Q3 2025 Spire Global Inc Earnings Call

December 17, 2025

Speaker #1: A question and answer will session follow the formal presentation . If anyone should operator assistance during the conference , please press Zero on your telephone require keypad .

Operator: Greetings and welcome to the Spire Global Q3 2025 results call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Ben Hackman, Head of Investor Relations. Thank you. You may begin.

Speaker #1: A reminder: this being a conference, it is recorded. I would now like to call over to your host, Ben Hackman, to turn to Investor Relations.

Speaker #1: Thank you . You may begin .

Speaker #2: Thank you . Hello , everyone , and thank you for joining Spire's third quarter 2020 Earnings Our call . earnings release and press related filings are posted on the company's Conference IR website .

Speaker #2: replay of A call will also be made available today's With me on the call today is Theresa Condor and Ali CEO . As a reminder , our commentary today will include CFO non-GAAP items , reconciliations between our GAAP and non-GAAP results , as well guidance as our found in our earnings press release , which can be found on our can be IR website .

Ben Hackman: Thank you. Hello, everyone, and thank you for joining Spire's Q3 2025 earnings conference call. Our earnings press release and related SEC filings are posted on the company's IR website. A replay of today's call will also be made available. With me on the call today is Theresa Condor, CEO, and Alison Engel, CFO. As a reminder, our commentary today will include non-GAAP items. Reconciliations between our GAAP and non-GAAP results, as well as our guidance, can be found in our earnings press release, which can be found on our IR website. Some of our comments today contain forward-looking statements that are subject to risks, uncertainties, and assumptions. In particular, our expectations around our future results of operations and financial condition are uncertain and subject to change.

Speaker #2: Some of our comments today contain forward looking statements that are subject to risks , uncertainties and assumptions . In expectations future results of around our operations and financial condition are uncertain and subject to change .

Speaker #2: Should any of these expectations fail to, or should our assumptions prove to be incorrect, actual company results could materially differ from or fail to materialize, or statements.

Speaker #2: A description of these risks, uncertainties, and looking assumptions and other factors that could affect our financial results is included in our SEC filings.

Ben Hackman: Should any of these expectations fail to materialize, or should our assumptions prove to be incorrect, actual company results could differ materially from these forward-looking statements. A description of these risks, uncertainties, and assumptions, and other factors that could affect our financial results, is included in our SEC filings. With that, let me hand the call over to Theresa.

Should any of these expectations fail to materialize, or should our assumptions prove to be incorrect, actual company results could differ materially from these forward-looking statements. A description of these risks, uncertainties, and assumptions, and other factors that could affect our financial results, is included in our SEC filings. With that, let me hand the call over to Theresa.

Speaker #2: With that, let me hand the call over to Theresa.

Speaker #3: For more than a decade, Spire has been a steadfast champion of safety and security. We protect businesses and people by delivering critical weather, intelligence, and aviation insights that spot potential hazards before they become navigation problems.

Theresa Condor: For more than a decade, Spire has been a steadfast champion of safety and security. We protect businesses and people by delivering critical weather intelligence and aviation insights that spot potential navigation hazards before they become problems. We empower nations with radio frequency data, turning raw signals into actionable intelligence. Through our proven, scalable space infrastructure, Spire provides global, invisible intelligence from orbit, capturing RF signals, atmospheric conditions, and operational behavior data. This continuous space-based awareness provides hundreds of organizations and governments a real-time view of activity across Earth's environment, operations, and infrastructure, enabling them to act faster, act safer, and act with greater confidence. Today, Spire operates a satellite constellation of over 100 payloads. Our antennas cover every spot on Earth approximately every 12 minutes. We serve data and analytics applications to hundreds of customers across 45 countries and collect millions of RF signals and atmospheric measurements every day.

Speaker #3: We empower nations with radio frequency data , turning signals into raw actionable intelligence Through our proven , . scalable space infrastructure . Spire provides invisible global intelligence orbit from RF conditions , and operational behavior .

Speaker #3: Data . signals , capturing space based awareness provides hundreds of organizations and continuous governments a real time This view of Earth's across activity environment , operations , and infrastructure , enabling them to act faster .

