securities recommended in this report, both personally and in client accounts. He is an experienced trader and money manager and is the author of “Options as a Strategic Investment.” ©McMillan Analysis Corporation is registered with the SEC as an investment advisor and with the CFTC as a commodity trading advisor. The information in this newsletter has been carefully compiled from sources believed to be reliable, but accuracy and completeness are not guaranteed. The officers or directors of McMillan Analysis Corporation, or accounts managed by such persons may have positions in the securities recommended in the advisory. The bond market is already hiking rates as Kevin Warsh takes over as Fed’s new chair