SATL

Morning, welcome to the Satellogic First Quarter 2026 financial results conference call. All lines have been placed on listen-only mode, and the floor will be open for your questions following the presentation. During today's call, we may make statements relating to our goals and objectives for future operations, financial and business trends, business prospects, future financial metrics, statements regarding customer contracts and pipelines, our ability to generate revenue, and management's expectations for future performance that constitute forward-looking statements under federal securities laws. Any such forward-looking statements reflect management expectations based upon currently available information and are not guarantees of future performance and involve certain risks and uncertainties that are more fully described in our SEC filings, including the Risk Factors section of Satellogic's quarterly report on Form 10-Q, annual report on Form 10-K for the fiscal year ended December thirty-first, 2025, and our filings with the SEC..

Our actual results, performance or achievements may differ materially from those expressed in or implied by such forward-looking statements. We undertake no obligations to update or revise any forward-looking statements to reflect events or developments after the date of this call. On this call, we will also discuss financial measures not determined in accordance with the US GAAP, including EBITDA, adjusted EBITDA, and free cash flow. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are presented in the earnings materials posted on our website today. Our press release detailing these results was issued this morning and is available in the Investor Relations section of our company's website at satellogic.com. Hosting today's call will be Satellogic's Founder and Chief Executive Officer, Emiliano Kargieman, Chief Financial Officer Rick Dunn, and Vice Admiral Frank Whitworth, U.S. Navy retired. With that, I will turn the call over to Mr. Kargieman.

Thank you, operator, good morning, everyone. Welcome to Satellogic's first quarter 2026 earnings conference call. Joining me on today's call are Rick Dunn, our Chief Financial Officer, and a special guest, Vice Admiral Frank V. Whitworth III, U.S. Navy retired, who recently joined Satellogic as a strategic advisor. We're pleased to have him with us today. I'll begin with a brief company overview and the key themes of the quarter before introducing Vice Admiral Whitworth, who will share his remarks on his role and our defense and intelligence engagement. Rick will walk you through our Q1 2026 financial results in detail before I cover our commercial update and recent wins. I will walk through our 2026 product roadmap, including our Aleph Observer platform and Merlin constellation, and close with key takeaways before we open the line for questions. With that, let's begin.

The first quarter of 2026 marked a clear inflection point for Satellogic. We grew revenue 80%, improved our adjusted EBITDA loss by 32%, generated positive net cash from operating activities for the first time in our history, and exited the quarter with $121.9 million in cash. Just as importantly, the commercial momentum we built exiting 2025 is growing across sovereign defense, recurring intelligence subscriptions, and U.S. government engagement. Based on our current cost base, backlog, growing recurring revenue and current pipeline, we believe 2026 can be a year of substantial progress towards sustained profitability, and we expect Merlin to be an important driver of free cash flow as it enters service. This was one of the strongest starts to a year in our company's history, and our most ambitious product roadmap to date is now executing on schedule.

There are 5 things I want investors to take away from the quarter. First, on our unique sovereign and defense solutions, our non-ITAR design, vertical integration, and free trade zone manufacturing in Montevideo allow us to deliver disruptively priced sovereign capabilities to allied governments around the world with rapid technology transfer and in-country assembly, integration, and test. In the quarter, we deepened our U.S. defense engagement through the expansion of our partnership with IDT Corporation and the U.S. Office of Naval Research for phases 2 and 3 of the Slingshot program, advancing in-orbit demonstration of our rapid tasking and high-resolution capabilities in support of U.S. Navy mission requirements. Just last week, we announced a $12 million agreement with a sovereign defense customer to deliver the commission in-orbit NewSat from our Aleph-1 constellation, the second sovereign in-orbit transaction in 2 quarters, and I'll come back to why that matters.

Second, we have significant customer traction. We continue to diversify our customer base internationally, with Asia Pacific revenue growing more than eightfold year-over-year to $3 million in Q1 2026. The growth was led by significant contributions from customers in Australia and Malaysia and reflects the global demand we're seeing for sovereign and high-frequency monitoring capabilities. Third, we have unmatched capacity and scale. As of March 30th, we continue to operate one of the largest high-resolution constellations in the world. Our capacity advantage is significant. Based not only on the number of satellites, but also on our patent-protected camera design that enables us to capture approximately 10 times more imagery per satellite than our peers at an all-in cost per satellite of approximately $1.3 million, a fraction of the industry standard.

That cost and capacity advantage is what allows us to realize the unit economics to deliver persistent daily monitoring at scale. The capacity of our constellation has enabled us to sell in-orbit satellites to Space Systems customers without impacting our ability to meet existing demand and expected future growth in our data and analytics business. Fourth, revenue growth with operating leverage in action. Revenue grew 80% year-over-year to $6.1 million, while our adjusted EBITDA loss improved 32% to $4.2 million. For the first time in our history, we generated positive net cash from operating activities in a quarter. The recurring revenue shift we're beginning to see is being driven in part by Aleph Observer, our persistent monitoring product launched in February. That is the operating leverage of our vertically integrated model becoming visible.

Combined with $121.9 million of cash on hand, it materially strengthens our path to sustain profitability. Fifth, a strengthened leadership team. Our board and management team bring deep public company finance, defense, and policy experience. Over the last two quarters, we have built up our sales leadership with the incorporation of Jeff Kerridge and a seasoned team of sales executives. Today, I'm pleased to introduce a new addition who we believe will be meaningful to accelerate our trajectory in defense and intelligence. In late March, we welcomed Vice Admiral Frank D. Whitworth III, U.S. Navy Retired, as a strategic advisor. Vice Admiral Whitworth most recently served as the eighth director of the National Geospatial-Intelligence Agency, the NGA, where he led the delivery of geospatial intelligence supporting U.S. national security operations worldwide.

His decades of experience operationalizing geospatial intelligence at the highest levels of the U.S. defense and intelligence communities position him uniquely to advise our team as we deepen our engagement with that customer base. It's an honor to have him with us today. Vice Admiral, the floor is yours.

Thank you, Emiliano. Good morning, everyone. It's a privilege to be with you today. Let me start with a few words on why I joined Satellogic. Most recently, I had the honor of serving as the 8th director of the National Geospatial-Intelligence Agency, or NGA for short, from June 2022 until my retirement just last December. In that role, I was responsible for the delivery of geospatial intelligence support of U.S. national security operations worldwide. 1 of the priorities during my tenure was the maturation of NGA Maven, the Department of Defense's primary initiative for operationalizing artificial intelligence and machine learning. We transitioned that program from an experimental framework into an operational capability that meaningfully increased the speed and scale of intelligence analysis integrated with mission command across the department. That experience reflected my view of where geospatial intelligence needs to go.

What attracts me to Satellogic is that this company is purpose-built to address the same imperative. The combination of scale, frequency, and resolution that the Satellogic constellation is designed to deliver, coupled with low latency analytics and near real-time tipping and queuing and alerts, this is precisely what we need to enable the shift from periodic observation to continuous awareness. In my role as strategic advisor, and always adherent to my ethics restrictions against communicating with NGA and the Navy, I have been and will continue to be working with the team across three areas: strategic engagement with global defense and intelligence customers, the development of the company's product and technology roadmap, including the Merlin constellation Emiliano will discuss shortly, and the integration of high-frequency Earth observation into modern intelligence architectures. I am impressed by what this team has built.

The U.S. defense and intelligence communities are actively rethinking how they source persistent geospatial intelligence, and Satellogic's combination of sovereign-grade capability with commercial economics is uniquely matched to that demand. I look forward to helping the team serve that mission and to translate that demand into long-term programs of record. With that, I'll turn it over to Rick to walk you through the financial results. Rick.

Thank you, Admiral, good morning, everyone. Our first quarter results reflect the commercial momentum and financial discipline we built exiting 2025. They mark several important inflection points in our business. The headlines are: revenue up 80%, adjusted EBITDA loss improved 32%, the first quarter of positive net cash from operating activities in our history, and $121.9 million of cash on the balance sheet, our strongest position to date. Let me walk you through each. Revenue. Total revenue for the quarter was $6.1 million, up 80% year-over-year from $3.4 million in Q1 2025. The increase was driven primarily by a $1.6 million increase in imagery ordered by new and existing data and analytics customers.

By business line, our data and analytics line of business, which includes our constellation as a service offering, generated $4.6 million of revenue, up $3 million in the prior year, compared to the prior year period. Space Systems contributed $1.5 million of revenue. Geographically, the quarter reflected a meaningful diversification of our customer mix. Asia-Pacific generated $3 million in revenue, up more than 8-fold from $0.4 million in the prior period, with Australia and Malaysia as the primary contributors. Europe contributed $1.1 million, up from half a million. Americas contributed $2 million, primarily reflecting timing rather than any change in customer demand. Our U.S. pipeline continues to be very strong, and we look forward to executing on that pipeline in the remainder of the year. South America contributed $0.1 million.

Taken together, this geographic diversification is an important indicator of the increasingly global demand for our services and of the durability of our international customer base. Total costs and expenses for the quarter declined 3% year-over-year to $12.5 million. Within that, cost of revenues, which is exclusive of depreciation, was $1.5 million, up 17% on higher ground station costs that scale with our growing operations. Engineering expense was $3.1 million, up 24%, reflecting investment in software, professional services, and stock-based comp tied to the broader employee population.

