Satellogic Inc.

Good afternoon, and welcome to the Satellogic Second Quarter 2026 Financial Results Conference Call. All lines have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. During today's call, management may make statements relating to goals and objectives for the future operations, financial and business trends, business prospects, future financial metrics, customer contracts and pipeline, Revenue Generation and Expectations for Future Performance that constitute forward-looking statements under the Federal Securities Laws. Any such forward-looking statements reflect management expectations based upon currently available information and are not guarantees of future performance. They involve certain risks and uncertainties that are more fully described in Satilogic's SEC filings, including the Risk Factor section of our quarterly reports on Form 10-Q for the quarter ended June 30, 2026, our annual reports on Form 10-K for the fiscal year ended December 31, 2025, and other filings with the SEC. Actual results, performance, or achievements may differ materially from those expressed in or implied by these forward-looking statements. Statologic undertakes no obligation to update or revise any forward-looking statements to reflect events or developments after the dates of this call. On this call, management will also discuss financial measures not determined in accordance with U.S. GAAP, including EBITDA, adjusted EBITDA, and adjusted operating cash flow. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are presented in the appendix to today's presentation and in the earnings materials posted on the investor relations section of the website. A press release detailing these results was issued this afternoon and is available at satalogic.com. Hosting today's call will be Satalogic's founder and chief executive officer, Emiliano Kargieman, and chief financial officer, Rick Dunn. With that, I will now turn the call over to the CEO. Please go ahead, sir.

Thank you, operator, and good afternoon, everyone. Welcome to Satellogic's second quarter 2026 earnings conference call. Joining me today is Rick Dunn, our chief financial officer. I'll start with the quarterly results and the commercial wins that drove them, and then comment on where Contacted by a Cloak stands for the balance of this year. Rick, we'll then take you through the financials in detail. After that, I'll come back to where this market is going, why we think we're positioned to lead it, and provide an update on Merlin and our infrastructure build-out. I then close with key takeaways before we open the line for questions. In the second quarter, we grew revenue 259% year-over-year to $15.9 million. generated positive operating income and positive adjusted EBITDA for the first time in the company's history. And when revenue grew 259%, operating expenses increased only 46%, demonstrating the real operating leverage of our vertically integrated model. This milestone represents a major step towards sustained profitability and validates the operating leverage we have discussed over the past few quarters. We had four key sovereign and defense wins and milestones as follows. First, we successfully delivered the first satellite in Portugal's 18 million CEA program, converting nearly half the program to recognized revenue. Second, we secured and started delivery of an international Aleph Observer agreement with a defense customer valued at more than 18 million, moving from initial trial to full-scale deployment in under six months. Third, in April, we closed a $12 million agreement for the in-orbit delivery and transfer of a commissioned new set satellite to a sovereign defense customer. This is the third sovereign transaction we have announced in the past two quarters. And fourth, we announced strategic collaborations with Synmax and Spacenote to build AI-powered geospatial intelligence products in our platforms. We recognized $22 million in revenue in the first half of the year and ended the quarter with $80.7 million in contracted, non-cancellable total remaining performance obligations. Significantly, $45.8 million of that RPO is contracted for realization within the next 12 months. This gives us strong top-line visibility as we continue to convert our growing defense pipeline and lean into the strong global sovereign demand. To ensure we captured this demand, we expanded our sales organization with three senior industry leaders and ramped up satellite production at our Montevideo facility to support our Merlin, NUSEP, and NextGen programs alongside sovereign deliveries. During the quarter, we also welcomed retired Lieutenant General Michael E. Williamson to our board as an independent director. Now, before sharing updates on Atlas Observer, the transition to persistent global intelligence, and the build-out of our Maryland constellation, I will hand the call over to Rick to walk you through the financial details. Rick?

