Revenue Beat, Backlog Conversion Accelerates - Investment Spend Moves Higher
D&I drives another beat. Q2 revenue surged 58% y/y to $116.1M, ~11% above consensus and marking the sixth straight quarterly beat. The upside was D&I-led, with revenue doubling to $81M on higher data usage by government customers and ~$14M of Pelican delivery revenue from Swedish Army.
AI drives commercial recovery. Commercial revenue rose 17% y/y to $17.6M, marking a second quarter of double-digit growth. AI-enabled infrastructure monitoring is emerging as a new demand driver, highlighted by a six-figure renewal with a hyperscaler using Pelican imagery to track data center and semiconductor facility construction.
$11.8M of AEBITDA surprise. Q2 AEBITDA reached a record $13.9M (12% margin) on revenue outperformance. Q3 should reverse some of that benefit on mix, while the FY27 guide of $3–10M leaves limited room for profit upside. FY28 should mark a step-up as the satellite services pipeline matures.