Speaker #3: Act safer, and act with greater confidence. Today, Spire, a satellite, operates a constellation of over 100 payloads. Our antennas cover every spot on Earth approximately every 12 minutes.

Speaker #3: We serve and provide data analytics applications to hundreds of customers across 45 countries and collect millions of RF signals and atmospheric measurements every day.

Speaker #3: Spire closed the third quarter on the back of commercial and government contract wins, sizable with triple-digit growth on multiple repeat contract awards.

Speaker #3: In our core areas of weather and security awards reflect . demand , translating into These signed long term programs We head . into 2026 buoyed by unmistakable market opportunity , even as we have navigated recent timing variability inherent in government procurement and delivery .

Theresa Condor: Spire closed the Q3 on the back of sizable commercial and government contract wins, with triple-digit growth on multiple repeat contract awards in our core areas of weather and security. These awards reflect demand translating into signed long-term programs. We head into 2026 buoyed by unmistakable market opportunity, even as we have navigated recent timing variability inherent in government procurement and delivery. Heightened security imperatives, larger budget allocations, accelerated procurement cycles, and clear expectations for commercial partnerships have created a fertile environment for a well-established company like Spire, one that can deliver operational capability today while iterating rapidly toward tomorrow's needs. Our 2025 satellite manufacturing ramp-up proved we can scale with confidence. Satellite manufacturing throughput doubled per year while remaining flat headcount. Our on-orbit data production is expected to increase tenfold for crucial RFGL products and threefold in our daily RO profiles.

Spire closed the Q3 on the back of sizable commercial and government contract wins, with triple-digit growth on multiple repeat contract awards in our core areas of weather and security. These awards reflect demand translating into signed long-term programs. We head into 2026 buoyed by unmistakable market opportunity, even as we have navigated recent timing variability inherent in government procurement and delivery. Heightened security imperatives, larger budget allocations, accelerated procurement cycles, and clear expectations for commercial partnerships have created a fertile environment for a well-established company like Spire, one that can deliver operational capability today while iterating rapidly toward tomorrow's needs. Our 2025 satellite manufacturing ramp-up proved we can scale with confidence. Satellite manufacturing throughput doubled per year while remaining flat headcount. Our on-orbit data production is expected to increase tenfold for crucial RFGL products and threefold in our daily RO profiles.

Speaker #3: Heightened security imperatives , larger budget allocations , accelerated procurement cycles , and clear expectations for commercial partnerships have fertile environment for a created a company like spire , one that can deliver operational capability today .

Speaker #3: While rapidly iterating toward tomorrow's needs, our 2025 satellite ramp-up proved manufacturing we can scale with confidence. Satellite manufacturing throughput doubled per year while remaining flat headcount.

Speaker #3: Our on orbit data production is expected to increase ten fold for crucial products and RFG threefold in our row profiles . This step change in capacity cements Spire's role as a daily true dual use provider solution , driven by European , especially demand .

Theresa Condor: This step change in capacity cements Spire's role as a true dual-use solution provider. Driven by European, especially German, demand, we have cost-effectively installed a world-class satellite manufacturing facility in Germany, which will provide us with backup resilience and additional manufacturing capacity of up to 100 satellites per year once fully qualified and operational in Q1. We have selected KPMG as our new audit partner, and we are confident that Spire is positioned to operate as a regular reporting public company going forward. In September, Spire secured its largest radio occultation contract from NOAA, an award three times the size of last year's in annual sounding volume and a greater than 40% improvement in price per sounding versus historical benchmarks. The agency also awarded Spire a contract for ocean surface winds derived from our GNSS-R data supporting operational forecasting missions. Across Europe, demand for our weather data suite remained robust.

This step change in capacity cements Spire's role as a true dual-use solution provider. Driven by European, especially German, demand, we have cost-effectively installed a world-class satellite manufacturing facility in Germany, which will provide us with backup resilience and additional manufacturing capacity of up to 100 satellites per year once fully qualified and operational in Q1. We have selected KPMG as our new audit partner, and we are confident that Spire is positioned to operate as a regular reporting public company going forward. In September, Spire secured its largest radio occultation contract from NOAA, an award three times the size of last year's in annual sounding volume and a greater than 40% improvement in price per sounding versus historical benchmarks. The agency also awarded Spire a contract for ocean surface winds derived from our GNSS-R data supporting operational forecasting missions. Across Europe, demand for our weather data suite remained robust.

