Total Revenue

+11% (from $55.3M to $61.27M)

Revenue grew by 11% YoY driven by continued expansion in government and commercial sectors, building on Q3 2024 momentum despite past delays and acquisition timing issues. The prior period’s underperformance due to delays improved in Q3 2025 as new customer additions and secured contracts generated higher revenues. " " "

Geographic Breakdown – United States

+8% (from $23.35M to $25.29M)

U.S. revenue increased by 8% YoY as improvement in government contracts and a strategic focus on large customers in key verticals helped mitigate previous variability from short-term government contract renewals. The current period built on foundational growth from Q3 2024 while addressing earlier headwinds in the commercial sector. " "

Geographic Breakdown – Rest of World

+12% (from $32.03M to $35.97M)

Rest of World revenue increased by 12% YoY as expansion in international markets—including Asia Pacific, Latin America, and EMEA—and strong alignment with sustainability use cases offset prior constraints. This improvement contrasts with previous period challenges by leveraging diversified regional demand and enhanced product-market fit. " "

Operating Income

Turned positive to $22.61M (from -$47.8M)

Operating income saw a dramatic turnaround due to significant cost control measures including expense reductions in R&D and COGS, as well as revenue growth through strategic customer acquisitions. The positive results in Q3 2025 build on restructuring and operational efficiency efforts implemented after Q3 2024 when high operating expenses and one-off charges weighed on margins. " " "

Net Income

Recovered to $20.08M (from a loss of $38M)

Net income recovered in Q3 2025 driven by improved revenue and effective cost management, notably lower operating expenses and expense reductions which reversed the losses seen in Q3 2024. The turnaround reflects the cumulative impact of operational improvements and cost savings from prior periods, transforming earlier losses into a profit. " " "

Earnings Per Share (EPS)

Improved to $0.07 (from -$0.14)

EPS improvement resulted from better net income and margin recovery thanks to revenue growth combined with significant expense reductions in R&D and COGS. The Q3 2025 performance contrasts sharply with Q3 2024 negative EPS by leveraging operational efficiencies and streamlined cost structures. " " "

Research & Development Expenses

-24% drop (from $33M to $25.22M)

R&D expenses decreased by 24% YoY due to targeted cost reductions, headcount optimization, and a focus on prioritizing high-impact projects, building on earlier initiatives to streamline operations. This reduction in R&D spending from Q3 2024 helped improve overall margins in Q3 2025 while maintaining essential innovation efforts. " " "

Cost of Goods Sold (COGS)

-19% drop (from $29.4M to $23.75M)

COGS declined by around 19% YoY largely as a result of lower hosting, depreciation, and subcontractor expenses achieved through improved operational efficiencies. The cost reduction contrasts with the higher COGS in Q3 2024, where factors such as accelerated depreciation and higher variable costs affected margins, leading to improved profitability in Q3 2025. " " "

Revenue

Q4 2025

$61 million to $64 million "

$61 million to $63 million "

lowered

Non-GAAP Gross Margin

Q4 2025

59% to 61% "

63% to 65% "

raised

Adjusted EBITDA

Q4 2025

Loss: –$5 million to –$2 million "

Profit: $0 to $2 million "

raised

Capital Expenditures (CapEx)

Q4 2025

$13 million to $16 million "

$8 million to $11 million "

lowered

Government contracts and defense sector engagement

Previously, Q2, Q1, and Q4 discussions highlighted strong growth in defense & intelligence with multi‐figure deals, pilots with the DoD, a NATO contract, and international wins. " " " " " " "

In Q3 2025, contracts and pilot expansions continue with substantial new and expansion bookings in the Defense and Intelligence sector, an 8‐figure expansion with an international customer, and a 7‐figure DoD pilot, underscoring a broader government focus. " " "

Sustained positive momentum with growing international engagement and new large-scale pilots strengthening the sector’s outlook.

AI integration and pipeline acceleration

In prior periods (Q2, Q1, Q4), AI was consistently integrated into core products with multiple 7‐figure pilots, AI-enabled improvements (e.g. NVIDIA processors, AI edge compute), and pipelines structured by converting pilots into larger contracts. " " " " " " "

Q3 2025 emphasized AI as a significant pipeline accelerant with AI-driven maritime domain awareness and DoD pilots, reflecting a more aggressive push to integrate AI into customer solutions, further expanding market demand. " " "

Enhanced focus on AI integration with more visible acceleration in pipeline growth and broader market adoption, building on previous initiatives.

