HawkEye 360 (NYSE:HAWK) raised its 2026 revenue and adjusted earnings outlook after reporting record third-quarter revenue, driven by its acquisition of ISA and growth in international sales.
The space-based radio-frequency intelligence provider reported revenue of $59.3 million, up 84% from a year earlier and 19% from the second quarter. Excluding ISA, revenue increased approximately 24% year over year. The company reported a net loss of $163,000, compared with net income of $1.7 million in the prior-year quarter.
Adjusted earnings before interest, taxes, depreciation and amortization rose to $13.3 million from $9.6 million a year earlier. The adjusted EBITDA margin was approximately 22%, up from 14% in the second quarter.
Higher outlook and new contracts
HawkEye 360 now expects 2026 revenue of $225 million to $227 million, up from its previous forecast of $215 million to $220 million. It raised its adjusted EBITDA outlook to $38 million to $40 million from $30 million to $36 million.
Backlog stood at $300.3 million as of Sept. 30, up from $292.2 million at the end of June. That figure excludes $135 million in contracts signed in the six weeks after the third quarter ended, including more than $70 million in European awards and approximately $60 million in restricted U.S. government contracts.
CEO John Serafini said the company has the contracts in place to meet its 2026 revenue outlook and that the vast majority of the $135 million in awards extends into 2027 and beyond. CFO Craig Searle said the awards point to a meaningful improvement in year-end backlog, but the company did not provide a backlog conversion estimate.
Serafini initially said the $135 million was related to traditional data and analytics sales under service-level agreements. He later clarified that some of the work was relevant to ISA and was not solely in the traditional data and analytics format.
International demand and U.S. government business
International revenue increased 76% year over year to a record $23.3 million, with all of that growth organic, Searle said. The company secured $54 million in international contracts during the quarter across at least 11 allied partners and nations.
Serafini said HawkEye 360 serves more than 40 international entities, reducing its dependence on any single government’s budget process. He also said international contracts often carry stronger pricing and longer durations. Searle said the company experienced a blended, double-digit percentage price increase per collection year over year, partly because of a greater share of higher-priced offerings.
U.S. revenue rose 90% to $36 million, including $19.5 million from ISA. Excluding ISA, legacy U.S. revenue declined $2.5 million from a year earlier but improved 14% sequentially.
Serafini highlighted an August award from the National Reconnaissance Office, saying HawkEye 360 was the first commercial RF provider to move from the agency’s testing and evaluation program into an operational augmentation contract. He said the company expects to scale the contract as additional statements of work become available.
Addressing potential U.S. budget uncertainty, Serafini said the company’s growth plans do not depend on new programs or supplemental funding. He said the substantial majority of anticipated 2027 U.S. government revenue is tied to established programs, proposed base-budget programs or existing customer budget authorities.
Satellite plans and investment
HawkEye 360 launched Clusters 15 and 16 in October and has established contact with all six satellites, Serafini said. Commissioning is underway. The clusters can collect multiple signal types while simultaneously downlinking data, a capability the company expects to reduce delivery times.
The first next-generation Block 3 Kestrel cluster remains on track for launch in the first quarter of 2027, with a second planned for midyear. Serafini said Block 3 spacecraft are expected to be 75% less expensive than the current Block 2 generation and could reduce launch costs because of their smaller size.
The company ended September with $494.9 million in cash and cash equivalents and no debt outstanding. Searle said HawkEye 360 generated $9.6 million in operating cash flow and $137,000 in free cash flow during the quarter.
Serafini said the company is evaluating acquisitions that could expand its capabilities in areas including electronic warfare and space domain awareness. Searle cautioned that the company is making investments in the fourth quarter and beyond, while describing the third quarter as evidence of the business’s potential operating leverage.
About HawkEye 360 (NYSE:HAWK)
HawkEye 360 is a geospatial intelligence company that uses a constellation of small satellites to detect, locate and characterize radio-frequency (RF) signals around the world. Its data can help customers understand activity such as communications, radar use and other electronic emissions, including in areas where ground-based monitoring is limited. The company combines satellite-collected RF data with analytics and software tools to deliver intelligence products and services. Its customers include government and defense organizations, as well as commercial users with needs related to maritime awareness, security and other forms of activity monitoring.