Speaker #3: We have German , cost effectively installed a world class satellite manufacturing facility in Germany , which will us with backup additional manufacturing provide capacity of up , resilience and per year .

Speaker #3: Once fully 100 satellites qualified and operational in Q1, we selected as our new, and we are confident that KPMG Spire is positioned to audit, operate as a partner, regular public company, reporting going forward.

Speaker #3: In September, Spire secured its largest radio contract from Operation NOAA. The award is three times the size of last year's, with an annual sounding volume and a greater than 40% improvement in price per sounding versus historical benchmarks.

Speaker #3: The agency also awarded Spire a contract for ocean surface winds derived from Nser data, supporting operational forecasting missions across Europe. Demand for our data remained weather-robust.

Speaker #3: We renewed suite occultation agreement with EUMETSAT, sold NSER data to the European Agency, Space, and sold data to a leading European weather agency in support of improved forecast accuracy as the region advances its.

Theresa Condor: We renewed our radio occultation agreement with EUMETSAT, sold GNSS-R data to the European Space Agency, and sold data to a leading European weather agency in support of improved forecast accuracy. As the region advances its process of catching up with the US in terms of commercial data use, Spire is uniquely positioned to continue as the key commercial partner based on its strong European operations. Looking ahead to 2026, we anticipate an even deeper partnership with NOAA across our product categories, buoyed by the agency's ongoing dialogue with commercial providers about their expanding strategic role in satellite-based weather observations. This expectation is supported by the overarching directive of the current US administration toward more commercial partnerships and less government ownership. Spire's momentum is further supported by the upcoming launch of our microwave sounding satellite next month, which addresses a multi-billion-dollar global atmospheric sounding need.

We renewed our radio occultation agreement with EUMETSAT, sold GNSS-R data to the European Space Agency, and sold data to a leading European weather agency in support of improved forecast accuracy. As the region advances its process of catching up with the U.S. in terms of commercial data use, Spire is uniquely positioned to continue as the key commercial partner based on its strong European operations. Looking ahead to 2026, we anticipate an even deeper partnership with NOAA across our product categories, buoyed by the agency's ongoing dialogue with commercial providers about their expanding strategic role in satellite-based weather observations. This expectation is supported by the overarching directive of the current U.S. administration toward more commercial partnerships and less government ownership. Spire's momentum is further supported by the upcoming launch of our microwave sounding satellite next month, which addresses a multi-billion-dollar global atmospheric sounding need.

Speaker #3: Catching up with the US in terms of commercial data use, Spire is positioned to continue as the key commercial partner, based on its strong European operations.

Speaker #3: Looking ahead to 2026 , we anticipate an even deeper partnership with NOAA across our product , buoyed by the categories agency's ongoing dialogue with providers commercial about their expanding strategic role in satellite based weather observations .

Speaker #3: This expectation is supported by the overarching directive of the U.S. current administration toward more commercial and less government ownership partnerships. Buyers' momentum is further supported by the upcoming launch of our microwave sounding satellite next month, which addresses a global multibillion-dollar atmospheric sounding need.

Speaker #3: Microwave sounders are among the most impactful satellite observations for forecasting models worldwide, especially because they can see inside clouds, and temperature and moisture provide profiles crucial for accurate forecasting.

Theresa Condor: Microwave sounders are among the most impactful satellite observations for forecasting models worldwide, especially because they can see inside clouds and provide temperature and moisture profiles crucial for accurate forecasting. Microwave soundings currently provide up to 40% of forecast accuracy benefit and are used by all global forecasting agencies around the world. However, the combination of legacy government instrument retirements, administrative changes in data sharing, and delays in new instruments have sparked global concerns about the consistency and completeness of microwave data sets, particularly for critical applications such as hurricane intensity monitoring. This further opens the door to efficient and effective private sector participation in the multi-billion-dollar global observing system. As geopolitical dynamics evolve, weather intelligence is also gaining heightened relevance for defense. Germany's recently published space security strategy underscores the strategic value of weather observations alongside traditional intelligence, surveillance, and reconnaissance domains.