Thank you, Emiliano, and good afternoon, everyone. Today's geospatial data market is supply-constrained, with customers demanding significantly more data at lower costs. Because we operate one of the largest high-resolution constellations in the world, we benefit from considerable operating leverage. By utilizing our existing in-orbit fleet capacity and fully leveraging our cost leadership, we're well positioned to capture this demand. The second quarter and the first half of 2026 mark a structural and financial inflection point for Satellogic. Starting with revenue, total revenue for the second quarter was $15.9 million, up 259% year-over-year. For the first six months of 2026, total revenue reached $22 million, representing an increase of 181% compared to $7.8 million in the first half of 2025. Looking at our Q2 business lines, space systems contributed $8.8 million, or 55% of revenue, driven by sovereign satellite deliveries. Data and analytics contributed 7.1 million, or 45% of revenue, as customer subscriptions for persistent monitoring expanded. We also expanded our geographic reach across our sovereign and defense customer base. Europe led the second quarter at 58% of revenue, or $9.2 million, driven by SEIA delivery. The Middle East and North Africa contributed 3.6 million, or 22% of revenue, while the Americas generated 2.3 million, or 14% of revenue, and Asia Pacific represented 900,000, or 6% of revenue. Turning to margins and cost structure, we delivered these results with an 82% gross margin in the second quarter, exclusive of depreciation. Total operating expenses were 15.7 million, up 46% in comparison to the 259% revenue growth, highlighting the operating leverage inherent in our vertically integrated model. This operating leverage drove profitability metrics for Sadlogic as follows. First, we achieved positive quarterly operating income of just over $300,000 for the quarter. Second, we delivered positive adjusted EBITDA of $2.8 million for the quarter. Both of these are first for the company. Lastly, adjusted EBITDA loss improved $8.7 million year-to-date, coming in at $1.4 million, compared to $10.1 million in the first half of 2025. Our gap net loss for the quarter was $20 million, which includes a $19.7 million non-cash fair value charge, resulting from the remeasurement of Financial instruments tied to stock price movement. Turning to cash flow, net cash used in operating activities was 8.6 million in the second quarter compared to 4.3 million used in the prior year period. It is important to note that GAAP operating cash flow excludes 8.3 million in proceeds from the sale of an in-orbit satellite originally capitalized as part of our own fleet. These proceeds are presented within investing activities. From an adjusted operating cash flow basis, which includes the in-orbit satellite sale, our operating cash flow for the first half was essentially break-even at $100,000. Looking at the balance sheet, we closed the quarter in a strong liquidity position with $112.8 million in cash and cash equivalents. In terms of backlog, total non-cancelable remaining performance obligations stood at $80.7 million as of June 30th, with $45.8 million expected to be recognized in the next 12 months. This is an increase of $15.9 million this quarter, reflecting $28.6 million of additions to backlog and $12.7 million recognized as revenue in the quarter. Additionally, we delevered by $12 million as a result of an equity conversion exercised by our secured convertible noteholder during the quarter. Our secured convertible debt reduced from $30 million to $18 million during the quarter. With our operating leverage, growing recurring revenue, and expanding defense pipeline, we expect 2026 to be a major step towards sustained profitability, crossing into positive free cash flow in 2027 as Merlin enters operational service. With that, I will turn the call back over to Emiliano.

