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Spire Global (SPIR)
NYSE:SPIR

Spire Global (SPIR) AI Stock Analysis

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Spire Global

(NYSE:SPIR)

Rating:51Neutral
Price Target:
$12.50
▲(1.46%Upside)
The overall stock score of 51 reflects significant financial challenges, including high leverage and negative cash flow, despite some positive technical indicators and strategic achievements from recent corporate actions. The company's ongoing operational losses and revenue decline are major concerns, but steps towards financial stability offer a cautious outlook.
Positive Factors
Financial Position
The expected completion of the Kpler deal would significantly boost Spire's cash reserves, allowing them to pay off existing debt.
Government Contracts
Spire Global was selected by the US Space Force for a contract, which could allow the company to grow its business with this customer.
Revenue Growth
Spire Global's revenue growth in the second half of the year is expected to accelerate due to recent satellite launches.
Negative Factors
Cash Flow
The company experienced a free cash flow burn of approximately $45 million during the year, despite a 16% improvement year-over-year.
Equity Dilution
The securities purchase agreement involves selling shares at approximately 22% below the previous closing share price.
Operating Expenses
Spire Global's operating expenses increased significantly due to legal and accounting fees, impacting financial performance.

Spire Global (SPIR) vs. SPDR S&P 500 ETF (SPY)

Spire Global Business Overview & Revenue Model

Company DescriptionSpire Global, Inc. (SPIR) is a leading provider of space-based data, analytics, and services, leveraging its constellation of nanosatellites to deliver insights across various sectors. The company operates primarily in the maritime, aviation, and weather sectors, offering data solutions that enhance decision-making processes for clients worldwide. Spire Global's core services include tracking and monitoring of global ship movements, aircraft positions, and atmospheric conditions, providing critical information to businesses and organizations.
How the Company Makes MoneySpire Global makes money through a subscription-based revenue model, where customers pay for access to its data and analytics services. The company's key revenue streams include data subscriptions, analytics solutions, and custom data services tailored to specific industry needs. Significant partnerships with government agencies, commercial enterprises, and research institutions also contribute to its earnings, as these collaborations often involve long-term contracts and recurring revenue. Additionally, Spire Global monetizes its infrastructure by offering satellite and data services to third parties, further diversifying its income sources.

Spire Global Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q1-2025)
|
% Change Since: 18.35%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call showcased Spire's strategic achievements, such as significant contract awards and strong government partnerships, as well as a strengthened financial position following a key business sale. However, these positives were counterbalanced by a decline in revenue and increased operating losses, alongside workforce reductions and potential challenges in NOAA funding. Despite the challenges, the company's strategic direction and financial stability suggest a cautiously optimistic outlook.
Q1-2025 Updates
Positive Updates
Record Contract Award
Spire secured a $72 million CAD contract from the Canadian Space Agency for a dedicated satellite constellation for wildfire monitoring.
Strong Government Partnerships
The U.S. Administration's executive order has opened new opportunities, alongside increased defense spending of 13% for fiscal year 2026.
Successful Maritime Business Sale
Finalization of the maritime business sale, eliminating debt and strengthening the balance sheet by over $100 million.
Satellite Launches and Revenue Growth
Approximately 20 satellites were launched in Q1, with half supporting space services customers, indicating revenue growth in the second half of 2025.
Cash Position and Financial Stability
Company ended April with $136 million in cash and zero debt, with expectations to achieve positive operating cash flow in the second half of 2025.
Negative Updates
Decline in Revenue
Q1 2025 revenue was $23.9 million, down from $34.8 million in Q1 2024, partly due to a $9.6 million revenue from a single obligation in 2024.
Increased Operating Loss
Non-GAAP operating loss increased to $11.5 million in Q1 2025 from $7.1 million in Q1 2024.
Challenges in NOAA Funding
Potential impacts from NOAA organizational changes and funding cuts, although expectations are for continued commercial data procurements.
Workforce Reductions
Spire reduced headcount to approximately 380 employees from 450 at the end of 2024, and announced office closures in San Francisco and Singapore.
Company Guidance
During the call, Spire Global's leadership provided detailed guidance for fiscal year 2025, highlighting several key metrics. The company reported a first-quarter GAAP revenue of $23.9 million, representing a 10% sequential growth from Q4 2024, despite a year-over-year decrease from $34.8 million in Q1 2024. The non-GAAP operating loss stood at $11.5 million, with an adjusted EBITDA of negative $7.9 million. Expecting revenue for the full year to range between $85 million and $95 million, Spire anticipates a significant growth in the second half, driven by new satellite deployments. The company also projected achieving breakeven to positive operating cash flow in the latter part of the year, aiming to end 2025 with over $100 million in cash and equivalents. Looking ahead, Spire maintains a 20% revenue growth target for 2026, with plans to continue enhancing operational efficiencies and expanding its market presence.