Microwave sounders are among the most impactful satellite observations for forecasting models worldwide, especially because they can see inside clouds and provide temperature and moisture profiles crucial for accurate forecasting. Microwave soundings currently provide up to 40% of forecast accuracy benefit and are used by all global forecasting agencies around the world. However, the combination of legacy government instrument retirements, administrative changes in data sharing, and delays in new instruments have sparked global concerns about the consistency and completeness of microwave data sets, particularly for critical applications such as hurricane intensity monitoring. This further opens the door to efficient and effective private sector participation in the multi-billion-dollar global observing system. As geopolitical dynamics evolve, weather intelligence is also gaining heightened relevance for defense. Germany's recently published space security strategy underscores the strategic value of weather observations alongside traditional intelligence, surveillance, and reconnaissance domains.

Speaker #3: Microwave soundings currently provide up to 40% of forecast accuracy and are used, to benefit, by all global forecasting agencies around the world.

Speaker #3: However, the combination of legacy government instrument retirements, administrative changes in data and sharing, and new delays in global instruments have sparked concerns over the completeness and consistency of microwave datasets, particularly for critical applications such as hurricane intensity.

Speaker #3: This further monitoring opens the door to efficient and effective private sector participation in the multibillion-dollar global observing system. As geopolitical dynamics evolve, weather intelligence also has heightened relevance for defense.

Speaker #3: Germany's recently published Space Security Strategy underscores the strategic value of weather observations alongside traditional intelligence, surveillance, and reconnaissance domains, demonstrating this trend.

Speaker #3: Spire recently won a contract award for high-resolution weather insights to support military applications, further illustrating the link between global security and citizen safety.

Theresa Condor: Demonstrating this trend, Spire recently won a contract award for high-resolution weather insights to support military applications. Further illustrating the link between global security and citizen safety, Spire signed a contract to deliver soil moisture data across Ethiopia's Somali region, covering hundreds of thousands of square kilometers in partnership with the International Organization for Migration. We have also won a coveted contract for high-resolution soil moisture insights from a brand name commercial smart ag customer in the US. Spire's expanding partnership with Deloitte and the accompanying contract to field multiple satellite clusters equipped with Deloitte's Silent Shield Cyber Defense Suite underscores the strategic relevance of our space services platform. While revenue recognition extends beyond 2025, satellite manufacturing, operational deployment, and backlog conversion are proceeding exactly as planned.

Demonstrating this trend, Spire recently won a contract award for high-resolution weather insights to support military applications. Further illustrating the link between global security and citizen safety, Spire signed a contract to deliver soil moisture data across Ethiopia's Somali region, covering hundreds of thousands of square kilometers in partnership with the International Organization for Migration. We have also won a coveted contract for high-resolution soil moisture insights from a brand name commercial smart ag customer in the U.S. Spire's expanding partnership with Deloitte and the accompanying contract to field multiple satellite clusters equipped with Deloitte's Silent Shield Cyber Defense Suite underscores the strategic relevance of our space services platform. While revenue recognition extends beyond 2025, satellite manufacturing, operational deployment, and backlog conversion are proceeding exactly as planned.

Speaker #3: Spire signed a contract to deliver soil moisture data across Ethiopia's Somali region, covering hundreds of thousands of square kilometers, in partnership with the International Organization for Migration. They have also won.

Speaker #3: A coveted contract for high-resolution soil moisture insights from a name brand commercial Smart AG customer in the US. Spire's expanding partnership with Deloitte and the accompanying contract field multiple to clusters with equipped satellites with Deloitte's Silent Shield Cyber Defense Suite underscores the strategic relevance of We services our platform.

Speaker #3: While revenue recognition space extends beyond 2025 , satellite manufacturing , operational deployment and backlog conversion are proceeding exactly as planned . The program contributes to the company's total deferred revenue backlog of 200 million , over representing multiple years of contracted activity and reinforcing the long term financial strength of the business .