SG&A expense was approximately flat at $6.5 million, with an increase in salaries and benefits associated with workforce expansion in anticipation of 2026 growth, offset by a $0.8 million decrease in legal and professional fees that were elevated in Q1 of last year due to our U.S. domestication. Depreciation expense decreased 48% to $1.4 million, reflecting a reduction in the number of satellites with remaining depreciable useful lives, although we continue to utilize these fully depreciated assets so long as they're capable of capturing commercially viable imagery. The result is an operating loss of $6.4 million for the quarter, an improvement of $3.2 million, or 33% compared to the prior period. Below the operating line, we recorded a $113 million change in fair value of financial instruments.

I wanna be unambiguous about what this is. It is a non-cash, non-op-non-operational charge, and it reflects the increase in our Class A common stock during the quarter, driven by the standard remeasurement of our secured convertible notes, warrants, and earn-out liabilities. A higher share price drives a larger accounting charge against earnings and net income. It has no bearing on the cash generation of the business. Net loss for the quarter, including this $113 million non-cash expense, was $118.3 million. This is not indicative of underlying operating performance, and we report adjusted EBITDA to give investors a clearer view of the operating business. Adjusted EBITDA and operating cash flow. On a non-GAAP basis, adjusted EBITDA loss for the quarter was $4.2 million, an improvement of $2 million or 32% compared to the prior period.

This is a function of both top-line growth and continued expense discipline, and it underscores the operating leverage inherent in our vertically integrated model as revenue scales. Just as importantly, we generated positive net cash from operating activities of $0.2 million in the quarter, an improvement of $4.9 million from the $4.7 million of cash used in operating activities in Q1 2025. This is the first time in Satellogic's public history that we have generated positive operating cash flow in a quarter, and it is a tangible early indicator of the financial trajectory I'll come back to in a moment. Balance sheet. We ended the quarter with $121.9 million in cash and cash equivalents, up from $94.4 million at the end of the year 2025.

The increase reflects the $35 million registered direct offering we completed at $4.73 per share in late January, partially offset by capital expenditures of $5.6 million to support the construction of our Merlin constellation. Backlog and remaining performance obligations. Our non-cancellable remaining performance obligations stood at $64.8 million as of March 31st, with $29.2 million expected to be recognized within 1 year, $7.9 million in years 1-2, $7.5 million in years 2-3, and $20.2 million thereafter. Capital structure update. Subsequent to quarter end in early April, the holder of our secured convertible notes initiated a partial conversion of approximately $6 million of principal into 5 million shares of common stock, reducing outstanding principal to $24 million and further simplifying our capital structure.

Our liquidity position is strong, extends our operating runway, de-risks our Merlin development timeline, and provides the flexibility to invest in the growth initiatives Emiliano will discuss in a moment. Looking forward, we are seeing the operating leverage inherent in our vertically integrated model take hold. With our current cost base, growing recurring revenue from Aleph Observer and a strengthening pipeline of multimillion-dollar opportunities across defense, sovereign, and commercial customers, we expect 2026 to be a meaningful step forward on our path to sustained profitability. With that, I'll turn it back to Emiliano.

Thank you, Rick. The first quarter delivered a sustained cadence of commercial, operational, and strategic milestones. The through line is that what looked like isolated wins six months ago is now visibly becoming a repeatable commercial engine. Let me walk you through the highlights in three categories. First, on our sovereign defense demand. Demand is real, and it is repeatable. In January, we signed an $80 million agreement with CEiiA, the Center of Engineering and Product Development in Portugal, for the supply and in-orbit delivery of two NewSat Mark V 50-centimeter class satellites. Ownership and operational control are expected to transfer to CEiiA in the second and third quarters of this year. In January, we sold NewSat-34 to Australia, establishing the country's first sovereign sub-meter Earth observation capability.

Just last week, on April 30th, we announced a $12 million agreement with a sovereign defense customer for the in-orbit delivery of a commissioned NewSat satellite from our Aleph-1 constellation, with full transfer of ownership and operations expected in early 2027. I want to underscore why this transaction matters beyond its dollar value. It is the second sovereign in-orbit transaction we have closed in 2 quarters, and it demonstrates a differentiated value proposition in the market. The ability to deliver a fully commissioned flight-proven satellite to a sovereign customer with speed and cost efficiency that traditional procurement programs simply cannot match. Importantly, we are approaching this model selectively. Our priority is to monetize in-orbit assets where the economics are compelling while continuing to manage constellation capacity to support our data and analytics customers and grow their mission requirements.

Moreover, we may have the ability to buy back capacity at attractive prices from certain space systems customers. With our $1.3 million all-in NewSat cost and frequent contracted launch cadence, we believe sales of in-orbit satellites can potentially play a larger role in our space system strategy as we scale the constellation over time. Second, our commercial engine is broadening and shifting to recurring subscription revenue. Beyond the 8-fold expansion of our Asia Pacific revenue Rick already highlighted, the underlying mix of our commercial business is changing in a way that meaningfully improves revenue quality. In January, we signed a 7-figure monitoring agreement with strategic customer, providing daily revisit and high-resolution coverage over a large portfolio of priority sites. Exactly the kind of recurring engagement that compounds over time.

We also extended our countrywide monitoring agreement with the government of Albania, continuing the persistent national Earth intelligence we have been delivering with our NewSat constellation. In February, we launched Aleph Observer, our persistent geospatial intelligence platform, which is now in market. I'll spend more time talking about it in a moment, the commercial impact is already visible. We're converting one-off imagery customers into multi-year subscription customers. Together, the shift from project revenue to platform revenue is what underpins the durability of our growth trajectory. Third, strategic and platform milestones supporting the next leg of growth. On the operational side, on March 30th, we successfully launched NewSat 53 and NewSat 54 on a SpaceX mission from Vandenberg Space Force Base, expanding our in-orbit capacity and flight heritage.

On the capital side, in January, we closed our $35 million registered direct offering at $4.73 per share, materially strengthening the balance sheet and de-risking the Merlin development timeline. On the U.S. defense engagement side, we expanded our Slingshot partnership with IDT Corporation and the U.S. Office of Naval Research into phases 2 and 3. We welcome Vice Admiral Whitworth as strategic advisor. On the commercial leadership side, we have continued to build out our global sales organization with senior defense and intelligence industry veterans, extending the work that began with the appointment of our SVP of Global Sales last year. The commercial muscle of this company today is materially stronger than it was 12 months ago. The takeaway is straightforward.

The breadth and quality of commercial, operational, and strategic activity in the first quarter and in the four weeks since speaks to a commercial engine that has matured. We're no longer a constellation looking for customers. We're a vertically integrated platform serving a growing multi-hundred million dollar pipeline of qualified opportunities across defense, intelligence, sovereign, and commercial markets, with the unit economics to win on price and the capability to deliver immediately. I want to take a moment to ground the conversation in what we believe is an important strategic shift happening in the commercial earth observation today. For two decades, the dominant model of commercial earth observation has been transactional. Customers tasked individual images, visibility was episodic, and tasking capacity constrained by a limited number of satellites built at high cost. The result was reactive, event-driven intelligence and an industry that, frankly, struggled to scale.

Persistent global intelligence is fundamentally a different category. It is continuous and always on. The foundation is a daily planetary baseline. With our constellation today, it already enables the simultaneous monitoring of thousands of sites and moves customers from reactive observation to proactive awareness. With the future launch of our Merlin constellation, the foundation layer becomes ubiquitous, going from thousands to an unlimited number of sites. With persistent global intelligence, the commercial model shifts from per scene transactions to recurring subscription revenue, and it materially improves the predictability and lifetime value of every customer relationship. The reason we believe Satellogic is uniquely positioned to lead the category transformation is rooted in physics and unit economics. For patent-protected, stabilized pushbroom camera design, reaches approximately 10 times more imagery throughput per satellite than our competitors.

Combined, we are $1.3 million all-in satellite costs and the vertical integration that allows us to scale our constellation at a fast pace. That throughput is what enables persistent monitoring at unit economics that no one else in the industry can match. We believe the market is still early in this transition from episodic to persistent global intelligence. The customer demand signals are clear. Aleph Observer is a new product that allows customers to subscribe to persistent monitoring of portfolios of strategic sites with reliable revisit cadence, image delivery within hours, and analytics layered on top. It allows our customers to go from monitoring a handful to hundreds of sites on a daily basis. As of February, it is in the market and commercially available. It was built on 3 pillars. 1. The scale.

Aleph is able to persistently monitor hundreds of sites simultaneously at a frequency and cost structure that no traditional tasking-based service can match. Second, assurance. Aleph has capacity to scale and a reliable cadence over priority regions, meaning customers can plan around the data and not the other way around. Third, built-in analytics. Aleph delivers images roughly within 3 hours of capture, with automated object detection layered in at no additional cost. The analytics enable fast triage and prioritization of intelligence analysts' workflows, a requirement at this scale. The example coverage map you see on the slide illustrates the kind of persistent monitoring footprint Aleph Observer enables. In this case, the regional intelligence picture across Iran. Customer adoption to date includes sovereign government users, defense customers, and commercial monitoring buyers across multiple regions.

This is what we believe is the future direction of the market, we believe Satellogic is the company in the industry best positioned to deliver it today. If Aleph Observer is a product in market today, Merlin is the infrastructure layer that expands that product from high-value targeted monitoring into planetary scale persistent intelligence. Merlin is our AI-first, defense-oriented constellation, purpose-built for daily one-meter global coverage and real-time intelligence. A few things to highlight. First, Merlin is fully funded. Its development is anchored by a $30 million customer contract from a strategic defense and intelligence customer, which means we're not asking shareholders to underwrite this build-out or customers are. Second, Merlin is designed for planetary scale. The constellation, when fully deployed, is intended to remap the entire planet daily at one-meter resolution.

