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.