Theresa Condor: The program contributes to the company's total deferred revenue backlog of over $200 million, representing multiple years of contracted activity and reinforcing the long-term financial strength of the business. It is also another demonstration of our ability to secure high-profile awards that amplify our go-to-market reach within the US federal ecosystem. Spire was recently selected as an awardee on the US government Missile Defense Agency's multi-award Shield IDIQ contract, with a shared ceiling of $151 billion. This award positions us to compete for task orders under the Golden Dome Initiative, a US missile defense effort expected to award over tens of billions of dollars per year over the next decade. Winning in this highly contested selection process confirms our role as an industrial-based partner capable of delivering defense-grade space-based data, RF intelligence, and digital engineering expertise for today and tomorrow's national security requirements.

The program contributes to the company's total deferred revenue backlog of over $200 million, representing multiple years of contracted activity and reinforcing the long-term financial strength of the business. It is also another demonstration of our ability to secure high-profile awards that amplify our go-to-market reach within the U.S. federal ecosystem. Spire was recently selected as an awardee on the U.S. government Missile Defense Agency's multi-award Shield IDIQ contract, with a shared ceiling of $151 billion. This award positions us to compete for task orders under the Golden Dome Initiative, a U.S. missile defense effort expected to award over tens of billions of dollars per year over the next decade. Winning in this highly contested selection process confirms our role as an industrial-based partner capable of delivering defense-grade space-based data, RF intelligence, and digital engineering expertise for today and tomorrow's national security requirements.

Speaker #3: It is also another demonstration of our ability to profile awards that amplify our go-to-market, secure high reach within the US federal ecosystem.

Speaker #3: Spire was recently selected as an awardee on the US Government Missile Defense Agency's Multi-Shield IDIQ, with an award contract ceiling of $151 billion.

Speaker #3: This award positions us to compete for task orders under the Golden Dome Initiative, a U.S. missile defense effort expected to award over tens of billions of dollars per year over the next decade.

Speaker #3: this highly Winning in contested selection process confirms our role as an based capable of industrial delivering defense grade , space based data partner , RF intelligence and digital engineering expertise for today and national security requirements .

Speaker #3: The Secretary of War's rapid procurement guidelines explicitly reward innovative firms that can meet capability needs — today. Our Boulder-based manufacturing facility and all-U.S. workforce provide the domestic footprint and security posture required to respond quickly.

Theresa Condor: The Secretary of War's rapid procurement guidelines explicitly reward innovative firms that can meet capability needs today. Our Boulder-based manufacturing facility and all US workforce provide the domestic footprint and security posture required to respond quickly. While the US government shutdown shifted a portion of anticipated revenue from 2025 into 2026, the underlying programs, funding, and delivery commitments remain fully intact, and recent awards demonstrate that the US defense market continues to expand. In Europe, urgency for commercial partnerships in defense has increased meaningfully compared to a year ago. Germany has announced a EUR 7 billion per year space defense budget over the next five years, totaling approximately $40 billion. Our ISO-ready clean room and fully vertically integrated facilities in Munich make Spire one of the very few companies local to Germany with end-to-end small satellite capabilities with German nationals as well as German-speaking executives.

The Secretary of War's rapid procurement guidelines explicitly reward innovative firms that can meet capability needs today. Our Boulder-based manufacturing facility and all U.S. workforce provide the domestic footprint and security posture required to respond quickly. While the U.S. government shutdown shifted a portion of anticipated revenue from 2025 into 2026, the underlying programs, funding, and delivery commitments remain fully intact, and recent awards demonstrate that the U.S. defense market continues to expand. In Europe, urgency for commercial partnerships in defense has increased meaningfully compared to a year ago. Germany has announced a EUR 7 billion per year space defense budget over the next five years, totaling approximately $40 billion. Our ISO-ready clean room and fully vertically integrated facilities in Munich make Spire one of the very few companies local to Germany with end-to-end small satellite capabilities with German nationals as well as German-speaking executives.

Speaker #3: While the US government shutdown portion of anticipated shifted a revenue 2025 from into 2026, the underlying programs, funding, and delivery commitments remain fully intact, and recent awards demonstrate that the US defense market continues to expand in Europe.

Speaker #3: Urgency for commercial partnerships in defense has increased meaningfully compared to a year ago has . Germany announced a €7 billion per year , space defense budget over the next five years , totaling approximately $40 billion .