The architecture combines 10 spectral bands aligned with Sentinel-2, AI-first onboard processing, and intersatellite links to enable real-time alerting. This is a step change in what commercial Earth observation can deliver. Third, we're happy to mention Merlin is on track. We have made strong progress against production milestones in Q1, and we remain confident in our October 2026 1st launch window, now roughly 5 months away. With the initial constellation rollout expected to be complete in the 1st half of 2027. I'd like to leave you with 4 takeaways from the quarter. First, our commercial momentum continues to strengthen. We completed 2 sovereign in-orbit transactions in 2 quarters, including CEiiA and the $12 million agreement we announced last week, with no impact to the needs of existing and expected data analytics customers. We also expanded Slingshot phases 2 and 3 with the U.S. Navy.

We're seeing growing demand across both our data and space systems businesses, with customers increasingly moving from pilot programs to our larger operational deployments and longer-term engagements. The business model is beginning to demonstrate meaningful operating leverage. Revenue grew 80% or adjusted, EBITDA loss improved 32%. We generated positive net cash from operating activities for the first time in our history. We exited the quarter with $121.9 million in cash. We believe these results reflect the benefits of a vertically integrated architecture and increasing scale. Aleph Observer establishes Satellogic's position in persistent geospatial intelligence. Customers are increasingly moving from buying individual images to subscribing to continuous monitoring and actionable awareness over strategic areas of interest. We believe this transition represents a major evolution in the Earth observation market.

Earth observation is evolving from a data business into an intelligence infrastructure business. Q1 showed meaningful progress in our positioning for that transition. Fourth, the technology roadmap is fully funded and on schedule. Aleph Observer is live and in market. Merlin's first launch is on track for October 2026, and the initial constellation rollout is expected to be complete in the first half of 2027. Our Q1 launches of NewSat 53 and 54 expanded our in-orbit capacity and flight heritage. We're executing on time, on budget, and at scale. Taken together, this highlights signal we're on the right path for our continued growth and constitute the basis for our confidence going forward. I want to take a moment to thank our customers, our partners, our employees, and our shareholders for their continued support. A special thanks to Vice Admiral Whitworth for joining us today.

With that, operator, please open the line for questions.

Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Available for questions today are Emiliano and Rick. One moment while we poll for questions. First question, Michael Latimore with Northland Capital Markets. Please go ahead.

All right, great. Good morning. Congrats on the excellent results here. I guess I first wanted to touch on Aleph Observer. Can you give a little more detail there? Maybe, you know, how many customers have signed up for that? You know, what are sales cycles like? What kind of incremental revenue do you see when a customer does sign up for it?

Sure. Hi, Michael. How are you? Yeah, we're still early commercially on Aleph Observer, right? It was launched in February. We are very encouraged by the engagement we're seeing. Customers are already using the platform operationally across portfolios in their areas of interest that range from dozens of sites for some customers to hundreds of monitored sites for others, right? Depending on the use case. What is especially important for us is that the conversations we're having are increasingly centered around ongoing monitoring workflows rather than, you know, isolated imagery requests. That's kind of the behavioral transition we are looking for.

Our expectation is to sign a number of initial pilots in 2026 for Aleph Observer and as customers factor in this new procurement method for, you know, recurring services into their budget, expand and scale into 2027.

Yeah. Yeah, makes sense. Great. Then maybe just a little more color on the pipeline. You know, how many nations, sovereign nations do you see in the pipeline potentially wanting, you know, space systems deal or the portfolio and, maybe a little breakup between, you know, larger tier 1 countries and smaller ones?

That's a good question. I don't have the breakup numbers here in front of me. You know, anecdotally, what I can share is, the pipeline we're seeing is, you know, is growing very strong in Asia Pacific, in the Middle East, in Europe. Those are the areas where we're seeing most of the progress. Currently, you know, our space systems pipeline sits just under $1 billion on opportunities that we're pursuing, and this is mostly obviously sovereign customers.

Okay. Perfect. Great. Thanks very much. Good luck this year.

Thanks, Michael.

Next question, Andres Sheppard with Cantor Fitzgerald. Please go ahead.

Hey, good morning, everyone. Congratulations on the quarter, thank you so much for taking our questions. Congrats on all the great progress. I wanted to touch on maybe Merlin. Looks like we are reaffirming the timeline for later this year and operational capacity next year. Rick, just curious if you could maybe give us maybe a high-level view on how we should expect those revenues from Merlin to ramp up, how we should think about those, and maybe what will that do to the cost structure. Thank you.

Thanks, Andres. As you guys know, we have a $30 million contract for the Merlin services, and we've collected a decent amount of cash of that upfront, cash from that upfront. In terms of rev rec, that won't begin really until we get to the point where we're fully operational in the first half of 2027. That revenue will start getting recognized annually in chunks as we deliver those services. As far as the pipeline, we're working on a number of opportunities that would also leverage the Merlin constellation, those also would not start to get recognized until we're fully operational in 2027.

Got it. Okay. That's super helpful. I appreciate it. Maybe just a quick follow-up, bit of a housekeeping one. There was a high concentration of revenue from Asia and Asia Pacific this quarter. Just curious if we should see that more as a trend or more as an outlier going forward. Any color there will be helpful. Thank you.

Yeah, sure. Just a follow-up on your last question. That $30 million contract is also a 5-year deal. It mirrors the expected life of the Merlin satellites themselves. With respect to Asia and Asia Pacific this quarter, I think that will continue. You know, it was buoyed by customers in Australia, specifically HEO that we announced publicly, where they purchased an in-orbit satellite earlier this year. Also a customer in Malaysia. We're seeing demand for our products and services, you know, globally increase. I think that this isn't a one-off, and I think you'll see continued growth across all geographic regions going forward.

Very, very, very helpful.

If I can add there.

Thanks again, Makor. Oh.

No, I was just adding something there to Rick. Andres. This is Emiliano. We, you know, we see several, if you want, several structural drivers at work in the defense intelligence procurement. In particular there's a driver around modernization of defense and heightened focus on sovereign Earth observation capabilities that's playing out in Asia Pacific in particular. We've seen many governments in the region looking to reduce dependency on third-party imagery providers and that's obviously driving, you know, part of our pipeline there. Yeah, we expect to see continued growth there, as Rick was saying.

Excellent. Thanks, Emiliano. Thanks, Rick. Congrats again. We'll pass it on.

Next question, Jeff Van Rhee with Craig-Hallum. Please proceed.

Great. I'll add my congrats, guys. A couple from me. Emiliano, on Aleph Observer, you talked about the ability to monitor unmatched costs, unmatched value overall. Can you just expand a bit more on that, how it stacks up versus the competitive landscape, competitive offerings?

Sure. I think the biggest differentiator of Aleph Observer starts, if you want, with the underlying economics and capacity of our constellation itself, right? As we mentioned before, our satellites, you know, at a fully loaded cost or NewSat satellites at a fully loaded cost of around $1.3 million. You know, and with 10 times the data collection capacity those of our peers, you know, mean that basically, you know, the unit economics per site that we're monitoring, and themselves are very differentiated. The other factor is obviously because we're currently operating one of the largest or the largest commercial constellation for high-resolution imaging. You know, the number of sites that we can monitor compared to those of our peers is significantly larger, right?

We don't have any encumbered capacity, you know, by in the areas of the world, the areas of interest of, you know, higher demand, and that also helps, right? That's really, I think, what makes Aleph Observer different from everything else. It's just the number of sites that you can monitor on a daily basis at a cost, you know, that's still affordable. On top of that, we're layering analytics, right? Allowing our customers to use those analytics to triage and to prioritize, you know, the time that human analysts spend on the sites. The reality is, a lot of the industry can generate analytics on top of imagery.

You know, the harder problem is really being able to deliver persistent monitoring at scale with reliable cadence and with economics that support, you know, operational use cases. Our focus really has been on building a system that is capable of monitoring large portfolios of sites continuously and affordably. You know, Aleph Observer you can think of as a software and workflow layer that is built on top of large operational capability, right? That's really the important part.

Yep. Very helpful. Rick, a couple for you. The sovereign defense customer signed in April $12 million. Can you just talk to how that likely lands in terms of revenue and if there's some follow-on opportunity to that in addition to that $12 million?

Sure. you know, with respect to space systems in general, we will be delivering 3 satellites this year to customers and recognizing revenue associated with those. The sovereign defense customer is 1 of those, and that particular 1 should occur. It may straddle second and third quarter, so it's gonna be in that zone. It'll be likely June, July. With respect to the other 2 deliveries we have, those are for our Portuguese customer that we announced in January, and we expect to deliver 1 of those in June timeframe and likely the second late in the fourth quarter.

Mm-hmm. Just the second part of the question there, the opportunity to sell additional imagery down the road or additional follow-on data sales.

Yeah. Sorry, Jeff. I was just remembering that. Yeah.

Sure.

Absolutely. You know, the sovereign defense customer is a large customer. They, we expect to have follow-on opportunities with them with respect to both data and analytics sales as well as space system sales. We're pretty excited about that one.

Maybe on the ONR, on the Slingshot program, one just to clarify, was that in RPOs and does it show up in RPOs? I know it's in, I believe, 3 C-Three stages. Just trying to get a sense of the scope of the opportunity from that program. Maybe, I don't know if that's Emiliano, maybe you or Rick, but just walk through kind of what the opportunity is there.

