Satellogic Reports First Quarter 2025 Financial Results and Provides Business Update

Revenue of $3.4 million in 1Q 2025

Domestication to U.S. Completed

Awarded $30 Million Contract for AI-First Constellation and Closed $20 Million Registered Direct Offering

NEW YORK, May 13, 2025 (GLOBE NEWSWIRE) -- Satellogic Inc. $(SATL)$, a leader in sub-meter resolution Earth Observation ("EO") data collection, today provided a business update and reported its financial results for the three months ended March 31, 2025.

"The year is off to a great start with our recent announcements in April related to our $30 million low latency, near-daily AI-first constellation contract, our sovereign defense and intelligence imagery sales to Brazil and Singapore, and the closing of a registered direct offering in which we received $20 million in gross proceeds, which further strengthened our liquidity position. These milestones, coupled with the completion of our domestication during the first quarter, positions Satellogic to focus on significant growth opportunities, underscoring the value of our data insights and technology," said Satellogic CEO, Emiliano Kargieman.

Rick Dunn, Chief Financial Officer, added, "In terms of financial results, we ended the quarter with $17.7 million of cash on hand (which does not include the proceeds from the aforementioned offering) and continued to reduce our cash used in operations by $5.4 million, or 53%, compared to the three months ended March 31, 2024. Our revenue also increased modestly by 2% to $3.4 million compared to the prior year period."

"We expect that our revenue for 2025 will largely be dependent on closing opportunities within our Space Systems line of business, which we anticipate will contribute considerable per unit cash flow and strong gross margin. As we look to 2025 and beyond, management continues to focus on near-term growth opportunities and moving the Company forward on a path to profitability," concluded Dunn.

Financial Results for the Three Months Ended March 31, 2025

   -- Revenue for the three months ended March 31, 2025, increased by $0.1 
      million, or 2%, to $3.4 million, as compared to revenue of $3.3 million 
      for the three months ended March 31, 2024. The increase was driven 
      primarily by a $0.4 million increase in imagery ordered by new and 
      existing Asset Monitoring customers, partially offset by a $0.4 million 
      decrease in revenue generated from the Space Systems business line. 
      Revenue for the three months ended March 31, 2025 included $2.6 million 
      attributable to our Asset Monitoring line of business, $0.4 million 
      attributable to our Space Systems line of business, and $0.4 million 
      attributable to our CaaS line of business compared to $2.2 million, $0.7 
      million and $0.4 million, respectively, in the prior period. 
 
   -- Cost of Sales, exclusive of depreciation, decreased $0.1 million, or 5%, 
      to $1.2 million for the three months ended March 31, 2025 from $1.3 
      million for the three months ended March 31, 2024. The decrease was 
      driven primarily by lower Space Systems costs on lower sales volume, 
      partially offset by higher outsourced ground station costs. However, as a 
      percentage of revenue, our cost of sales were 37% for the three months 
      ended March 31, 2025, as compared to 39% for the three months ended March 
      31, 2024. 
 
   -- Selling, General and Administrative expenses decreased $2.9 million, or 
      31%, to $6.5 million during the three months ended March 31, 2025, from 
      $9.4 million for the three months ended March 31, 2024. The decrease was 
      driven primarily by a $0.5 million decrease in professional fees 
      consisting mainly of the accrued advisory fee pursuant to the Liberty 
      Subscription Agreement and professional fees related to the secured 
      convertible notes in 2024, partially offset by professional fees related 
      to our domestication in 2025. The decrease was also partially driven by 
      decreases in salaries, wages, stock-based compensation and other benefits 
      as a result of the Company's workforce reductions in 2024 and other 
      expense reductions resulting from continued cash control measures during 
      2024. 
 