Speaker #3: Our ISO ready clean room and fully vertically integrated facilities in Munich make spire one of the very few companies local to Germany with end to small satellite end capabilities with German nationals , as well as German speaking executives .

Speaker #3: are We also the only one with deep in-space radiofrequency expertise . The space agency DLR , a current spire partner and , will German play a key role in , accelerating with engagement commercial suppliers .

Theresa Condor: We are also the only one with deep in-space radio frequency expertise. The German space agency DLR, a current Spire partner and customer, will play a key role in procurement, accelerating engagement with commercial suppliers. This relationship will support our ongoing direct engagement with the military on their short-term requirements, capability needs, and procurement asks. The European Space Agency Ministerial Council concluded in November with the largest financial commitment in their history. Member states pledged EUR 22 billion in new subscriptions for the next three years, with Germany contributing EUR 5 billion, an increase of almost 50%. Under the European Space Agency's geo-return policy, German contributions are reserved for contracts with German companies such as Spire, reinforcing our strategic positioning within Europe's growing space defense ecosystem and European Space Agency's largest contributor.

We are also the only one with deep in-space radio frequency expertise. The German space agency DLR, a current Spire partner and customer, will play a key role in procurement, accelerating engagement with commercial suppliers. This relationship will support our ongoing direct engagement with the military on their short-term requirements, capability needs, and procurement asks. The European Space Agency Ministerial Council concluded in November with the largest financial commitment in their history. Member states pledged EUR 22 billion in new subscriptions for the next three years, with Germany contributing EUR 5 billion, an increase of almost 50%. Under the European Space Agency's geo-return policy, German contributions are reserved for contracts with German companies such as Spire, reinforcing our strategic positioning within Europe's growing space defense ecosystem and European Space Agency's largest contributor.

Speaker #3: This relationship will support our ongoing direct procurement engagement with the military on term their short requirements , capability and procurement , asks the needs European Space Agency Ministerial concluded in Council November with the largest commitment financial in their history , member states pledged €22 billion in New subscriptions for the next three years , with Germany contributing €5 billion , an increase of almost 50% under the European Space Agency's Geo return policy contributions are .

Speaker #3: For contracts with German companies, such as Spire Germany, reinforcing our strategic positioning within Europe's growing space defense ecosystem and Space Agency's largest European contributor, the European Union's Space Shield initiative, to begin in slated 2026, and increasing urgency among NATO members further underscore demand for sovereign and commercial space capabilities across national security core requirements such as strategies.

Theresa Condor: The European Union's Space Shield Initiative, slated to begin in 2026, and increasing urgency among NATO members further underscore demand for sovereign and commercial space capabilities. Across national security strategies, core requirements such as intelligence, surveillance, and reconnaissance are consistently highlighted, reinforcing the relevance of Spire's dual-use satellite data services. NATO countries have pledged to increase their defense budgets to 5% of GDP. Assuming 5% of that amount for space would unlock $17 to 32 billion per year in additional contracts. Spire's space reconnaissance portfolio is seeing heightened demand as agencies move beyond traditional telecom and imaging approaches to exploit the radio frequency domain. Our pipeline includes multi-year sovereign programs with recurring data demand, as well as requests for immediate data delivery using installed capacity. With government backing, we have begun collecting S-band and X-band maritime radar signals and expanding geolocation capabilities to serve our non-US customer base.

The European Union's Space Shield Initiative, slated to begin in 2026, and increasing urgency among NATO members further underscore demand for sovereign and commercial space capabilities. Across national security strategies, core requirements such as intelligence, surveillance, and reconnaissance are consistently highlighted, reinforcing the relevance of Spire's dual-use satellite data services. NATO countries have pledged to increase their defense budgets to 5% of GDP. Assuming 5% of that amount for space would unlock $17 to 32 billion per year in additional contracts. Spire's space reconnaissance portfolio is seeing heightened demand as agencies move beyond traditional telecom and imaging approaches to exploit the radio frequency domain. Our pipeline includes multi-year sovereign programs with recurring data demand, as well as requests for immediate data delivery using installed capacity. With government backing, we have begun collecting S-band and X-band maritime radar signals and expanding geolocation capabilities to serve our non-U.S. customer base.

