Spire Global Reports 31% Revenue Decline in Q1 2025, Despite Increase in Annual Recurring Revenue

Spire Global, Inc. reported a significant decline in its financial performance for the first quarter of 2025, with total revenue falling to $23.9 million, a decrease of 31% from $34.8 million in the same period last year. The company attributed this drop primarily to a one-time performance obligation of $9.6 million recognized in the previous year, which did not recur. Additionally, revenue from radio occultation (RO) services decreased due to a reduced value of NOAA’s weather award. Despite these challenges, Spire noted an increase in annual recurring revenue (ARR) from existing customers, which rose to $129.3 million, up 7% from $120.9 million a year earlier.

The company's operating expenses surged to $34.2 million, up from $21.2 million in the prior year, driven by increased research and development costs, general and administrative expenses, and a notable loss of $5.2 million on decommissioned satellites. The loss from operations for the quarter was $25.4 million, compared to a loss of $12 million in the same quarter of 2024. The net loss for the period was $20.7 million, or $0.77 per share, an improvement from a net loss of $25.5 million, or $1.17 per share, in the previous year.

In terms of strategic developments, Spire completed the sale of its maritime business for approximately $233.5 million on April 25, 2025, which is expected to enhance its liquidity position. The company also raised $37.3 million through a private placement of Class A common stock in March 2025. These transactions are anticipated to provide sufficient working capital for at least the next year. The company’s cash and cash equivalents increased to $35.9 million as of March 31, 2025, compared to $19.2 million at the end of 2024.

Operationally, Spire's customer base saw a decrease, with the number of annual recurring revenue (ARR) customers dropping to 570 from 672 a year earlier. The ARR net retention rate also declined to 97% from 102%, reflecting challenges in maintaining customer contract values. The company’s total headcount increased slightly to 439 employees, up from 430 in the previous year, as it continues to invest in its growth and technology development.

Looking ahead, Spire Global remains focused on expanding its customer base and enhancing its product offerings. The company is navigating a challenging macroeconomic environment, including fluctuations in foreign currencies and geopolitical tensions, which may impact its operations. However, Spire is optimistic about its long-term growth prospects, particularly through its innovative Space Services solutions and ongoing investments in research and development.