Thank you, Rick. We see the Earth observation market undergoing a fundamental transformation. For years, the gaps in this market were not so much a technology problem, but a unit economics and business model problem. Legacy providers could not build the infrastructure required to capture information globally and persistently at a reasonable cost, and could not deliver data at the scale required. Customers suffered the consequences. Sparse, expensive, and capacity-limited systems were insufficient to serve a growing demand for geospatial awareness and forced the legacy Earth observation business model to be transactional, expensive, and exclusive. A customer requests an image of a specific coordinate, receives a fragmented snapshot, experiences breaks in cadence, and buys imagery scene by scene at a high cost, leaving them with an incomplete view and exposing them to decision risk. With the technology stack that Satellogic has built over the last few years, that is no longer the case. Our satellite capacity, unit economics, and scalability allow us to build the infrastructure required to deliver persistent global intelligence. Persistent global intelligence is a different category. The requirement is to identify and monitor areas continuously, delivering an uninterrupted stream of situational awareness. As persistent monitoring becomes available in the market, customers are leaning into continued monitoring service to replace episodic imagery. We believe this shift is structural, supported by our unit economic breakthroughs, and fueled by heightened geopolitical urgency, distributed threats, and the coming of age of AI and analytics. Defense and Intelligence customers are starting to prioritize persistent monitoring over transactional advice. That moves our business towards high-margin, multi-quarter subscription programs. This quarter, we started to see the impact of this change in our numbers, rather than only in customer conversations. Our data and analytics revenue, as Rick mentioned, was $7.1 million in the second quarter, up from $4.6 million in the first. A 54% sequential growth on the subscription side of business, even in a quarter where satellite deliveries were the headline. Olive Observer, the persistent monitoring platform we launched in February, is converting one-off imagery buyers into multi-quarter monitoring subscriptions. Six months ago, persistent global intelligence was at pieces we were describing to you. It is now becoming a core driver of the company's business. This brings me to why we are positioned to lead this category. Vertical integration and our payload innovations are what make persistent global-scale coverage economically viable and poised for growth. This comes down to physics and unit economics. Our patent-protected camera design lets us capture an exceptional volume of high-resolution imagery from a small set form factor, and combined with a fully loaded new set cost of approximately $1.3 million per satellite, and a small fraction of the industry standard, that collection efficiency sets our operating economics apart. That cost structure is why we can serve persistent monitoring at theater scale and still hold the gross margins that Rick just walked us through and why our margin profile improves rather than compresses as we scale collection. As the market shifts to always-on monitoring, StatoLogic builds the infrastructure that produces the persistent intelligence. For sovereign defense customers, this infrastructure delivers strategic autonomy, intelligence continuity, and decision advantage independent of third-party priorities and without dependencies on foreign suppliers. Here is how this infrastructure is built across a series of integrated layers. First, operational monitoring with new sets. Our 50-centimeter class Mark V and Mark VI satellite constellation is operational today. Powering persistent monitoring across thousands of priority sites daily and driving subscription revenue through AlephObserver. Second, the global baseline detection layer we're building with Merlin, or Merlin Constellation, is on track to start launching in October 2026. The first satellite is fully integrated and ready to ship to the launcher, having passed all environmental and functional tests. Merlin is our daily global remap constellation, designed to create a dedicated global baseline detection layer. Building on the onboard computing, edge AI, and inter-satellite links we engineer for our usage fleet, Merlin satellites incorporate a wide-slot, high-resolution imager and the ability to process data directly in orbit and communicate across our entire constellation in real time. Rather than waiting for a ground station downlink, Merlin can detect changes at the edge and automatically TIP and Q or higher resolution constellation in seconds, collapsing what used to be a multi-hour ground loop to minutes. The third layer is precision verification with NextGems or 30 centimeter class system currently in development to confirm, characterize, and verify activity. On top of these data collection layers sit our and our partners' AI and analytics and our customers' agentic platforms, implementing the automated workflows that deliver decisions at scale and on time. The true power is in the AI-first automated loop amongst these layers. The baseline detects, the monitoring layer sustains, and the precision layer verifies, giving our customers an integrated, always-on decision advantage. Our product offering across data analytics and space systems ranging from imagery archive all the way to local assembly and integration facilities and supply chain localization is built to support our customers in their journey towards operating a truly sovereign, autonomous, and independent infrastructure for persistent global intelligence. As a quick aside, I mentioned that Merlin is on track for its October launch, and I want now to draw your attention to this image. showing the first Merlin satellite, Merlin 01, fully integrated in our clean room last month. This is our first flight model, built end-to-end in-house based on our extensive bus heritage from the New South Constellation after having successfully passed all environmental qualification and functional testing. The hardware is ready to ship to the launch site in time for a planned October launch window, and the team is now focused on the integration of the next set of satellites in the fleet. It is good to be able to share this picture and highlight that Merlin is progressing as planned, executing against the core fundamentals we committed to. Before summarizing our key takeaways, I want to share an important leadership update. As we previously disclosed, August 21st will be Rick Dunn's last day as Chief Financial Officer of Satellogic. Rick has been with us for seven and a half years. He built the financial infrastructure that carried this company through going public, through our operational scaling and through to the strong financial results we reported today. Our search for permanent successor is active. To ensure a seamless transition, Dustin Greer, our senior vice president and corporate controller, will assume the role of interim CFO effective August 21st if a permanent successor has not yet been appointed. Dustin is supported by an exceptional finance team, and we have complete confidence in their continued execution. I will hand the floor to Rick for a few brief comments.

Thanks, Emiliano. After seven and a half years, when I look at where we started against where we stand today, recording our first positive operating income and adjusted EBITDA this quarter, I'm immensely proud of what this team has built. We established a financial foundation for the first vertically integrated geospatial company and stood up the infrastructure for persistent global intelligence. The company's financial footing is the strongest it has ever been, and we've built a resilient finance organization to support the business as it continues to scale. The trajectory is clear, and I look forward to watching Sadlogic execute on its next phase of growth. Thank you, everyone.