I can start, and then Emiliano can add some color. You know, it is in the RPOs. It's not a particularly large contract. I think what's more important is what we're doing with IDT and the ONR on that project and how that could translate for other customers going forward. I'll let Emiliano comment on that.

Yeah. I think why we see this program being particularly interesting is because it is allowing us to operationalize for the first time, you know, inter-satellite links for tipping and queuing between different satellites in our fleet. There is, you know, scalability in the program we're doing with ONR that in itself might be interesting. I think what's more interesting is as these capabilities that we are developing along with the ONR, you know, become part of our standard product offering, right? That's, I think, where, you know, where the impact of this program is going to be realized.

Yeah. Helpful. Maybe if I could sneak one last one in. I don't know if Vice Admiral Frank Whitworth is taking questions. This is obviously right in his wheelhouse, but maybe for you, Emiliano. You know, the U.S. government purchasing, NGA purchasing of commercial data looked like it had a lot of momentum a couple years ago. Obviously, you know, CL put up some very big numbers, and then there was a pause. It seems a lot of entities within the U.S. government sort of rethought that commercial imagery discussion. Then there's been a discussion for many years of buying more commercial. Just curious if the conviction's there, A, that we see a ramp in U.S. commercial buys.

B, just to the extent that you're engaged, you know, with the right buyers, how you see the, you know, the sales track in North America, particularly U.S. government going forward.

Yeah, happy to take this one. Yes. I mean, what we're seeing is, you know, the environment currently in the U.S. procurement is just kind of forcing different avenues for procurement and different procurement for a wider set of commercial supply. That obviously includes us. We are seeing a significant opportunity growth for our own engagement with U.S. government in general. Yeah, definitely one of the areas that we expect to contribute future growth.

Great. Great. Thanks so much, guys. Congrats on the progress.

Thanks, Jeff.

Next question, Suji Desilva with Roth Capital Partners. Please go ahead.

Hello, Emiliano and Rick. Congratulations on the progress. I'll add mine as well. On the data analytics revenue and the transition to more recurring visible revenue from, I guess, per image, where are we in that transition, and what's a realistic expectation of how that mix can shift in the next year or two? Just to understand the pace of that transition.

I think we're early in the transition. You know, as you know, you know, in 2025, we did $18 million of revenue. We've got a tremendous amount of momentum both on the data and analytics side as well as space systems for 2026. You're starting to see that as we make announcements on contract wins. You know, in terms of the mix, you know, it's a tough one because the space systems deals tend to be rather large and episodic. You know, when they hit the period in which they hit, they have an outsized impact typically. That, you know, space systems by definition is going to be a little bit lumpy.

I do think that, you know, with the Aleph Observer and Merlin then coming online in 2027, our data and analytics revenue will also grow substantially. We've got, you know, the largest high resolution commercially available in the world, a lot of capacity on it, and, um, you know, a world-class sales team that's out there selling that data right now. We expect that will scale up more linearly going forward.

If I can add there, Suji. Yeah, thanks for the question. In particular, you know, if you're talking about kind of the transition that we're seeing towards persistent intelligence and recurring monitoring. You know, as Rick said, we're still very early in the transition, so most of our revenue today is still not recurring in the traditional SaaS sense, if you want. What we're increasingly seeing is customers that are moving from one-off tasking towards this ongoing monitoring relationship with us. That's the important shift, right? Like, customers are asking us to monitor portfolio of sites continuously over time and rather than purchasing isolated images. That's what our Aleph Observer was designed to do. That's the exact use case that it was designed to fulfill.

While, you know, in the accounting side, accounting profile, if you want, is still evolving, the customer behavior is already changing in that direction. I think that's the leading signal that we're excited about.

No, that's great. That's helpful, Emiliano. A second question maybe for Emiliano. For the product, not the product, but the roadmap really of the satellite capabilities, increasing AI compute on the satellite. Can you talk about that roadmap and what that would look like as it flows forward the next few years in terms of increased opportunity?

You know, co- revenue or products, services, any concepts that would be helpful as we think about the roadmap of the satellite capabilities?

Yeah. No, for sure. Without speculating too much, you know, I think you see us evolving our roadmap in a few different directions in parallel, right? On one side, we are evolving the resolution of our high-resolution satellite fleet, right? We are currently our NewSat are 50 centimeters of resolution. We're moving towards our next generation satellites that will be able to do 35 centimeter resolution imagery, right? Higher resolution is one direction. We also are including real-time inter-satellite links and onboard processing with capabilities, enough capabilities and processing power to run multi-headed AI pipelines on top of all of the data that our satellites are collecting. That's also part of the roadmap. That's another avenue, right? One is increased resolution.

Second one is real-time analytics and real-time alerting and inter-satellite links. The third one is Merlin. Layering in this broad area monitoring global daily remaps at 1 meter of resolution on top of all of this, right? Those 3 things put together speak of a future where, you know, we will be going very closely to what has been our vision since the very early days of the company of having, you know, persistent global or geospatial intelligence and the ability to basically start asking the planet questions. You know, start asking the Earth questions about what's going on and, you know, getting daily signals, getting daily intelligence updated in pretty much real time, right?

We're very excited about the way these 3 different growth areas in our technology and in our the existing roadmap that we're executing, you know, come together to realize this vision of kind of a searchable planet or, if you want a digital twin of the Earth that, you know, everybody can use to make more informed decisions. I think another part that's very interesting from where we are in terms of our roadmap is that all of the big capabilities that we are building into our, into our roadmap are actually being funded by our customers, right? That's also very exciting for us.

Yes. Great. Thank you, Emiliano. I appreciate the color.

Thank you.

Next question, Scott Buck with Titan Partners. Please go ahead.

Hi. Good morning, guys. Thanks for, thanks for taking my questions. Rick, I'm curious, is positive operating cash flow sustainable in Q2 and beyond? Or was the first quarter aided by timing of, you know, certain contract collections that may not repeat?

Yeah, I mean, we were marginally positive on operating cash flow. I think it's going to be a little touch and go for a couple 2 or 3 quarters as revenue ramps up. You know, what aided our cash flow positivity this quarter was really some advanced collections from customers. I think going forward, you know, we're going to be making investments in terms of scaling the business, and that's going to require some working capital. You know, we are still at an adjusted EBITDA loss, as you know. And with, you know, continued growth and scaling, working capital will bounce around a little bit. We'll be drawing down on that as we make investments in inventory and so forth.

Great. That, that's helpful. Then my second one: Given the current level of geopolitical turbulence, are you seeing an acceleration of sales cycles or seeing interest from, you know, maybe new commercial customers?

I can take that one. You know, obviously, I think periods of geopolitical instability do tend to increase awareness of the value of persistent intelligence. We are seeing, you know, conversations accelerating across the board. That said, you know, we believe the broader shift we're seeing in the market is structural, not really event-driven. Governments and enterprises alike increasingly want continuous awareness of infrastructure, supply chains, maritime activity, you know, borders, their strategic assets. This is regardless of any single conflict. You know, while the geopolitical environment can accelerate the procurement cycles here, we do view the demand transition as much broader and longer term.

Great. Well, I appreciate the added color, guys. That's all I have.

Thanks, Scott.

Next question, Chris Quilty with Quilty Analytics. Please go ahead.

Thanks. I had a somewhat technical and business question, I guess, around the sale of the in-orbit NewSat. If I recall, this is the first time I can think of an operational satellite being sold to a customer. I don't count HEO because that's for a different application. Is that first of all, is that true? Do you think that is an expandable business model?

Hi, Chris. We do see this as an expandable business model. This is, depending on how you count, this is the first or the second one, because the satellite that we sold to in Portugal, I think was a few days after the satellite was launched. So that could count as an in-orbit transfer. Yes, you know, we do see this as a possibility that, you know, that might expand in the future as we have this cadence of launch and manufacturing of satellites, already contracted, already in place. We're putting satellites in orbit essentially every quarter. We are seeing obviously increased demand on the customer and for, you know, adding very rapid capabilities.

In the past, you know, going from contract signed to satellite delivery within 4 months as we can or 6 months as we can normally do with our launch cadence was, you know, extremely competitive compared to the years that it takes normally to get a functioning satellite in orbit. Obviously we see customers willing to engage and willing to, you know, pay a premium also for getting capacity delivered quicker. Because we have this capacity in orbit and we can do these transfers without affecting our ability to deliver on our data and services business, right? Yes, I think we can selectively continue to see this model going forward as we continue to grow our constellation, right?

I mean, you have lots of excess capacity now, but, you know, as the revenue per satellite grows, you know, the technical part of the question is, you know, is this an SSO orbit or was it inclined? Because obviously that's kind of a huge difference in the amount of revisit. Would you, maybe for Rick, think about, you know, changing the inclinations or launching capacity to inclinations where you think customers might purchase them?

Yep. It's a good question. In this case, it was a satellite in a orbit. We have built and launched, you know, satellites in many inclination orbits in the past, including one that we did with Tata in India. We have the ability to do that. The satellite design supports that and our operation, concept of operation supports that. I agree with you in the case of customers that want to ramp up their capabilities. You know, in some cases it makes sense to consider mid-inclination launches. If you're only operating a small handful of satellites, you know, 1, 2, 3 satellites, I would argue that mid inclination is probably not a great solution technically because you have, you know, persistent blackouts.

Customers are typically looking at building predictable capabilities that they can count on for intelligence, right? Mid inclinations are not particularly well-positioned for that if you have a small, relatively small constellation. We do have the flexibility and, you know, we do engage with customers if they want that. We see it as complementary to our SSO offering, right?

