1Spatial (SPA) AI Stock Analysis

• Market Cap: £75.41M
• Dividend Yield: N/A
• Average Volume (3M): 178.42K
• Price to Earnings (P/E): 2250.0
• Beta (1Y): 0.07
• Revenue Growth: 5.35%
• EPS Growth: -97.78%
• Country: UK
• Employees: 330
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 111,720,760
• 10 Day Avg. Volume: 371,526
• 30 Day Avg. Volume: 178,424
• PEG Ratio: -5.31
• Price to Book (P/B): 4.12
• Price to Sales (P/S): 2.28
• P/FCF Ratio: -83.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £73.00
• Price Target Upside: 8.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: 70.00p ▲(3.70% Upside)

1Spatial's stock score is primarily influenced by strong financial performance and technical indicators, despite concerns over valuation. The high P/E ratio and lack of dividend yield significantly impact the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and successful product adoption, supporting long-term business sustainability.

Financial Structure

A balanced debt-to-equity ratio enhances financial stability, providing flexibility for future investments and growth opportunities.

Gross Profit Margins

Healthy gross profit margins indicate effective cost management, which supports profitability and competitive pricing strategies over time.

Negative Factors

EBIT Margin Decline

Declining EBIT margins suggest rising operational costs or increased investment, potentially impacting profitability if not managed effectively.

Negative Free Cash Flow

Negative free cash flow can strain liquidity, limiting the company's ability to invest in growth or weather economic downturns without external financing.

EPS Growth Decline

A significant decline in EPS growth reflects challenges in maintaining profitability, potentially affecting investor confidence and future earnings potential.

1Spatial Business Overview & Revenue Model

Company Description

1Spatial (SPA) is a leading provider of spatial data management solutions, focusing on the integration, management, and sharing of spatial data across various sectors, including government, transportation, utilities, and telecommunications. The company offers a range of products and services, including software solutions for data quality, data integration, and spatial data analysis, enabling organizations to make informed decisions based on accurate geographic information.

How the Company Makes Money

1Spatial generates revenue primarily through the sale of software licenses, subscription services, and consulting services related to spatial data management. Key revenue streams include the licensing of its proprietary software products, such as the 1Spatial Management Suite, which helps organizations manage their spatial data effectively. Additionally, the company earns income from providing professional services to help clients implement and optimize their spatial data solutions. Strategic partnerships with technology providers and industry leaders further enhance its offerings, allowing 1Spatial to reach a broader market and improve its competitive positioning, thereby contributing to its overall earnings.

1Spatial Financial Statement Overview

Summary

1Spatial demonstrates robust revenue growth and profitability improvements, with a solid balance sheet and effective use of equity capital. However, concerns arise from declining EBIT margins and negative free cash flow in 2025, indicating potential liquidity issues.

Income Statement

1Spatial shows a solid revenue growth trend with total revenue increasing from 2020 to 2025. Gross profit margins remain healthy, demonstrating strong cost management. However, there is a decline in EBIT margin from 2024 to 2025, which could indicate rising operational costs or investment in growth initiatives. Despite fluctuations, net profit margin has improved, showing enhanced profitability.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio, reflecting a balanced approach to leverage. Stockholders' equity has grown steadily, bolstering financial stability. However, the equity ratio has decreased slightly, suggesting increased liabilities relative to assets. Return on Equity (ROE) has seen improvement, indicating effective use of equity capital to generate profits.

Cash Flow

Operating cash flow remains strong, but free cash flow has experienced volatility, especially with a negative free cash flow in 2025. The operating cash flow to net income ratio is healthy, showcasing efficient cash generation. However, the negative free cash flow in 2025 raises concerns about capital expenditure or investment strategies impacting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.79M	33.38M	32.31M	30.00M	27.03M	24.60M
Gross Profit	18.57M	18.54M	17.93M	12.14M	10.51M	9.04M
EBITDA	3.19M	5.03M	2.42M	4.58M	3.86M	2.90M
Net Income	29.00K	167.00K	1.18M	1.06M	383.00K	-1.13M
Balance Sheet
Total Assets	43.20M	41.44M	38.55M	39.62M	35.12M	37.18M
Cash, Cash Equivalents and Short-Term Investments	3.73M	3.63M	4.26M	5.04M	5.62M	7.28M
Total Debt	7.54M	5.97M	4.58M	3.67M	4.12M	5.68M
Total Liabilities	24.80M	22.96M	20.25M	22.27M	19.61M	22.45M
Stockholders Equity	18.39M	18.48M	18.31M	17.83M	15.99M	15.21M
Cash Flow
Free Cash Flow	4.51M	-911.00K	4.32M	1.30M	-74.00K	1.98M
Operating Cash Flow	4.67M	4.14M	4.38M	5.32M	2.54M	4.29M
Investing Cash Flow	-5.56M	-5.51M	-5.36M	-4.02M	-2.61M	-2.31M
Financing Cash Flow	1.53M	769.00K	376.00K	-1.98M	-1.51M	1.07M

1Spatial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SPA, the sentiment is Positive. The current price of 67.5 is above the 20-day moving average (MA) of 50.95, above the 50-day MA of 50.07, and above the 200-day MA of 49.78, indicating a bullish trend. The MACD of 4.89 indicates Negative momentum. The RSI at 89.03 is Negative, neither overbought nor oversold. The STOCH value of 93.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SPA.