Thank you, Rick. On behalf of our board and the entire team, thank you for your leadership and your dedication. To wrap up, I want to leave you with five takeaways from the second quarter. First, financial inflection has been achieved. A record Q2 revenue of $15.9 million and positive adjusted EBITDA of $2.8 million prove the operating leverage of our business model. Second, the persistent loan intelligence market shift is underway. The market is transitioning from transactional imagery bias to always-on monitoring, and we build an infrastructure that powers the subscription problems. Third, Vertical integration is our moat. In-house design and manufacturing and the differentiated cost structure and scalability it supports makes the other scale persistent monitoring economically viable and highly profitable. Fourth, we are fully funded to global awareness. Operating one of the world's largest commercial constellations today, our Merlin constellation remains on track for its first launch in October 2026. and fully funded to launch a global baseline detection layer equipped with edge AI and inter-satellite links with full service in the second half of 2027. And fifth, Satellogic is well capitalized to respond to strong market demand. We are operating from a position of strength with $112.8 million in cash, debt principal reduced to $18 million and strong market traction with sovereign customers across all of our product lines. With that,

Operator, please open the line for questions.

Thank you, sir. Ladies and gentlemen, at this time, we will be conducting a question and answer session. If you would like to ask a question, please press star and then one now. A confirmation tone will indicate your line is in the question queue. You may press star and then two if you would like to remove yourself from the question queue. Again, if you would like to ask a question, please press star and then one now. The first question we have comes from Andrew Shepherd of Cantor Fritzgerald. Please go ahead.

Hey, everyone. Good afternoon. Thank you so much for taking our questions and congratulations on the quarter. Rick, wishing you all the best as well. It's been great working with you. And again, wishing you all the best. In terms of questions, first one is on Merlin. So you reaffirmed that Merlin is on track for the October launch window, which is very exciting. I guess a few quick questions here is, Emiliano, can you maybe remind us what are the key milestones left towards bringing it to the pad that investors should be tracking? And more importantly, as we move towards operational capacity next year, My other question there is, how are you thinking about the cadence for future launches? And how quickly do you think you could potentially wrap up? Thank you.

Hi, Andrew. Thank you for the question.

Good talking to you. So yeah, Merlin is fully on track now for first launch window, which is in October. All of the functional tests, all of the environmental tests on the satellite have been performed. The satellite is essentially packaged at our manufacturing facility and ready for pickup. So next phase is it will go to the launcher and be integrated into a launch vehicle, in this case SpaceX transporter mission in time for the launch window in October. So on the Satellogic side, I would say is the shipping and receiving the satellite on the other side and the launch campaign. So putting the satellite in the rocket, which we've done already more than 50 times in the past. So it's something that we're quite familiar with. And then the satellite will go up in October. There's a commissioning phase. for the first satellite while we continue to produce the next Merlin satellites that will be launched in two launches in 2027. And we expect both launches in the first half of the year. So the full constellation to provide complete service will be up if all goes according to plan in the first half of the year. and then we will start delivering full service in the second half of the year. We might and we are expecting to work with some of our encore customers and initial customers as soon as we launch the first satellite in October to familiarize them with the data and to build the processing pipelines that they will need to operate at scale. So there will be a phase there of development. Thank you very much.

That was very, very helpful. I appreciate all that color. And maybe just as a quick follow-up, so you, you know, your backlog increased materially quarter over quarter, and you provided a great slide with great granularity, which we appreciate. My question here is, you know, you also talked about a lot of the macro landscape and things that are unfolding. So I guess my question is, you know, what other opportunities are you currently potentially working on that are not included in the backlog that you might be able to maybe share with us? And how are you thinking about continuing to increase the pipeline going forward? Thank you.

Yeah, so we are experiencing, I think, good tailwinds from the market in the sense of growing demand internationally and in the US. Obviously, geopolitical tensions tend to increase the need for persistent intelligence, and so or customers and some of the customer conversations that we've been having over, I would say the last few years are accelerating because of this. On top of that, there's an increase in defense budgets across the board from US allies around the world, which is also helpful to build up these pipelines. And we also see structural are contributing here in the wide adoption of AI and analytics and integrating AI analytics into processing pipelines to deliver decision-grade intelligence in the defensive intelligence side. And analytics and AI are essentially allowing our customers to basically consume a lot more data at a faster pace and still derive the right signals that they need for intelligence. So I think all of these factors we see contributing to increase demand. To respond to that demand, we have brought in some fantastic new members to our sales team that have the relationships and the international experience to help us bring What we're doing to customers at a faster pace, right? So we are responding to that demand. I think, you know, our pipeline, I think, is very strong. We continue to see traction in the market. We continue to see increased interest. And we expect that pipeline to continue to convert in the second half of the year into 2027 at a fast pace.