Gotcha. For Rick, how does this get booked? I guess the other question is, we've seen some transactions like this where, you know, the customer obviously has a much smaller need for the satellite than its total coverage, and you see capacity sellbacks. Are those sort of arrangements, you know, part of this agreement or something you would look to do, of reselling unused capacity?

You know, when we, in terms of how we book space systems deals, you know, it's based upon our performance obligations under each contract. At the moment, each of those contracts continue to be fairly bespoke deals. You know, maybe over time they become more consistent and predictable in terms of the specific performance obligations. The largest value that we're delivering to the customer is the in-orbit satellite. We're also, you know, in many cases transferring some knowledge and some light transfer technology, as well as providing, you know, support from a mission ops perspective. That's not where the value is for the customer. Revenue will, you know, revenue recognition will follow those specific performance obligations.

In terms of, in terms of the possibility of buying back capacity, yeah, that's, it's absolutely a possibility. We're not doing that. We don't have the right to do that currently with any of our existing deals. But that may likely be a possibility going forward. It may be something that we look to negotiate as part of our, you know, discussions with those customers as we enter the contract.

Gotcha. Just to clarify, Rick, I mean, this is a sale of an asset, so does it show up as a one-time gain or are there elements that are continue to be operational in providing support?

The performance obligation associated with the transfer of the satellite is booked when that, you know, that transfer occurs. That's a, that's a one-time, you know, recognition event per satellite. With respect to services like transfer of knowledge, transfer of tech, and mission and ops, that'll be recognized over, you know, the period of time that we're delivering those services.

Great. Thanks, guys.

All right. Thank you.

I would like to turn the floor over to Emiliano for closing remarks.

Thank you, Stacy, and thank you all for joining us. Q1 was a meaningful step on the path we have been describing for the past 2 years. A leaner, better capitalized, commercially active Satellogic now demonstrating the operating leverage of our vertically integrated model. With our existing constellation, Aleph Observer in the market, Merlin on track for October, and the deepening of our defense and intelligence engagement, we are positioned to lead the transformation of commercial earth observation into persistent global intelligence at a planetary scale. To do it on a path to sustained profitability and free cash flow. If we were unable to address any of your questions today, please reach out to our IR team directly at [email protected]. Thank you.

This concludes today's teleconference. You may disconnect your lines at this time, and we thank you for your participation.

Good morning, and welcome to the Satellogic Fourth Quarter and Full Year 2025 Financial Results Conference Call. [Operator Instructions] During today's call, we may make statements that relating to our goals and objectives for future operations, financial and business trends, business prospects, future financial metrics, statements regarding customer contacts and pipeline, our ability to generate revenue and management's expectations for future performance that constitute forward-looking statements under federal securities laws. Any such forward-looking statements reflect management expectations based upon currently available information and are not guarantees of future performance and involve certain risks and uncertainties that more fully describe -- that are more fully described in our SEC filings, including the Risk Factors section of Satellogic's annual report on Form 10-K. Our actual results, performance and our achievements or achievements may differ materially from those expressed in or implied by such forward-looking statements. We undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this call. On this call, we will also discuss financial measures not determined in accordance with U.S. GAAP, including EBITDA, adjusted EBITDA and free cash flow. Reconciliation of these non-GAAP measures to the most directly comparable GAAP measures are presented in the earnings materials posted on our website today. A press release detailing these results was issued this morning and is available in the Investor Relations section of our company's website at satellogic.com. Hosting today's call will be Satellogic's Founder and Chief Executive Officer, Emiliano Kargieman; Chief Financial Officer, Rick Dunn; and Senior Vice President of Sales, Jeff Kerridge. With that, I'll turn the call over to Mr. Kargieman. Please go ahead.

Thank you, operator, and good morning, everyone. I'm Emiliano Kargieman, Founder and CEO of Satellogic. Joining me today are our CFO, Rick Dunn; and our Senior Vice President of Sales, Jeff Kerridge. Before we walk through the results, I want to briefly frame the context in which those results were delivered to ensure a solid understanding of how we got there and the journey that we're on. The work we began in 2024, aggressively restructuring the cost base and rationalizing the organization was difficult but necessary to reposition Satellogic for durable growth. 2025 was the year those structural changes took full effect. Three strategic shifts, in particular, define the new Satellogic. First, we completed our U.S. domicile in March 2025. This strategic shift directly unlocks U.S. government, defense and intelligence contracting, opening a path to approach allied governments internationally. Markets previously closed to us are now active opportunities. Second, we fundamentally restructured our cost base, achieving a 25% year-over-year reduction in total operating expenses. This is a durable structural change that significantly derisks our path to profitability and ensures we operate lean and fast. Third, we matured our product offering, focusing on our core differentiators, affordable, scalable, quality capacity across both the data and analytics and Space Systems business lines. As a result of these decisions, we ended 2025 with strong growth and commercial traction, a healthy backlog and a strong pipeline and with a dramatically strengthened balance sheet, ending the year with $94.4 million. The result is a company that looks meaningfully different than it did 18 months ago, leaner, better capitalized, commercially active and now positioned to scale in the markets that matter most. We are a leader in high-performance, low-cost Earth observation platforms. Delivering unique sovereign solutions and AI-First monitoring for the defense and intelligence, government and commercial markets. We design and manufacture our own satellites and every component in them, giving us a strong competitive edge and very healthy margins for sovereign solutions, and we operate our own constellation and deliver high-resolution imagery and analytics and unparalleled scale and cost, all on a single scalable platform. Our constellation of 19 new satellites in-orbit offers 50-centimeter resolution imagery, intraday revisits over any point on Earth, tasking to delivery in under 3 hours and analytic delivery in under 30 minutes. Our $1.3 million all-in cost per new satellite gives us a structural economic advantage. Our ample capacity means we are ready for scale and can onboard large defense and commercial programs immediately. Looking ahead, I'll come back to our 2026 road map in the final sections of this call with a very exciting update. But the through line from where we've been to where we're going is one of intentional transformation and the 2025 results reflect that. With that context in mind, I'll turn it over to Rick to walk through the financials.

Thank you, Emiliano. Good morning, everyone. I'm pleased to walk through a strong set of financial results today. The headlines are as follows: revenue up 38%, operating expenses down 25%, adjusted EBITDA loss improved 48% and the strongest balance sheet in Satellogic's history. Let me walk you through each. Revenue. For the full year 2025, total revenue was $17.7 million, up 38% year-over-year from $12.9 million in 2024. The growth was driven primarily by a $4.9 million increase in data and analytics revenue as we added new and expanded existing customer relationships. Data & Analytics represented 90% of total revenue at $16 million with Space Systems contributing $1.7 million or 10%. Geographically, North America was our largest market at $12.1 million, followed by Europe at $2.8 million, Asia and Asia Pacific at $2.5 million and South America at $0.3 million. Operating expenses. Total operating expenses for the year were $48.7 million, down 25% from $65.1 million in 2024. Every line of the cost structure improved. Cost of sales, excluding depreciation, declined 3% to $4.9 million. Engineering expenses decreased 28% to $10.4 million, reflecting the workforce reductions completed in 2024 and continued cost discipline. SG&A declined 22% to $25.7 million, driven primarily by a $6.9 million reduction in professional fees, including the expiration of the advisory fee under the Liberty Subscription Agreement and partially offset by increased stock-based compensation. Lastly, depreciation decreased 39% to $7.7 million as some of our longer-lived assets reached the end of their useful life. Operating loss improved 41% year-over-year to $31 million from $52.2 million in 2024. Net loss and adjusted EBITDA. Net loss for the full year 2025 was $4.8 million compared to a net loss of $116.3 million in 2024, an improvement of $111.5 million. The improvement was primarily driven by an $85.9 million favorable year-over-year change in the fair value of financial instruments, combined with the $21.2 million improvement in operating loss. Non-GAAP adjusted EBITDA loss improved 48% to $17.4 million from $33.7 million in 2024. This marks our strongest performance on this metric to date and was driven primarily by the disciplined structural reductions we made to our operating expenses throughout the year. Turning to the fourth quarter. Q4 2025 revenue was $6.2 million, up 94% from $3.2 million in Q4 2024. Q4 adjusted EBITDA loss was $3.1 million, an improvement of $4.4 million compared to Q4 2024. Moving to the balance sheet. We ended the year with $94.4 million in cash and cash equivalents compared to $22.5 million at year-end. That increase reflects the $90 million public offering we completed in October 2025, net of operating cash usage. Net cash used in operating activities was $26.9 million for the year, down 25% from $35.9 million in 2024. Subsequent to year-end in January 2026, we closed a $35 million registered direct offering, further strengthening our liquidity position. We are entering 2026 in the best financial shape in our history. Moreover, our noncancelable remaining purchase obligations, effectively our backlog as of 12/31 stands at $65.1 million with $28.6 million expected to be recognized within 1 year, $6.7 million in years 1 to 2, $8 million in years 2 to 3 and $21.8 million thereafter. This underpins our confidence in continued revenue growth. With that, I'll turn it back to Emiliano.