1Spatial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRB	70 Outperform	£144.08M	17.84	15.34%	1.71%	3.48%	318.89%
OMG	69 Neutral	£53.28M	-51.91	-1.59%	7.26%	8.00%	-253.45%
IGP	64 Neutral	£75.96M	20.48	23.08%	―	-19.19%	-41.12%
CLBS	62 Neutral	£51.14M	16.37	11.22%	2.49%	-25.63%	-20.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPA	58 Neutral	£75.41M	2,250.00	0.15%	―	5.35%	-97.78%
RM	46 Neutral	£106.61M	-71.90	-3.40%	―	-14.23%	97.27%

1Spatial Corporate Events

1Spatial Secures Major Contract for National Underground Asset Register

1Spatial has secured a major five-year contract as the prime contractor for the National Underground Asset Register (NUAR) Data Transformation and Ingestion Service, in partnership with Ordnance Survey Ltd. This contract, valued at £4.2 million, marks an upgrade from their previous role and underscores 1Spatial’s leadership in geospatial solutions. The NUAR initiative aims to create a comprehensive digital map of underground infrastructure in the UK, expected to significantly enhance efficiency and safety while reducing public disruptions. This win highlights 1Spatial’s strong market position and potential for international expansion, leveraging their technology to transform industries.

1Spatial Increases Share Capital Following Employee Option Exercise

1Spatial plc has announced the issuance of 100,000 ordinary shares following the exercise of employee share options, increasing the total issued share capital to 111,836,152 shares. With 15,399 shares remaining in treasury, the total number of shares carrying voting rights is now 111,820,753, a figure shareholders will use for interest notifications under regulatory rules. This move reflects the company’s ongoing commitment to employee engagement and may impact shareholder calculations regarding their stakes in the company.

1Spatial Increases Share Capital Following Employee Option Exercise

1Spatial plc has announced the issuance of 32,500 ordinary shares following the exercise of employee share options, increasing its total issued share capital to 111,736,152 ordinary shares. With 15,399 shares held in treasury, the total number of shares carrying voting rights is now 111,720,753. This update is significant for shareholders as it affects the calculations for notifying changes in their interest in the company under the Disclosure Guidance and Transparency Rules.

1Spatial Reports Strong Revenue Growth and Strategic Contract Wins in H1 2025

1Spatial reported a 9% increase in revenue to £17.7 million for the first half of 2025, driven by a 20% rise in recurring revenue and a significant boost in SaaS and Term Licences revenues. The company secured key multi-year contracts, including a US$1.7 million deal with the California Department of Transportation and a £1 million contract with UK Power Networks. Despite a slight decrease in EBITDA margin, the company’s robust order book and strategic expansions in the UK and US provide confidence in meeting full-year expectations. The focus remains on accelerating SaaS adoption and expanding in the US market.

1Spatial Expands Share Capital Following Employee Option Exercises

1Spatial plc announced the issuance of 292,073 ordinary shares following the exercise of employee share options, increasing its total issued share capital to 111,703,652 shares. This change affects the voting rights within the company, with 111,688,253 shares now carrying voting rights, a key figure for shareholders monitoring their interests under regulatory guidelines.

1Spatial Secures £1 Million Contract with UK Power Networks

1Spatial has signed a £1 million SaaS contract with UK Power Networks to implement its 1Streetworks platform over the next 15 months, with an option for a one-year extension. This contract aims to automate and enhance the efficiency of traffic management plans, potentially reducing road closures by 39% and improving customer service metrics. The agreement signifies a major milestone for 1Spatial, showcasing the value of its solutions and potentially setting a precedent for similar implementations across other utility sectors.

1Spatial to Announce Interim Results and Host Presentations

1Spatial has announced that it will release its interim results for the six months ended 31 July 2025 on 13 October 2025. The company will host an in-person analyst presentation and a virtual investor presentation to discuss these results, reflecting its commitment to transparency and engagement with stakeholders.

1Spatial Secures Major US Enterprise Agreement with Caltrans

1Spatial has signed a US$1.7 million annually renewing Enterprise Agreement with the California Department of Transportation (Caltrans), consolidating multiple software licenses into a single agreement. This partnership, which has grown over six years, highlights the strategic importance of 1Spatial’s technology in data governance for Caltrans, with potential replication across other U.S. Departments of Transportation.

1Spatial Secures Major US Enterprise Contract with Caltrans

1Spatial has signed a US$1.7 million annually renewing Enterprise Agreement with the California Department of Transportation (Caltrans), consolidating multiple software licenses into a single agreement. This move simplifies procurement and deployment, reflecting the growing strategic importance of 1Spatial’s technology in supporting Caltrans’ data governance initiatives. The agreement, which includes a 50% increase in license revenue, is expected to enhance 1Spatial’s industry positioning and offers expansion opportunities with other Departments of Transport in the US.