Wonderful. Thank you so much. Congrats again on the quarter.

We'll pass it on. Thanks, Andrew.

Thank you. The next question we have comes from Jeff Fundry of Craig Hallam Capital Group. Please go ahead.

Great. Thanks. Thanks for taking the questions. And, Rick, it's certainly been a pleasure working with you. We wish you all the best. Emiliano. Thank you, Jeff. Yeah, you bet. So just a few things. I guess, Emiliano, on Aleph Observer, you know, February 26 launch, I think you mentioned this was the year of pilot's. Can you dive a little deeper there, maybe even quantify how many pilots, how are they progressing, what's the feedback, all of that relative to expectations, any other color you'd share would be great.

Sure. Thanks, Jeff. Thanks for the question. So, yeah, I mean, in reality, I would say, you know, we expected 2026, as we mentioned before, to be a year of pilots because typically, you know, A new product like this requires customers to get familiar with it. And for them, particularly government customers on the defense side, it requires that they find the budgets to pay for this distinct subscriptions and so on. So we expected 2026 to be able to tap into a portion of their discretionary budgets for pilots, and then those convert into full range You know, services and kind of the cadence that we expect or the number of sites that we expect them to monitor just going into 2027, right? I think we've been pleasantly surprised, you know, by the speed at which we are converting some of these pilots into full programs. I think the $18 million contract we announced a few months ago is a very good example. I mean, we went from The initial pilot to a full-scale program that's at $80 million per year in less than six months, I think. And so that's been a really good surprise. We obviously do not expect all of the pilots that we're doing to progress at the same speed, but I think that is a really good indication of the traction that we're getting in the market. and the team is actively working with customers across all of the geographies that we serve now on the initial pilot program. So we really expect to have more news to share in the second half of the year.

Got it. And more broadly then, just as I look at the pipeline, or as you look at the pipeline, cycle times, deal sizes, deal types, competition, geography, any aspects of that are notable in your mind that have changed maybe in the last 180, maybe even last 90 days?

No, nothing out of what we have already commented on, which is we are seeing some of the conversations that we're having, you know, on accelerated timelines, let's say. We expected, typically, we would expect, you know, soaring spaces and fields because they are You know, large deals, we expect typically longer sales cycles over a year or so. And we are seeing, you know, some cases in which we are seeing deals progress through the pipeline at a faster pace. This is also due to, I think, the, you know, the factors that we mentioned before. So we're seeing some of the and many more. So, you know, we're seeing sales cycles on the space systems and particularly being compressed, which is good news. But in general, I would say, you know, both business lines, data analytics and space systems still follow the same patterns that we're expecting, right? With space systems being lumpier deals with longer sales cycles and data analytics deals being You know, smaller ticket sizes, faster sales cycles, but also, you know, subscription-based recurring revenue that helps us build a predictable base, right? So I think those business lines are behaving pretty much to expectation, I would say.

Yeah, that's great. Maybe one last, I mean, I think certainly you commented, Werfer, is, you know, driving almost infinite need AI wants, all the sensor data it can provide. So I think with Merlin and a lot of things you're talking about, you're playing directly to that. But I'm curious on the AI sprint. Has your perspective on the AI impact on your business changed in any material ways last kind of 90, 180 days?

We believe that, you know,

AI is here basically as a structural force in our market is here to stay, right? Like we believe there is a huge impact in terms of the ability of our customers to consume more data at a faster pace and it creates more demand for the data that we produce and that our constellations will produce in the future, right? So we think this is a structural change. We don't think this is a fad. So I think That supports our outlook into the future. I think it supports also this year being such a transformational year for the company and kind of our breakout year as we start to, as Rick was saying, as we start to show the impact of our operating leverage by increasing our compliance. But yeah, nothing's fundamentally changed in Norma and Jeff. I think we're seeing a lot of confirmation from the market of this strength.

Yeah. Well, nice numbers. Love the incremental margins. A lot here to like. So congrats to you and the team.

Thanks, Jeff.

Thank you. The next question we have comes from Suji De Silva of Roth Capital Partners. Please go ahead.