Thank you, Rick. 2025 was a year of strategic development and significant commercial progress across our 2 business lines, Data & Analytics and Space Systems. And that commercial progress continues at an accelerated pace in 2026. In our Data & Analytics business line, we recently launched Aleph Observer, our flagship persistent global intelligence capability. Rather than episodic tasking, Aleph Observer enables continuous monitoring of hundreds of sites daily for our customers in their areas of interest with predictable, reliable delivery. This is a category-defining product for defense and intelligence organizations that need sustained situational awareness, not just snapshots. We also signed a 7-figure agreement with Suhora in India in Q3, providing daily revisits and high-resolution coverage across a large portfolio of priority sites and extended our countrywide monitoring agreement with the Government of Albania for an additional 11 months in Q1 2026. In our Space Systems business line, one of our more significant wins was an $18 million agreement with CEiiA, the Center for Engineering and Product Development in Portugal, signed in Q4 for the supply and in-orbit delivery of 2 NewSat Mark V satellites. This is Satellogic's first European sovereign EO deployment with ownership and operational control transferring to CEiiA in Q2 and Q3 2026. That speed of delivery is only possible because of our vertically integrated manufacturing and rapid launch cadence. We also advanced our partnership with HEO in Australia, supporting the establishment of Australia's first sovereign sub-meter Earth Observation capability and Space Domain Awareness. Platform and Strategic development. We completed our move to U.S. jurisdiction through Delaware domicile finalized in March 2025, directly unlocking access to U.S. government defense and intelligence contracting. We expanded our HEO agreement to provide exclusive access to our constellation for non-Earth imaging and space domain awareness. And we advanced our AI-first constellation strategy, supported by a $30 million contract from a customer, funding the development of our next-generation satellite capabilities. Before I give you more detail on our 2026 road map, I'd like to bring in our Senior Vice President of Sales, Jeff Kerridge, who joined Satellogic 90 days ago and has spent the time getting close to our customers and our pipeline and can share his perspective from the front lines. Jeff, the floor is yours.

Thanks, Emiliano. Good morning, everyone. I'm Jeff Kerridge, Senior Vice President of Global Sales at Satellogic. For a brief bit of background, I've spent over 35 years in the geospatial defense and intelligence community. That includes over a decade at the CIA, followed by senior leadership roles across the commercial space sector, most notably spending over 27 years help building and scale Maxar's international sales organization. I came into this role 90 days ago, specifically because looking at the landscape, I believe the market opportunity here at Satellogic was both real and vastly underappreciated. And what I've seen in the field over these past 90 days is only validated and reinforced that the market opportunity is real and accelerating. Let me share 3 observations from the field. First, the sovereign and defense appetite is strong and accelerating. Governments worldwide are accelerating their investments in sovereign space capabilities. They demand absolute control, assured access and independence from geopolitical constraints, all at an accessible price point. The Portugal CEiiA transaction is a leading indicator of that trend, not a one-off. Our non-ITAR design, our ability to offer in-country AIT and the speed at which we can deliver operational capability, these are not just differentiators. They are direct answers to what defense and sovereign customers are asking for. As a U.S. company, we are a credible partner for the U.S. government and allied programs in a way we simply were not 18 months ago. Second, our capacity is a genuine competitive weapon. Legacy competitors are capacity constrained, casting queues are long, SLAs are unreliable and customers are very frustrated. Satellogic's capacity on our existing constellation means we can walk into a customer conversation and offer something nobody else can, guaranteed, reliable, affordable, high cadence access starting now. That is solving an immediate pain point for customers who cannot wait 18 months for a competitor to build capacity. Third, the pipeline velocity is real. The deals across Portugal, Albania, Australia, India, Malaysia are not isolated wins. They represent a pattern. Customers are coming to us with the needs they cannot solve elsewhere, and we are converting at a pace I find genuinely exciting. Our backlog of $65.1 million in noncancelable RPOs gives us a strong foundation and the pipeline behind it reflects growing momentum in the markets that matter most to us. I'll hand it back to Emiliano to walk through the 2026 road map.

Thank you, Jeff. That perspective from the front lines is exactly why we brought Jeff into this leadership role, and it validates what we see in the data. Let me now turn to the 2026 road map and what I believe represents the next fundamental shift in how Satellogic creates value. The traditional Earth Observation model is episodic. The customer places a tasking order, waits and receives an image. That model has worked, but it is not what the most sophisticated defense and commercial customers need today. They need persistent, continuous, reliable intelligence. They still need to know what is happening at a specific site when there's a trigger event. But even more, they need to go from being reactive to being proactive by monitoring an ever-expanding portfolio of sites every single day to anticipate events. Aleph Observer is our answer to that need, and it is live today, running on the current NewSat constellation. With Aleph Observer, what it provides is assured capacity, reliable cadence at scale without the traditional tasking bottlenecks. It enables ongoing monitoring of hundreds of customer selected sites every single day. Customers do not have to guess what will be important tomorrow, manage tasking and pray that they can get access to available capacity. They subscribe to persistent intelligence on the sites they care about, and it is delivered. The built-in AI analytics detecting and identifying vessels, aircraft and land equipment allow analysts to triage change and prioritize their analytics workflows, seamlessly allowing teams of analysts to increase the number of sites that they can monitor by orders of magnitude. Aleph Observer represents a fundamental shift for Satellogic. We're moving from selling images to delivering continuous intelligence. This is a shift from reactively tasking imagery of critical sites to delivering and monitoring as a service, and it changes everything about how we price, how we contract and how sticky our customer relationships become. But Aleph Observer is only the beginning because the next question our customers ask is, what if I need to monitor more than 100 sites, more than a few thousand? What if I need to monitor an entire region or the entire planet? That is where our next constellation, Merlin, is designed to deliver. Let me introduce you to a completely new capability that has been 15 years in the making. It's very dear to my heart and will change how we monitor Earth. 15 years ago, when we started Satellogic, we had a very simple idea. What if we could create a living map of the Earth, not a map that updates every few years, not a map that updates every few weeks, but a very detailed map that updates every single day, a living record of human activity on this planet. For a long time, that idea simply wasn't possible. You could either see the planet frequently, but within sufficient detail to drive decision-making or you could see it in high detail, but only in small areas occasionally. The Earth observation industry has historically been forced to make a trade-off between scale and resolution. Today, we are removing that obstacle. Today, we're introducing Merlin. Merlin is a new constellation designed to remap the entire planet every day at 1-meter resolution daily, globally, at a level of detail where you can actually understand human activity. That capability simply does not exist today, and it changes what Earth observation can be used for because once you have a daily baseline of the entire planet at the right resolution, the question is no longer, can I get an image of this place? The question becomes what changed today? That shift is incredibly powerful. Instead of tasking satellites one image at a time, analysts will be able to monitor entire networks of activity simultaneously, every air base, every port, every border crossing, every critical piece of infrastructure every day. Merlin will continuously collect imagery across the planet, process it in-orbit with onboard AI and deliver real-time alerts when meaningful activity is detected through its inter-satellite links. And when something important happens, our high-resolution constellation can immediately focus in to capture greater details at 50 centimeters today with our NewSat Mark Vs and sub-30 centimeters in the future with our NextGen. In other words, Merlin turns Earth observation from imagery collection into continuous awareness. And this capability comes to life inside our monitoring product, Aleph Observer. Aleph Observer customers today have the ability to monitor hundreds or sometimes thousands of sites. With Merlin, that scale moves to millions of locations worldwide, not a few selected points, but an unlimited number, entire systems, entire regions, entire economies. This fundamentally changes how Earth observation is consumed. Instead of buying images seen by scene, our customers subscribe to persistent monitoring of the world that matters to them. That is a transition we believe will define the next generation of this industry, and Merlin is the constellation designed to enable it. This isn't a public relationships [ delivering]. The Merlin constellation is fully funded by our customer contracts and in full production. The first Merlin satellite is expected to launch in October 2026 and the full system expected to be operational in the first half of 2027. We're incredibly excited about what this unlocks because for the first time, we will have the ability to observe the entire Earth as a dynamic system, a living continuously updated map of our planet. And this is the real shift Merlin enables. Earth observation stops being about collecting images. It becomes about continuously understanding what is happening on Earth. Customers can use Aleph Observer today to monitor hundreds to thousands of sites across their areas of interest. With Merlin, persistent monitoring moves to an entirely new scale. Just as importantly, the system removes one of the traditional constraints in Earth observation, capacity. There are no tasking bottlenecks and no competition for satellite availability. We will be able to support an unlimited number of customers monitoring an unlimited number of sites at the same time. We are actively transforming what's possible in Earth observation with this new platform as Satellogic moves from selling imagery to delivering continuous intelligence. Let me close with the 4 takeaways I want investors to carry from today's call. One, we're at a genuine commercial inflection point. Revenue grew 38% in 2025 to $17.7 million, with Q4 revenue growth accelerating 94% year-over-year. Our $65.1 million noncancelable RPO backlog and growing pipeline provide multiyear visibility. Two, the balance sheet has never been stronger. We ended 2025 with $94.4 million in cash, the strongest in our history and closed a $35 million registered direct offering in January 2026. The capital to execute our strategy is in place. Three, our structural cost improvements are durable. Our total operating expenses are down 25% and adjusted EBITDA loss improved 48% to $17.4 million. These are structural changes, not onetime items, and they carry forward. Fourth, the technology road map is fully funded and underway. Aleph Observer is live today. Merlin is fully funded by customer contracts, and we're targeting first launch in October 2026, scaling our persistent monitoring capability from hundreds of sites to the entire planet. This is the disruptive technology upgrade that positions Satellogic for the next generation of defense and commercial Earth observation programs. We look forward to demonstrating what this inflection point means in 2026 and beyond and providing updates on our progress as we move forward. We will now open the call for questions.

[Operator Instructions] And our first question is from the line of Jeff Van Rhee with Craig-Hallum.