Spire Global Financial Statement Overview

Summary
Spire Global exhibits strong revenue growth but faces significant challenges with profitability and financial stability. High operating costs and consistent losses negatively impact margins, while the balance sheet shows concerning levels of debt and negative equity. Cash flow challenges persist, with some recent improvements. The company needs to focus on profitability and financial health to mitigate risks.
Income Statement
45
Neutral
Spire Global has shown consistent revenue growth over the years, with revenue increasing from $18.5 million in 2019 to $110.5 million in 2024. However, the company is facing significant profitability challenges, as indicated by negative EBIT and net income margins. The net profit margin is deeply negative, reflecting substantial losses, and the gross profit margin has declined from previous years. This suggests high operating costs and a struggle to achieve profitability.
Balance Sheet
30
Negative
The company has a high debt-to-equity ratio due to negative stockholders' equity, which indicates financial instability and potential solvency issues. Total liabilities have consistently exceeded total assets, which is a significant risk factor. The equity ratio is negative, further highlighting that liabilities surpass equity, posing a concern for financial health. Return on equity is also negative due to persistent losses.
Cash Flow
40
Negative
Spire Global has faced challenges in maintaining positive cash flows. Operating and free cash flows have been negative, indicating cash burn and reliance on external financing. There have been improvements in reducing free cash flow deficits recently, but the overall cash flow situation remains concerning. The free cash flow to net income ratio is negative, reflecting ongoing losses.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
110.45M105.70M80.27M43.38M28.49M
Gross Profit
39.89M63.27M39.94M24.66M18.20M
EBIT
-68.73M-44.65M-68.55M-67.83M-25.34M
EBITDA
-55.73M-23.69M-54.45M-17.00M-19.92M
Net Income Common Stockholders
-102.82M-63.96M-89.41M-19.31M-32.50M
Balance SheetCash, Cash Equivalents and Short-Term Investments
19.21M40.87M70.28M109.26M15.57M
Total Assets
193.57M246.82M256.51M290.19M44.42M
Total Debt
111.41M130.70M111.62M51.12M75.28M
Net Debt
92.21M101.55M64.43M-58.13M59.70M
Total Liabilities
205.26M176.29M146.39M101.33M93.16M
Stockholders Equity
-11.69M70.54M110.12M188.86M-48.74M
Cash FlowFree Cash Flow
-45.03M-53.66M-66.73M-73.56M-25.19M
Operating Cash Flow
-18.45M-23.62M-47.82M-57.97M-14.77M
Investing Cash Flow
-14.23M-17.65M-41.83M-120.85M-10.41M
Financing Cash Flow
19.00M23.91M26.37M270.53M16.62M

Spire Global Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.32
Price Trends
50DMA
9.81
Positive
100DMA
11.57
Positive
200DMA
11.51
Positive
Market Momentum
MACD
0.39
Negative
RSI
65.20
Neutral
STOCH
81.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPIR, the sentiment is Positive. The current price of 12.32 is above the 20-day moving average (MA) of 11.01, above the 50-day MA of 9.81, and above the 200-day MA of 11.51, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 65.20 is Neutral, neither overbought nor oversold. The STOCH value of 81.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPIR.

