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Debt and Other Financing | 3 Months Ended
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Mar. 31, 2026
Debt Disclosure [Abstract] |
Debt and Other Financing | 11. Debt and Other Financing The carrying value of the Company’s outstanding debt consisted of the following amounts:
| March 31, |  | December 31,
| 2026 |  | 2025
| (in thousands)
Current portion of long-term debt | $ | 9,283 |  |  | $ | 7,971 |
Non-current portion of long-term debt | 199,917 |  |  | 199,917 |
Total long-term debt | 209,200 |  |  | 207,888 |
Unamortized debt issuance costs | (6,541) |  |  | (6,771) |
Outstanding balance | $ | 202,659 |  |  | $ | 201,117 |
| Effective Interest Rate |  | March 31, |  | December 31,
Name of Loan |  | 2026 |  | 2025
|  |  | (in thousands)
Convertible Senior Notes | 8.73% |  | $ | 185,000 |  |  | $ | 185,000 |
Satellite launch vendor financing | 6.32% - 11.62% | 24,200 |  |  | 22,888 |
Total |  |  | $ | 209,200 |  |  | $ | 207,888 |
Convertible Senior Notes The Company issued $185.0 million aggregate principal amount of Convertible Senior Notes in a private offering during July 2025. The Convertible Senior Notes mature on August 1, 2033 unless earlier converted, redeemed or repurchased. The Convertible Senior Notes bear interest at a rate of 8.25% per year, payable semiannually in arrears on February 1 and August 1 of each year, beginning on February 1, 2026. The following table summarizes the interest expense for the Convertible Senior Notes for the three months ended March 31, 2026:
|  |  | Three Months Ended March 31, |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  | 2026 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  | (in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |
Coupon interest |  |  |  |  | $ | 3,816 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of debt issuance costs |  |  |  |  | 222 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total interest expense |  |  |  |  | $ | 4,038 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Holders may convert their Convertible Senior Notes at their option at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Company will pay shares of the Company's Class A common stock, or deliver cash, or a combination of cash and shares of the Company's Class A common stock, at the Company's election. The conversion rate of the notes will initially be 27.1909 shares of BlackSky’s Class A common stock per $1,000 principal amount of Convertible Senior Notes (equivalent to an initial conversion price of approximately $36.78 per share of Class A common stock). The conversion rate is subject to adjustment upon the occurrence of certain events set forth in the indenture governing the terms of the Convertible Senior Notes. The Company may not redeem the Convertible Senior Notes prior to August 4, 2028. The Company may redeem for cash all or any portion of the Convertible Senior Notes, at the Company's option, on or after August 4, 2028 and prior to the 26th scheduled trading day immediately preceding the maturity date, if (1) the last reported sale price of the Company's Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption and (2) certain liquidity conditions are satisfied, at a redemption price equal to 100% of the principal amount of the Convertible Senior Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. In addition, upon the occurrence of a make-whole fundamental change or our issuance of a notice of redemption, the Company will, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert such Convertible Senior Notes in connection with such make-whole fundamental change or notice of redemption. Satellite Launch Vendor Financing The Company entered into a vendor financing agreement to fund the costs of multiple satellite launches providing for $27.0 million, for which payments accrue interest at 12.6% per annum. Then, in November 2025, the Company entered into an additional agreement for multiple satellite launches providing for $30.6 million, for which payments accrue interest at 9.50% per annum. A portion of the vendor financing agreements can be drawn down equally per satellite launch and will be repaid quarterly on a pro-rata basis across a three-year period after each successful launch milestone. Interest begins to accrue on each launch date. The Company may prepay either agreement at any time until the maturity date without premium or penalty. The outstanding debt related to the vendor financing agreements is guaranteed by the Company’s subsidiaries and secured by substantially all of the assets of the Company and its subsidiaries. During the three months ended March 31, 2026, the Company incurred $3.0 million of additional debt and repaid $2.1 million of principal and interest related to the satellite launch vendor financing agreements. Debt Maturities Under the Company’s loan agreements, minimum required maturities are as follows:
For the years ending December 31, | (in thousands)
2026 | $ | 6,892 |
2027 | 9,567 |
2028 | 6,754 |
2029 | 987 |
2030 | — |
Thereafter | 185,000 |
Total outstanding | $ | 209,200 |
Fair Value of Debt The following tables present the fair value hierarchy of the Company’s outstanding long-term debt as of March 31, 2026 and December 31, 2025:
March 31, 2026 |  | Quoted Prices in Active Markets |  | Significant Other Observable Input |  | Significant Other Unobservable Inputs
|  | (Level 1) |  | (Level 2) |  | (Level 3)
|  | (in thousands)
Liabilities |  |  |  |  |  |
Convertible Senior Notes |  | $ | 235,181 |  |  | $ | — |  |  | $ | — |
Satellite launch vendor financing |  | — |  |  | — |  |  | 23,043 |
|  | $ | 235,181 |  |  | $ | — |  |  | $ | 23,043 |
December 31, 2025 |  | Quoted Prices in Active Markets |  | Significant Other Observable Input |  | Significant Other Unobservable Inputs
|  | (Level 1) |  | (Level 2) |  | (Level 3)
|  | (in thousands)
Liabilities |  |  |  |  |  |
Convertible Senior Notes |  | $ | 204,135 |  |  | $ | — |  |  | $ | — |
Satellite launch vendor financing |  | — |  |  | — |  |  | 21,822 |
|  | $ | 204,135 |  |  | $ | — |  |  | $ | 21,822 |
The fair value of the satellite launch vendor financing was estimated using Level 3 inputs, based on interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements and credit rating. Compliance with Debt Covenants As of March 31, 2026, all debt instruments contain customary covenants and events of default. There are no covenants tied to financial metrics and the Company was in compliance with all non-financial covenants as of March 31, 2026.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A Reference 2: http://www.xbrl.org/2003/role/disclosureRef 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