Congrats on the call and some just fantastic numbers here. Emiliano, maybe start, you're touching on Merlin. Obviously, it's going to bring some pretty compelling capabilities, global rescan and 1-meter, highly differentiated and pretty rare to see these time lines pull in as I had expected that maybe a bit later than what you're now talking. So fully operational H1 '27. Expand a bit more on that. How many units are we talking? And any other color you can tell us about the capabilities of that? And then correlate that in with my second question, which is you commented at a high level, we're an AI-first platform. That means a lot of different things to a lot of different people. What does that mean to Satellogic?

Yes. No. Thanks, Jeff. I mean thanks for the question. Super good. Thanks for covering the company, too. So great question. Look, we haven't announced Merlin before, but the reality is we have been working on this constellation since April 2025 when we announced that $30 million contract for our AI-first constellation. So even though we have been doing this out of the public eye, we have been working on the design and the initial procurement that we needed, putting the supply chain in place. So the satellites are currently in full production in our facility and the first launch is expected for October this year, followed by the full constellation being completely in-orbit in the first half of next year. The first tranche of this constellation is 8 satellites. That will give us the ability to provide the service fully in 2027. And AI-first for us, what it means is a couple of things, I would say. The first one is these satellites have enough compute capacity and power to process every pixel they collect in real time through a multi-headed AI pipeline directly in-orbit. So we can run the same algorithms we currently run on the ground to do object detection, to do identification, to do classification. We will be able to run this on our Merlin platform directly in-orbit and generate using these algorithms generate a couple of things. First, real-time alerts that we will be able to download from the constellation in real time using inter-satellite links. And most interestingly, real-time retasking. So we'll be able, for example, to detect an event at 1-meter of resolution with a Merlin satellite and in real time, retask a satellite from our higher-resolution fleet to go take a deeper look at what's going on. So when we deliver the imagery to our customers and when we deliver the analysis to our customers, we do so with not only the Merlin baseline, but also with a higher resolution confirmation from one of our other satellites in the fleet. Does that make sense?

Got it. It does very helpful. One other for you, Emiliano, and then a couple for Jeff. But on the sovereign opportunity, I mean, first, congrats on the $18 million Portugal deal. Just spend a second framing what the competitive landscape looks like, why you won there? And maybe more importantly, what you're seeing in the pipeline in terms of those kinds of deals, both sovereign and that scale of deal. I mean, I think there's obviously an emerging -- rapidly emerging awareness in EMEA that they need to get on their game with sovereign abilities and a lot of money coming to bear. So just curious what the pipeline looks like there for sovereign deals and a little bit of color on the Portugal deal would be great.

Yes. No, that's perfect. So there's 3 things why we win in this contract, in general, 3 things that differentiate our satellites in the sovereign space, right? The first one is the quality of the data that comes from our platform, the capabilities of the platform, the fact that these satellites are battle tested that we have been flying the satellites or Mark V satellites now for a number of years before that for Mark IV, we have launched over 55 satellites, accumulated over 150 satellite years of in-orbit experience with this platform. So it's really a stable, strong working platform, right, that is proven. I think that's one thing. The second one is obviously our cost base. I mean we are able to provide these satellites to customers at a really, really interesting and affordable price. And that allows them to think about instead of launching 1 satellite, they can think about launching 3, 6 and get daily revisits or revisits a couple of days in their area of interest with sovereign capabilities, right, for the same price. So that is really also a huge differentiation. And finally, I think what's very interesting, and this has been key, particularly in the case of Portugal, is that we are able to deliver very quickly, right? We went from contract signing in Portugal to delivering the first satellite in operations for them in a matter of days, okay? And the second satellite will be launched a few months after contract signing. So we will deliver 2 satellites within a period of maybe 4 months since contract signing. That is very unique, right? I don't think there's any other company today that is able to do the same thing. And at this particular stage, with the current geopolitical shocks that we're seeing, the speed to delivery and the ability to provide a proven platform at the right cost. I think those 3 characteristics are really what differentiates us. And this is supporting a very strong pipeline, right? I think this -- we have been working on building up this pipeline of opportunities for a long period of time. We have over $1 billion in opportunities in our pipeline today. And we have the ability to deliver and the customers obviously have a very, very immediate need. So we expect to see a lot more coming.

Yes. Very helpful. And Jeff, A couple for you. On the pipeline side, maybe to the extent you can share just what's been accomplished thus far in terms of growth in the late-stage pipeline value? And then secondarily, just I know, obviously, you've announced a broad range of some pretty compelling channel partnerships and relationships. I think you've referenced Vantor and a number of others. If you could just talk there, maybe which ones you'd want to call out as showing particular traction, maybe what kind of direct versus indirect mix you see going forward. So growth in late-stage pipeline value and then just channel [ we ] direct. Are you there, Jeff?

I think we lost Jeff. Jeff, this is EK. So let me see if we can get Jeff to connect in a bit. Do you have any other questions in the meantime.

Sure. Just one more -- yes, one more for you and Rick. Just realizing you're not giving a fiscal '26 guide. But sort of when you mentally look at this business, the growth in the pipeline, I mean, what would be disappointing growth for 2026 in your mind in terms of top line? Just give us some sort of broad swags about the trajectory you think this business is on based on pipeline, pipeline growth. I mean, obviously, RPOs give you very good visibility, at least your 12-month RPOs is more than my 12-month revenue estimates. Obviously, you've got very good visibility, but I'm wondering kind of what the upside is to that, how you think of a floor growth rate maybe for 2026.

Rick, do you want to take that?

Yes, sure. What would be disappointing, I guess, having flat growth relative to 2025. We certainly don't expect that. I think that yourself and the other analysts covering the company have done a lot of work in terms of understanding our business and building good models. And I think the estimates that are out there are in line and perhaps a little conservative relative to our own expectations for 2026.

Our next questions are from the line of Mike Latimore with Northland Capital Markets.

Congrats on the first call here and the results in the Merlin launch. It looks great. I guess first question would be the notion that there's a lot of countries, nations that want to have their own satellites and capacity. I guess, can you quantify that? Like how many countries do you think are actually kind of pursuing their own satellite constellations? And then do they look for an exclusive provider? Or are there a couple of options or chance for a couple of suppliers per country?

Yes. So we see demand growing pretty much everywhere internationally outside of the U.S., I would say, throughout the Middle East, Asia Pacific and Europe for different reasons, we see demand growing in all those places. And it's become clear over the last few years that nobody wants to rely exclusively on commercial constellations and information provided by the U.S. or allied governments for their defense and intelligence need, right? So everybody is trying to build or all of these countries are trying to build, not only operate their own satellites in-orbit and build their own capacity in-orbit, build their own capacity in-orbit, but they also want to build their own capabilities, their own capacity to build new satellites and launch new satellites when needed. We see this as a key trend. This is one that we are particularly well positioned to serve because or not only we have a very unique value proposition in terms of satellite quality, cost and speed to orbit, as I mentioned before, but also because of the fact that our satellites are free of export restrictions that were not -- or technology is not ITAR-controlled. We are able to go to these countries and offer full technology transfer and knowledge transfer programs, including the setup of local assembly and integration facilities to not only -- and localization of supply chains, to not only be able to provide them a few satellites in-orbit today, but also the ability to launch locally more satellites in the future. I think this is a key trend that we're seeing. We're seeing it across the Board. Again, I think Asia, Southeast Asia, Asia Pacific, Middle East, Europe, we're seeing the same trend essentially across the board.

Okay. Great. And then I guess in terms of just the Portugal deal and now the Merlin launch, can you talk a little bit about just the revenue recognition timing on those? When do you expect to sort of recognize the revenue on Portugal? And then what's the pattern on recognizing on the Merlin constellation over time?

Yes. Rick, do you want to take this one?

Yes, sure. So generally speaking, revenue is recognized when the customer obtains control of the promised goods and services. Each contract has specific performance obligations, and we evaluate and allocate the transaction price to those performance obligations in each contract. The specifics -- more of the specifics on rev rec are discussed in our accounting policy footnote in the financials. As it relates to Merlin the revenue -- the main revenue we have on that right now is the $30 million contract we announced this last April. And with the constellation becoming operational in the first half of 2027, as Emiliano mentioned, we expect to begin revenue recognition on that contract at that point.

Okay. Got it. Great. And then on the Aleph Observer, seems like that's something you can go back to sell into your current base and then obviously sell to new customers. I guess, can you talk a little bit about the potential for just usage increase from that? It seems like current customers, if they want to add this persistent monitoring for a couple of hundred sites or whatever, that's almost a way to immediately impact some usage levels. But I guess can you talk a little bit about does that impact usage levels from current customers? Does it increase the deal size for new ones? Just how does that sort of impact the model here?

Yes. No, that's a super good question, Mike. So the first thing to understand is Aleph Observer really allows customers to make use of our existing capacity, right, which is with our 19 satellites we're operating in-orbit and the available capacity that they have and also the ability to collect what they have. It's just very, very significant capacity. That is what gives us the opportunity to go to an area of interest for a customer. It could be Iran or it could be China or it could be Ukraine or Russia somewhere they're interested in monitoring. And we -- in that area, instead of being able to collect a few targets per day as you can do with other constellations, we can go in and supply our customers and provide them with hundreds of sites on a daily basis, right? And that is a huge change in the way they think about how to look at that region. Because they go from reacting to what is hot every particular day and tasking a few satellites to take a picture for confirmation to proactively monitoring a large portfolio of sites of interest to derive primary intelligence that they can use to then prioritize where to focus. So that's a very big change operationally that this is supporting. And in terms of business model, we are going from charging customers image per image per square kilometer that they collect to having a subscription basically that they pay for, where they can monitor 10 sites, 20 sites, 50 sites, 100 sites, obviously, at different price levels, right? But it gives them access to a significantly larger capacity if you measure it on a cost per capture basis, this is extremely competitive, right? The prices that we're offering on a price per capture basis are significantly lower than where -- what these customers are currently paying for tasking imagery. But if you look at these contracts collectively because these are subscriptions, they give us both in terms of our business model, they give us stickiness with the customers. They give us revenue that we can predict into the future because of the subscriptions. And they give us -- essentially, we're moving into a business that can be measured and we will be able to measure in terms of ARR as a traditional subscription service, right? I think it's a big change for us, and it's obviously providing something to customers that they really need right now.