   -- Engineering expenses decreased $1.9 million, or 43%, to $2.5 million for 
      the three months ended March 31, 2025 from $4.4 million for the three 
      months ended March 31, 2024. The decrease was driven primarily by a 
      decrease in salaries, wages, and other benefits and stock-based 
      compensation as a result of the Company's workforce reductions in 2024. 
      The decrease was also partially driven by other expense reductions 
      resulting from continued cash control measures during 2024, including the 
      termination of our high-throughput plant lease in the Netherlands. 
 
   -- Net loss for the three months ended March 31, 2025, increased by $17.4 
      million to $32.6 million, as compared to a net loss of $15.2 million for 
      the three months ended March 31, 2024. The increase was primarily driven 
      by an increase in the change in fair value of financial instruments 
      ($21.6 million) and other (expense) income, net ($1.6 million) offset by 
      increases in revenue and decreases in operating costs. 
 
   -- Non-GAAP Adjusted EBITDA loss for the three months ended March 31, 2025, 
      improved by $3.1 million to $6.1 million, from an Adjusted EBITDA loss of 
      $9.1 million for the three months ended March 31, 2024, primarily due to 
      year-over-year increases in revenue and decreases in operating expenses. 
 
   -- Cash and Cash Equivalents were $17.7 million at March 31, 2025, compared 
      to $22.5 million at December 31, 2024. 
 
   -- Net cash used in operating activities was $4.7 million for the three 
      months ended March 31, 2025, compared to $10.1 million for the three 
      months ended December 31, 2024. This decline in net cash used by 
      operations was primarily due to workforce reduction and overall cost 
      control initiatives. 

Use of Non-GAAP Financial Measures

We monitor a number of financial performance and liquidity measures on a regular basis in order to track the progress of our business. Included in these financial performance and liquidity measures are the non-GAAP measures, Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA. We believe these measures provide analysts, investors and management with helpful information regarding the underlying operating performance of our business, as they provide meaningful supplemental information regarding our performance and liquidity by removing the impact of items that we believe are not reflective of our underlying operating performance. The non-GAAP measures are used by us to evaluate our core operating performance and liquidity on a comparable basis and to make strategic decisions. The non-GAAP measures also facilitate company-to-company operating performance comparisons by backing out potential differences caused by variations such as capital structures, taxation, depreciation, capital expenditures and other non-cash items (i.e., embedded derivatives, debt extinguishment and stock-based compensation) which may vary for different companies for reasons unrelated to operating performance. However, different companies may define these terms differently and accordingly comparisons might not be accurate. Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA are not intended to be a substitute for any GAAP financial measure. For the definitions of Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA and reconciliations to the most directly comparable GAAP measure, net loss, see below.

We define Non-GAAP EBITDA as net loss excluding interest, income taxes, depreciation and amortization. We did not incur amortization expense during the years ended December 31, 2024 and 2023.

We define Non-GAAP Adjusted EBITDA as Non-GAAP EBITDA further adjusted for professional fees related to the secured convertible notes, other expense (income), net, changes in the fair value of financial instruments and stock-based compensation. Other expense (income), net includes foreign exchange gain or loss and other non-operating income and expenses not considered indicative of our ongoing operational performance.

The following table presents a reconciliation of Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA to its net loss for the periods indicated.

 
                                           Three Months Ended March 31, 
                                      -------------------------------------- 
(in thousands of U.S. dollars)               2025                 2024 
                                                               ---------- 
Net loss available to stockholders     $      (32,581)      $     (15,178) 
   Interest expense                                --                   9 
   Income tax expense                             715               1,433 
   Depreciation expense                         2,687               2,845 
                                          -----------          ---------- 
Non-GAAP EBITDA                        $      (29,179)      $     (10,891) 
   Professional fees related to 
    Secured Convertible Notes                      --                 971 
   Other expense (income), net                    167              (1,401) 
   Change in fair value of financial 
    instruments                                22,361                 752 
   Stock-based compensation                       595               1,446 
                                          -----------          ---------- 
Non-GAAP Adjusted EBITDA               $       (6,056)      $      (9,123) 
                                          -----------          ---------- 
 
 

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