Space42 Achieves Strong Q1 2025 Results Advancing Strategy

Space42 PLC, the UAE-headquartered SpaceTech innovator that blends artificial intelligence, satellite communications, and geospatial analytics, has announced its pro forma consolidated financial results for the first quarter of 2025. Listed on the Abu Dhabi Securities Exchange under the symbol SPACE42 (ISIN: AEE01122B228), the company continues to position itself as a global player in the AI-powered space industry.

Performance Since Launch

Since its debut in October 2024, Space42 has maintained steady progress across its four core growth strategies, building a solid operational and financial base for global expansion. During Q1 2025, the company reported revenue of USD 115 million, a 13% decline from the same period last year. This was attributed to timing shifts in milestone recognition within Bayanat Smart Solutions, which is currently transitioning to a more programmatic market model. Nonetheless, profitability remained robust, with a normalized EBITDA margin of 53% and a normalized net profit of USD 30 million, matching Q1 2024. The company also improved its normalized net profit margin by three percentage points, reaching 26%.

Strong Liquidity and Backlog

As of the end of Q1 2025, Space42 held USD 895 million in cash and short-term deposits. It also boasts a strong pipeline of nearly USD 7 billion in contracted future revenues. These figures underscore the company's readiness to scale operations and seize emerging opportunities in the space technology sector.

Karim Sabbagh, Managing Director of Space42, commented, "We entered 2025 with a clear strategy and a platform built to scale. This quarter reinforced our discipline on margins, the momentum across our four strategic pillars and our focus on long-cycle delivery. We launched new assets in space, expanded coverage, and advanced programs that strengthen sovereign capabilities and position us to scale internationally. We are executing a model anchored in differentiated infrastructure and downstream applications in satellite communications and AI-enabled geospatial analytics. Our focus is on programmatic and long-term engagements with our key customers. This go-to-market approach is well established within Yahsat Space Services, and the appropriate transformation is underway within Bayanat Smart Solutions. Our strategy is demonstrated by the dual-use satellite communication and earth observation platforms we are building and the differentiated outcomes we are delivering across national and international markets, with the latter segment to grow in relevance over time. That is how we create enduring value."

Strategic Pillar 1: Becoming the Premier Source for Geospatial Data

In Q1, Space42 advanced its capabilities in Earth observation by successfully launching the Foresight-1 and Foresight-2 satellites, laying the groundwork for a scalable constellation with improved revisit times. Its Synthetic Aperture Radar (SAR) manufacturing facility remains on schedule, with production slated to begin in the second half of 2025. This initiative will support the in-country development of high-resolution satellites including Foresight-3, -4, and -5.

Additionally, the High Altitude Platform Stations (HAPS) site in Abu Dhabi is expected to go live by June 2025. This facility—pioneering in the region—will produce over 20 unmanned aircraft vehicles annually for use in civil, environmental, and defense sectors.

Strategic Pillar 2: Leading in Geospatial Intelligence AI Platforms

Space42 continues to scale its GIQ platform, which delivers AI-powered, real-time geospatial intelligence for both civil and defense applications. The platform supports rapid and informed decision-making across diverse sectors.

To further this strategy, the company signed a memorandum of understanding with FADA and EDGE to develop a national geospatial ecosystem. The initiative, valued at over USD 100 million, aims to drive innovation in surveillance, environmental monitoring, and secure mobility.

Strategic Pillar 3: Advancing Non-Terrestrial Connectivity (NTN)

Space42 achieved significant progress in non-terrestrial communications with the successful launch of Thuraya-4, which is now in orbit and set to enter commercial service in the second half of 2025. The satellite is central to a new generation of mobile services, offering broader coverage, higher data speeds, and improved capabilities.

Collaborating with Viasat, the company has also agreed to co-develop a multi-orbit, standards-based 5G NTN open architecture. This system is intended to support global scalability for direct-to-device (D2D) and mobile satellite services.

Other Q1 highlights include the rollout of the IP Neo broadband terminal, designed for underserved sectors such as maritime, logistics, and critical infrastructure, as well as the launch of the Thuraya One smartphone—a device that merges satellite and terrestrial connectivity into a single platform.

Strategic Pillar 4: Strengthening Secure Connectivity

Space42 is making steady progress with its Al Yah 4 and Al Yah 5 satellite programs. These assets are currently in the testing phase, with launches planned for 2027 and 2028. Once operational, they will enhance secure national communications for both defense and civil applications.

Additionally, Space42 rapidly reestablished Thuraya-3 services in key markets by reallocating redundant capacity—an example of the company's responsiveness and commitment to service continuity.

Summary of Key Financials

Space42’s financial performance for Q1 2025 reflects disciplined growth and a focus on long-term value creation:

Revenue: USD 115 million (13% decrease year-on-year)

Normalized Net Profit: USD 30 million (unchanged from Q1 2024), with a 3-percentage point increase in margin to 26%

Normalized EBITDA: USD 61 million (14% decline year-on-year)

Capital Expenditure (Cash): USD 74 million

Cash and Short-Term Deposits: USD 895 million

Net Debt: Negative USD 488 million (indicating net cash)

Net Leverage Ratio: -1.8x

Contracted Future Revenue: Approximately USD 7 billion