Spire Global Risk Analysis

Spire Global disclosed 67 risk factors in its most recent earnings report. Spire Global reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Spire Global Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
LZLZ
75
Outperform
$1.66B54.5517.09%3.25%56.17%
CBCBZ
74
Outperform
$4.03B49.376.25%32.27%-40.50%
66
Neutral
$4.50B12.295.40%248.66%4.13%-12.33%
FAFA
58
Neutral
$3.16B549.40-13.59%37.97%-499.29%
56
Neutral
$368.34M7.73-2.09%65.22%-133.47%
51
Neutral
$372.76M-337.63%-11.82%-2.53%
49
Neutral
$469.33M12.206.47%-4.32%-22.48%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SPIR
Spire Global
11.83
2.39
25.32%
ACTG
Acacia Research
3.82
-1.51
-28.33%
CBZ
CBIZ
71.04
-4.60
-6.08%
KODK
Kodak
5.86
-0.08
-1.35%
FA
First Advantage
18.55
1.71
10.15%
LZ
LegalZoom
9.35
0.89
10.52%

Spire Global Corporate Events

Executive/Board ChangesShareholder Meetings
Spire Global Holds Annual Stockholders Meeting
Neutral
Jun 9, 2025

On June 4, 2025, Spire Global, Inc. held its annual meeting of stockholders, where key proposals were voted on. The stockholders elected Peter Platzer, Stephen Messer, and Joan Amble as Class I directors to serve until the 2028 annual meeting. Additionally, the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified. These decisions are expected to influence the company’s strategic direction and financial oversight in the coming years.

The most recent analyst rating on (SPIR) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Spire Global stock, see the SPIR Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Spire Global Reports Strong Q1 2025 Financial Results
Positive
May 14, 2025

On May 14, 2025, Spire Global announced its first quarter 2025 results, reporting a revenue of $23.9 million and a 5% improvement in cash flow used in operations year-over-year. The company retired all its debt by the end of April 2025 and expects to maintain over $100 million in cash and equivalents by the year’s end. Spire secured its largest contract to date with the Canadian government to monitor wildfires and expanded its Canadian facility to support this project. Additionally, Spire achieved a significant milestone by establishing a two-way optical link between satellites, enhancing data transmission capabilities. The company also launched advanced AI weather models and secured a contract with Concirrus for aviation data, further solidifying its position in the space-based data industry.

The most recent analyst rating on (SPIR) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Spire Global stock, see the SPIR Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Spire Global Sells Maritime Business to Kpler
Positive
Apr 25, 2025

On April 25, 2025, Spire Global completed the sale of its maritime business to Kpler for approximately $233.5 million. The transaction included a $7.5 million agreement for transitional services. The proceeds from the sale were used to eliminate all outstanding debt, with the remaining funds earmarked for investment in growth opportunities. This strategic move is expected to enhance Spire’s financial position and allow the company to focus on its core space-based data and analytics services. The sale also involved a settlement agreement with L3Harris, resolving previous disputes and contributing to the financial adjustments of the transaction.

Executive/Board Changes
Spire Global Announces CFO Transition Effective April 2025
Neutral
Apr 4, 2025

Spire Global announced a change in its executive team, with Alison Engel set to replace Thomas Krywe as the Chief Financial Officer, principal financial officer, and principal accounting officer, effective April 1, 2025. However, the transition was delayed to the business day following the filing of an amendment on March 31, 2025, and the grant date for Engel’s restricted stock units was also postponed to this new effective date.

Business Operations and StrategyFinancial Disclosures
Spire Global Reports Strong 2024 Financial Results
Positive
Mar 31, 2025

On March 31, 2025, Spire Global announced its financial results for the fourth quarter and full year of 2024, reporting a 13% year-over-year revenue growth to $110.5 million. The company also highlighted a 49% improvement in cash flows used in operations and a 16% improvement in free cash flow, reflecting progress towards positive free cash flow. Spire emphasized its strategic focus on operational efficiency and productivity to enhance market responsiveness and increase margins. Additionally, Spire announced a mission with Mission Control to explore AI in space and a partnership with LatConnect60 to improve sustainable agriculture practices using its satellite data.

Private Placements and FinancingBusiness Operations and Strategy
Spire Global Secures $40M in Private Placement
Positive
Mar 17, 2025

On March 12, 2025, Spire Global, Inc. entered into a securities purchase agreement for a private placement of Class A common stock and pre-funded warrants, raising approximately $40 million. The private placement, which closed on March 14, 2025, aims to support the company’s working capital and general corporate purposes. The transaction, exempt from public offering registration, involves a lock-up agreement restricting stock sales by executives and directors for 90 days post-closing. This strategic financial move is expected to bolster Spire’s operational capabilities and market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.