Hi, Emiliano. Hi, Rick, and best of luck in the transition, Rick. So on the data analytics revenue, it was very strong sequentially, and I already mentioned that customers are upgrading to persistent monitoring. Can you talk about maybe the metrics that could show that that kind of Q over Q strength is happening and maybe whether it'll persist, you know, things like ARPU or customer utilization, maybe anything that will help us understand the transition from imagery to persistent monitoring?

That's a super good question. We're not sharing those metrics yet, but we're definitely collecting them. We've had almost two quarters since the launch of AdWords Observers, so we would like to observe the performance for a couple more quarters before we start sharing and so on. We think those are valuable as longer-term trends, but we're definitely looking at them and we believe this subscription business that we're building on the data analytics side should have metrics compatible with with data service or software service, business models in general. So I think those are the benchmarks that we are using internally to measure performance.

Okay, great. Now look forward to those and they should probably tell a positive story when you do put them out. And then my other question is on the Synmax and Space Know applications. Sounds like you're building a platform where more apps can be layered on. Is that sort of a virtuous circle that the apps bring customers to the platform? or is there an actual business model financial contribution from these apps to you above and beyond the value add of the network?

I think the first thing that I should mention with SpaceKnow and with Synmax is that we're bringing to our customers models trained for their specific use cases. Best of breed models trained for the specific use cases. And this adds value to our customers directly. And it also, as mentioned before, allowed us to deliver more data that has a real impact. So I think it's a win for every party here. It's a lot of added value to customers. It's obviously a good business over time for partners building the applications. on top of our data and to the extent that it allows us to deliver more data to more customers, it's a great win for Satellogic too, right? So we think it's super synergistic. You can expect to see more partners and more applications signed on top of our data feeds, particularly, you know, obviously for Aleph Observer today, but also particularly as Merlin starts to become operational next year. This is going to be One of the ways in which we deliver value to the end customers, right?

Okay.

Thanks, Emiliano. Thanks, Rick. Congratulations on the results again.

Thanks. See you.

Thank you. Thank you. The next question we have comes from Alex Lattimore of Northland Capital Markets. Please go ahead.

Hi, Emiliano. Best of luck, Rick, in the journey. I just have one question on talent here. I was wondering if there are any insights into a potential contract for Newell later this year or early 27?

Yes. Hi. Thanks for the question, Michael.

So we are... We continue to work with Panenteers as a great partner today, delivering data mostly to the U.S. government. We're not in a position today to confirm or any follow-on contracts with them, but they have been a strong partner for us over the last four and a half years, and the end customers are receiving a lot of value from this collaboration. So we have are working with them in discussing how these relationships with the end customer continue after the end of the current contract.

Yeah, I'll just jump in and add that, just add real quick, Alex, and thanks for the question, that as you're aware, this relationship with Palantir has been structured, historically has been structured as a barter transaction. So the net cash to us is zero. and I think we did that at a time where bringing them on board as a partner and establishing a relationship with them and getting them to use our data was super important. It continues to be super important and we're optimistic about our ability to hopefully continue providing them with our data and analytics, but we're also at a different point in the business where We don't necessarily feel like we need to barter out our data and analytics at this point. So I think that they've used our data, they like our data, and hopefully they'll continue to use our data and we'll actually get cash for it. Great.

Thanks. Another one. So it sounds like There are many pilots in the work here. I was wondering if you had insights into the future here, if you can look into your crystal ball to see what the average deal size with sovereign nations might be going forward.

Yeah, I mean, Emiliano, you can feel free to jump in too, but it will continue to vary. It depends really deal to deal. and it's hard to put parameters around deal size. I think that we're certainly looking at seven and eight figure deals, that much I can say, but that's obviously a pretty wide range. It's just going to depend on the customer, their needs and how quickly they're able and willing to move on either data acquisition or or a space systems deal.

Great. One final quick one. I was just wondering how much open capacity you currently have on your constellation. And then also, is it correct to think about full capacity, data subscription capacity on NuSAT at about 65 million?

Yeah, it's...

Emiliano will elaborate on this, but no, I wouldn't make that assumption on 65 million. I think that capacity is much less relevant from our perspective as we enter into persistent global monitoring and intelligence, and Emiliano can expand a bit on that. But I think we talked about capacity at a time where we had You know, a lot of it and a lot of data to sell. And we have a slightly different business model. You know, with persistent global intelligence, it's just, you know, much, much less relevant.

