$SATL.

@kaizen_investorMar 19, 2026 · 1:36 PM

$SATL just posted some great Q4 earnings. They are now up 10% in pre-market. Lots to like about these earnings. The main thing that stands out is the revenues. Satellogic reported a 94% YoY revenue increase. The management stated that this was driven by higher imagery orders from new and existing Data & Analytics customers. The CEO also mentioned that customers are moving away from episodic, one-off imagery requests and are signing larger, recurring contracts for continuous, daily monitoring of specific sites. The company is not only scaling up its revenues but also its gross profit margin, this is often a sign of high pricing power. The gross profit margin is almost 80% for Q4. It also shows that Satellogic can scale without adding costs. The balance sheet looks great for $SATL. This is mainly due to a completed $84.9m public offering in October. They also raised $35m in a direct offering in January 2026. They need this money though, the free cash flow is still deeply negative. They burned $34m in free cash flow in 2025. Satellogic is doing everything they can to save money. They are saving on Engineering and SG&A costs due to workforce reductions and closing a facility in the Netherlands. The CapEx has risen with 50% from 2024, mainly because they are putting more and more satellites into space. As they don't sell the satellites physically, but the service of the satellites, these are mostly not costs of goods sold but CapEx. They also cut R&D expenses by 30%, I don't find any details on why. But I assume they had some R&D in the plant in the Netherlands, and they did not replace them. So, at the moment things are looking good for Satellogic. They have a backlog of $65 million, and they forecast that $28 million will be recognized as revenue in 2026. It looks like they are able to scale from here and should be able to generate a positive EBITDA before the free cash burns out.