This is fantastic reporting on Blacksky. Intelligence Online reports that Blacksky has a $150 million contract with the Israeli government which is in trouble. Apparently Blacksky’s competitors were hesitant to engage on this contract due to financial penalties due to Israel should certain contract elements not be met. Intelligence Online does not offer specifics, but the article implies Blacksky is now at risk of owing Israel financial penalties. Blacksky’s recent Q1 SEC filing was mum on this.
Intelligence Online also reports Israel is Blacksky’s largest foreign revenue source. Should this be true, Blacksky’s 2024 Q1 SEC filing stated Blacksky’s largest non-US government customer contributed 16% of total Q1 revenue.
One may at first wonder why Israel sources satellite imagery from outside, when domestic ISI offers higher resolution imagery. Intelligence Online offers clue that the Israeli contract with Blacksky is for high-temporal imagery. (I.E. high frequency images taken over the same location.) This is something Blacksky can provide more readily than ISI due to greater satellite numbers.
The same article also speculates that Blacksky’s other U.S. Government contracts may be at risk. Stockholders and shorters should stay tune for Q2 reporting presently scheduled for August 8th.
If you hold any earth imagery stock (Blacksky, Planet Labs, Satellogic, iQPS, or even Seraphim which 20% of holdings are in ICEYE), seriously consider signing up to Intelligence Online.