Yeah, no, look, I think, you know, there's, there's the potential for significantly more than 65 million revenue with our existing constellation on the data delivered through Olive Observer and our subscription programs. So no, I don't think that's a reasonable cap. There are several factors there. On one side, I would say we continue to have the largest unencumbered capacity in the market today. We are adding customers and increasing revenue, but That doesn't put a huge dent into the capacity in terms of what we can deliver in the future, not so far. The other thing I would say is you can expect that in many areas of the world where customers tend to cluster in terms of needs to monitor, we can deliver the same monitored sites to more than one customer. So there's not a one-to-one relationship between the number of sites that we capture and the number of customers that we can serve. With the same number of sites that we're capturing, we can serve more than a single customer. So basically, I would say the potential is significant.

That's great, Tyler. Thank you. Thank you all. Thank you, Rick. Thank you, Emiliano. Thank you, Alex.

Thank you. The next question we have comes from Zon Adar of Freedom Capital Markets. Please go ahead.

Hi, Emiliano. Hi, Rick. Thank you for taking my question, and I have a couple of them. First, you previously described about space systems pipeline of nearly 1 billion, and how much of it has a defined budget, maybe some procurement timeline or technical scope, or is it done It'll be in early stage.

Well, yeah, our pipeline continues to be in that order of magnitude. And in order to make our pipeline, it all has a defined budget. So there's a customer with an identified need and a budget to move forward. So they're all qualified opportunities from our perspective. And I'm sorry, I lost the second part of your question.

Is the budget still being in early stage?

I mean, I think you're asking, I'm not sure what you're asking, but I'll try and answer it. You know, anyway, you know, the pipeline, you know, each deal in the pipeline is at a different stage depending on the customer and the length of time we've been talking to them. and their ability to move and desire to move more quickly than more slowly. So each one of these sovereign deals is very unique. The buyer is very unique, the process is unique and how long they take to convert is sort of all over the map. On a space systems deal, we've done them as quickly as, we've converted them as quickly as four to six months and as long as three years. With data and analytics, those tend to convert much quicker and they don't really linger on the pipeline that long because there's typically a process and the customer either makes a data buy from us or they don't and then they cycle off the pipeline. Hopefully that answered your question.

Okay, thanks. I appreciate it. That's really helpful. So, and the second one is related to defense missions. So, for which defense missions does one meter resolution daily coverage remain sufficient and where customers is increasingly requiring the better resolution imagery for qualify for procurement

Yeah, I can take that and thank you. So our current constellation delivering 50 centimeter resolution imagery is really at the sweet spot of the requirements for most defense customers. And if you ask customers, they will always want the highest possible resolution. You know, if you can deliver 30 centimeters, they would want 30 centimeters. If you can deliver 15 centimeters, they would probably want them too. The real point here is you need to be able to deliver the imagery over the sites that they're interested in monitoring. So, you know, 30 centimeter resolution imagery is fantastic, but if you can only deliver one image every three days to the customer, then it doesn't really fit an operational demand. I think what we're doing with Aleph Observer and or persistent global intelligence infrastructure in general by being able to deliver consistent imagery on a daily basis over thousands of sites to our customers, we are giving them the ability to look at things that they've never been able to see before, right? So more than resolution, I think what is important here is the action ability. What can you see in the images? It's not a number. What can you see there? Is the equipment there? Is the aircraft carrier where it was before? Is the submarine where it was before? Have things moved? This kind of situational awareness on a daily basis that Alipop Server empowers our customers to do is something very new. And I think that's where the value lies, more than in any specific number in terms of resolution or anything else.

Okay, thanks.

I appreciate it.

Thank you. At this stage, there seems to be no further questions. I will now hand the call over to Emiliano for closing remarks. Please go ahead.

Thank you, operator.

And thank you all for joining us today. The second quarter was the quarter that Satellogic crossed over. We are building... The Infrastructure for Persistent Global Intelligence, Continuous, Proactive Awareness of the Places, Assets, and Activities that Matter. We intend to lead this category as it forms, and we look forward to updating all of you on our progress next quarter. If we were unable to address any of your questions today, please reach out to our investor relations team at ir.stavrologic.com.

Thank you, and have a good afternoon.

Ladies and gentlemen, that then concludes today's conference. Thank you for joining us. You may now disconnect your lines.