Next-generation satellite technology and launches

Earlier calls (Q2, Q1, Q4) described progress on next‑generation platforms such as Pelican and Tanager – including tech demos, shipments, improvements over SkySat, and plans for rapid deployments – along with a clear roadmap for hyperspectral and high-resolution advancements. " " " " " " "

Q3 2025 updates show further advancement with Tanager 1 delivering data for Carbon Mapper and progress on Pelican 2 shipping for a January launch, signifying continued scaling of new-generation capabilities and customer value enhancement. " "

Steady progress and scaling as next‑generation satellites continue to advance, demonstrating a consistent long‑term commitment to technology improvements and market expansion.

Revenue growth timing and pilot program conversion

Prior earnings (Q2, Q1, Q4) noted uncertainty in revenue timing due to lumpy government contracts and multi‑quarter pilot conversions, with cautious guidance and acknowledgment of pilot conversion challenges. " " " " " " "

Q3 2025 described revenue growth as promising, with strong Q3 bookings offering visibility, though pilot conversion remains iterative and revenue acceleration is expected in fiscal H2 2026, reflecting optimism with measured timing uncertainty. " " "

Continued uncertainty in exact timing, yet overall optimistic sentiment on pilot conversions and long‑term revenue acceleration remains steady.

Commercial sector challenges, particularly in agriculture

Across Q2, Q1 and Q4, agriculture was consistently challenged by macroeconomic headwinds, budget constraints, and evolving business models—with companies like BASF and American Crystal Sugar being mentioned, but also with a fallback on loss-leader practices. " " " " " " " "

Q3 2025 noted continued headwinds in digital agriculture with challenges transitioning accounts, but also highlighted initiatives shifting customers to higher‑value operational contracts, with expectations for improvement in Q4. "

Persistent challenges in agriculture remain, though there is cautious optimism as customers transition towards more valuable, stickier contracts to overcome current headwinds.

International expansion and sustainability initiatives

Earlier calls (Q2, Q1, Q4) detailed robust international revenue growth in regions like Asia Pacific, Latin America, EMEA, plus initiatives such as contracts with the German Space Agency, U.K. EO Data Hub, Kenya Space Agency, and efforts in deforestation and carbon monitoring. " " " " " " " "

Q3 2025 showcased continued strong international growth with double-digit year-over-year revenue increases globally and new sustainability deals such as AI-powered forest carbon monitoring and partnerships like Laconic and Carbon Mapper. " " " "

Strong and positive expansion internationally, bolstered by active sustainability initiatives that enhance both market share and environmental impact.

Operational efficiency, cost management, and headcount reductions

Previous periods (Q2, Q1, Q4) revealed focus on operational alignment and cost management, with Q2 discussing a 17% headcount reduction and Q1 noting improved EBITDA margins through efficiency efforts; Q4 emphasized cost discipline in line with growth targets. " " " " " "

Q3 2025 reported a recent restructuring that improved operational efficiency, reduced sales and marketing expenses, and likely included headcount adjustments to support a new industry-aligned model, all contributing to narrowing adjusted EBITDA loss. " "

Consistent drive to optimize operations and manage costs, with restructuring efforts in Q3 reinforcing a continued focus on improving efficiency and profitability.

Political and administrative shifts impacting contract opportunities

Earlier periods provided limited insights: Q4 2024 mentioned government dysfunction impacting some contracts and Q1/Q2 had little to no detail on this topic. "

In Q3 2025, leadership noted that the nonpartisan nature of national security and disaster response priorities, coupled with an incoming administration that favors efficiency and commercial solutions, positions them well—reflecting a milder tone. "

Shift toward a more positive outlook in Q3 compared to previous skepticism, indicating better alignment with government priorities and less negative sentiment than earlier reported dysfunction.

Capital expenditures and profitability challenges in next-generation investments

Q2, Q1, and Q4 emphasized ongoing heavy investments in Pelican, Tanager, and cloud infrastructure, with consistent commentary on balancing high CapEx with the goal of reaching adjusted EBITDA profitability by Q4, while managing cash burn. " " " " " " " "

Q3 2025 noted lower-than-expected CapEx in the quarter due to timing while continuing investments in next-generation fleets; emphasis remained on carefully balancing growth initiatives with a path to profitability. " " " "

Persistent investment challenges persist, with continued high CapEx but an increasingly careful stewardship of spending to meet profitability targets, reflecting a steady, balanced approach.

Regulatory and policy-driven opportunities with limited near-term impact

Not mentioned in any of the previous periods.

Not mentioned in the Q3 2025 period.

Topic not discussed, indicating it is currently not a focus for the company.