Excellent. I guess one last one for me. On the Merlin constellation AI-first, can you talk about being able to run algorithms on the satellites in addition to the ones on the ground. I guess, can you talk a little bit about are those algorithms -- most of the ones you're envisioning that are sort of currently in place on the ground they move to the constellation satellite itself? Are there new ones you're going to develop? Are there new ones your customers going to develop? I guess how should we think about just the pace of kind of algorithms, AI innovation? And then also, how does that impact kind of the revenue per customer opportunity?

Yes. Taking a step back, we're living in a very unique time right now. I think AI is fundamentally changing how we make decisions all across the Board, right? And in geospatial, we're still at the beginning. I would say a couple of things on the Merlin side. One, yes, we can run our own algorithms in-orbit. We can also run our customers' algorithms in-orbit. We basically can also run foundational models in-orbit to generate embeddings for every pixel that we collect. That then allows us to do things like similarity search, things like segmentation, classification, object identification. So there's a number of things that we can do. You can think of the same visual language models that are being run now on the ground like Google's Earth algorithms or even the visual language models that are being developed by some of the leading AI labs, we will be able to run similar models or the same directly in-orbit, right? So that is extremely powerful because we can now extend seamlessly what you can do with agents, with AI agents looking at the information in the ground, you can extend it seamlessly into what we can do in-orbit. And that gives you the ability to do a couple of things. First, prioritize the data distribution speed. So if you find something that is critical, you can deliver the result very quickly in minutes. instead of having to wait until the satellite goes over the ground station, all of the data for that orbit is downloaded, then it is processed in the ground, then it is classified and then you can generate an alert. That reduces the time from the satellite seeing something happening until the customer getting an alert from hours to minutes, right? And that is extremely significant, right? The other thing that you have to think about is Merlin will be creating this completely new data set of daily remaps of the entire planet at 1-meter of our resolution. And that data set will sit in our service in the ground and foundational models and AI models will be able to go crazy with data and start generating matching patterns and answering questions. So you will be able to interact with this data set in a way that we just can't interact with Earth today. And we have been hinting at this in some of our blog posts over 2025, but now Merlin is going to make this very, very real very soon. So it's very exciting.

Our next questions are from the line of Andres Sheppard with Cantor Fitzgerald.

Congratulations on a very strong quarter. I think a lot of our questions have now been asked, but maybe coming back to Merlin. Just curious what kind of maybe launch cadence might you target after that first launch? And also, maybe help us understand how would you prioritize Merlin versus perhaps increasing the utilization capacity of your existing fleet?

Yes. No, thanks, Andres. So what's very interesting about Merlin is we're not -- we don't need hundreds of satellites to do what we're going to do. So we can do it with a handful of satellites that we can fit and we have already set into our launch schedule. These satellites are designed to live for 5 -- sorry, 5 years in-orbit. So that means we will not have to replenish that constellation to get daily remaps at 1-meter resolution for a number of years, right? Like we might, at some point, decide to increase cadence. We might decide to launch new satellites because new technologies become available that we're interested in putting in-orbit. But all of that is -- would fit into kind of a growth CapEx decision that we would make if we have the customer contracts that we need to support that, right? But absent that, our replenishment of the constellation to provide the service that we will provide with Merlin fits very well into our existing launch schedule. One of the things to keep in mind here also is we are -- because we're a completely vertically integrated company, that means not only we design and integrate our satellites, we also build every component that goes in them. We build our star trackers, we build our reaction wheels, we build our telescopes. So because we're completely vertically integrated, we can translate the same type of unit economics that we have in Mark V satellites to this new constellation. So really, it's an extremely efficient platform to collect data globally at a scale that's never been done before. Very important to keep in mind.

Wonderful. That's super, super helpful. I appreciate all that color. Maybe just my last one. I think we touched on this a little bit, but just given the geopolitical conflict in the Middle East, what impacts maybe positively or negatively might you expect to the business?

Yes. So Look, obviously, as I mentioned before, this geopolitical shocks serve to, I mean, accelerate a lot of the conversations that we have been having with sovereign customers across the Board, right? So even though we're not providing specific guidance about what -- or if there is a spike in demand based on this, it is clear that for a lot of governments around the world, this kind of geopolitical shock puts a lot of pressure into accelerating the build-out of capabilities and accessing all of the available capacity as quickly as possible. And we are in a position where we're trying to support those customers as best as we can and as fast as we can, right?

Our next questions are from the line of Caleb Henry with Quilty Space.

An exciting call. Starting with the mix on commercial and defense, I was wondering if you could talk about what you saw in 2025 and then how you see that changing over the next year or 2.

Thank you, Caleb. Rick, do you want to take this one?

Yes, sure. It's been predominantly defense and intelligence and government for us, although I think with Merlin in particular, there are commercial applications there that are significant. But 2025 was definitely skewed towards D&I and government. I think that space systems going forward will also continue to be skewed in that direction. But data and analytics certainly will expand into the commercial space significantly going forward with the capabilities we're bringing to the market with Merlin.

Okay. And then where do you see the greatest growth opportunity? Is that in selling sovereign systems like the Portugal deal? Or are you more excited about the imagery and intelligence opportunities that come from things like Merlin?

So what's interesting is we actually see these 2 businesses or these 2 business lines are very complementary and part of the same flywheel, if you want. Our customers around the world on the defense and intelligence side, they need a spectrum of solutions. None of these things is sufficient by themselves. So they need to be able to monitor a large number of sites very quickly, right? They need the capacity of Aleph Observer to do that over existing constellation of the future NextGen constellation that we will build. But they also need to have sovereignty. They also need to have the ultimate ability to control their own destiny to control where they on the satellites and to be able to deliver intelligence without relying on third-party suppliers or external suppliers, right? And that's where space systems sovereign deals that we're working on, both on the satellite sales side, but also in technology transfer, knowledge transfer, setting up local AIT facilities and so on come into play, right? But -- so for us, when we work with the customer to offer them a solution, the solution probably includes both data and analytics and space sovereign systems on the defense and intelligence side, right? And both feed from each other. On the commercial side, obviously, we think Merlin is going to be a very big key to start growing our commercial business in the future, right, once it's fully operational. And we expect -- it's no secret that we started this company with the vision of democratizing access to Earth observation data and that remapping the Earth in high resolution and high frequency, we continue to believe is the key to achieve that. So it is no secret that we believe that the largest addressable market for this technology lies in the future in the commercial side. So we're very excited about that. But at the same time, we recognize that the reality of today is 90% of our customers are coming from the defense and intelligence sector. And so we -- even when we build Merlin that we think is a constellation will have a lot of impact on the commercial side, we build it thinking about the requirements of the defense community, right? So Merlin is built initially with defense customers in mind. But we think that is a technology as many other defense technologies in the past that will have like GPS, for example, that will have a tremendous impact on the commercial side, even though its initial purpose is built for military use.

Right. Okay. Quick 2 more questions. One is technical. On the cross links, are those RF or are those optical? And is that also a component that you're building in-house? Because I understand that's a fairly challenging one.

We're currently using RF inter-satellite links. And it's a combination of some things built in-house and some things that we're currently procuring from some suppliers. But over time, we expect 100% would be built in-house.

Okay. And then lastly, what kind of U.S. government opportunities are you seeing in the year since redomiciling to Delaware?

Yes, that's a good question. So look, there's obviously a lot of opportunities in the -- on the U.S. side, right? We -- since we re-domiciled, we have been able to start going after some of those opportunities, most notably through partners, right? You know we have historically a very good partnership with Palantir that has been a great advocate for data in front of the U.S. government. And most recently, since the last year, initially with Maxar now Vantor, where they are, again, actively using our data to serve the defense customers in the U.S., in particular, we're working with them on the Luno program for the NGA, which is a super interesting program, very related in a sense to our Aleph Observer offering and kind of a model in which we based our Aleph Observer offering in general. And then we have entered into the CSDA contract with NASA. We're expecting that relationship to continue to grow. And we are very intentionally developing a strategy for some of the golden dumb opportunities, right? We -- that strategy in our case today has mostly comes from working through primes in the U.S. I think we are domiciled in the U.S. or satellites are operating an NOAA license that gives us really a great starting point to have those conversations, but we are still working primarily through primes in the U.S. to access the government business.

At this time, I would now like to turn the call back over to Mr. Kargieman for his closing remarks.

Well, thank you, operator. Thank you all for joining us today. Satellogic is evolving beyond a traditional Earth observation provider towards a more scalable global intelligence and analytics company. And the progress we shared today is the foundation of that transformation. If we were unable to address any of your questions today, please reach out to the IR team directly at [email protected], and have a great day. Thank you.

This will conclude today's conference. You may disconnect your lines at this time. We thank you for your participation.