U.S. budget cuts shifts Blacksky’s satellite imaging business to international customers
Because of budget cuts by the Trump administration, the revenues of the satellite imaging company Blacksky fell in the third quarter of 2025, but the company expects to make up that loss with new income from international customers.
The administration’s fiscal 2026 budget proposal includes a one-third reduction to the National Reconnaissance Office’s commercial imagery procurement, a move that has rippled through companies like BlackSky that rely heavily on government intelligence contracts. The cuts specifically affect the Electro-Optical Commercial Layer (EOCL) program — an NRO initiative to buy satellite imagery from commercial providers.
BlackSky reported $19.6 million in third-quarter revenue, missing analyst expectations and down from the previous quarter. Chief Executive Brian O’Toole told analysts the reduction stemmed from adjustments to the company’s EOCL contract “to reflect the potential baseline budget submitted by the administration.”
Sound terrible, eh? Not so fast.
Despite the domestic headwinds, BlackSky is seeing a sharp uptick in overseas business. The company said international sales now account for about half of total revenue, up from 40% a year ago. O’Toole said foreign demand is “outpacing our U.S. government business” and that the company expects international sales to exceed U.S. sales for the first time in 2026.
Blacksky is of course blocked from selling its high resolution reconnaissance imagery to hostile powers, but there are plenty of American allies out there who want this data.
The situation is simple. When American companies are given the freedom to produce, they will create products of value. And the sky won’t fall if the federal government can no longer be their main customer.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon or from any other book seller. If you want an autographed copy the price is $60 for the hardback and $45 for the paperback, plus $8 shipping for each. Go here for purchasing details. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
Because of budget cuts by the Trump administration, the revenues of the satellite imaging company Blacksky fell in the third quarter of 2025, but the company expects to make up that loss with new income from international customers.
The administration’s fiscal 2026 budget proposal includes a one-third reduction to the National Reconnaissance Office’s commercial imagery procurement, a move that has rippled through companies like BlackSky that rely heavily on government intelligence contracts. The cuts specifically affect the Electro-Optical Commercial Layer (EOCL) program — an NRO initiative to buy satellite imagery from commercial providers.
BlackSky reported $19.6 million in third-quarter revenue, missing analyst expectations and down from the previous quarter. Chief Executive Brian O’Toole told analysts the reduction stemmed from adjustments to the company’s EOCL contract “to reflect the potential baseline budget submitted by the administration.”
Sound terrible, eh? Not so fast.
Despite the domestic headwinds, BlackSky is seeing a sharp uptick in overseas business. The company said international sales now account for about half of total revenue, up from 40% a year ago. O’Toole said foreign demand is “outpacing our U.S. government business” and that the company expects international sales to exceed U.S. sales for the first time in 2026.
Blacksky is of course blocked from selling its high resolution reconnaissance imagery to hostile powers, but there are plenty of American allies out there who want this data.
The situation is simple. When American companies are given the freedom to produce, they will create products of value. And the sky won’t fall if the federal government can no longer be their main customer.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon or from any other book seller. If you want an autographed copy the price is $60 for the hardback and $45 for the paperback, plus $8 shipping for each. Go here for purchasing details. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News