Speaker #3: reconnaissance are intelligence consistently highlighted , reinforcing the relevance of Spire's dual use satellite data services . NATO countries have pledged to increase their defense budgets to 5% of , assuming 5% of that amount for space GDP would unlock 17 to $32 billion per year .

Speaker #3: In additional contracts, Spire Space Reconnaissance portfolio is seeing heightened demand as agencies move beyond telecom and approaches to traditional exploit the imaging radio frequency domain.

Speaker #3: Our pipeline includes multi-year, sovereign programs with recurring data demand, as well as requests for immediate delivery using installed data with government capacity backing.

Speaker #3: We have begun collecting S-band and X-band maritime radar signals and expanding geolocation capabilities to serve our base. Spire is advancing technology by utilizing a single satellite and our form factor, Lemur platform, to gain insights that would traditionally take a larger platform or multiple satellites.

Theresa Condor: Spire is advancing technology by utilizing a single satellite and our small form factor LEMR platform to gain insights that would traditionally take a larger platform or multiple satellites. Even as Spire emerges as a national security technology partner, our commercial business remains an important growth engine. Under new leadership, our weather and aviation businesses are increasingly integrated, with commercial revenue growing at a double-digit rate year over year and strong customer retention. Spire continues to see interest from our energy and commodity-focused clients that are using our short-term high-resolution forecasts and our long-term sub-seasonal to seasonal forecasts. We are hearing consistent feedback from these customers that Spire's forecasts are ahead of other models, capturing critical weather signs earlier and translating them into real operational and financial impact.

Spire is advancing technology by utilizing a single satellite and our small form factor LEMR platform to gain insights that would traditionally take a larger platform or multiple satellites. Even as Spire emerges as a national security technology partner, our commercial business remains an important growth engine. Under new leadership, our weather and aviation businesses are increasingly integrated, with commercial revenue growing at a double-digit rate year over year and strong customer retention. Spire continues to see interest from our energy and commodity-focused clients that are using our short-term high-resolution forecasts and our long-term sub-seasonal to seasonal forecasts. We are hearing consistent feedback from these customers that Spire's forecasts are ahead of other models, capturing critical weather signs earlier and translating them into real operational and financial impact.

Speaker #3: Even as Spire emerges in national security technology, our commercial business remains an important engine of growth under new leadership. Our weather and aviation businesses are increasingly integrated with commercial revenue growing at a double-digit rate year over year, and strong customer retention.

Speaker #3: Spire continues to see interest from our energy and commodity focused that clients using our short are term , high resolution forecasts and long term our subseasonal to seasonal forecasts hearing .

Speaker #3: Feedback from these, we are Spire's, that forecasts are ahead of other models, capturing critical weather signs earlier for customers and translating them into real operational and financial impact.

Speaker #3: During the quarter , we were also awarded a commercial aviation contract in which the customer is utilizing Spire's Ads-b data to track aircraft movements and detect potential discrepancies , point to suspicious which may activities , including route divergence or aircraft operating with Ads-b switched off .

Theresa Condor: During the quarter, we were also awarded a commercial aviation contract in which the customer is utilizing Spire's ADS-B data to track aircraft movements and detect potential discrepancies, which may point to suspicious activities, including route divergence, or aircraft operating with ADS-B switched off. Our engineering transformation efforts continue to deliver results, proving that we can deliver operational capabilities at scale. We process nearly twice as many satellites through the clean room this year while maintaining flat headcount and stricter quality controls by implementing design-for-manufacturability and lean manufacturing principles. We are meeting heightened government cybersecurity and sovereign requirements and delivering the accompanying documentation while continuing to invest in this area. On-orbit checkout time has been reduced by roughly 50%, compressing the time between capital investment and revenue realization.

During the quarter, we were also awarded a commercial aviation contract in which the customer is utilizing Spire's ADS-B data to track aircraft movements and detect potential discrepancies, which may point to suspicious activities, including route divergence, or aircraft operating with ADS-B switched off. Our engineering transformation efforts continue to deliver results, proving that we can deliver operational capabilities at scale. We process nearly twice as many satellites through the clean room this year while maintaining flat headcount and stricter quality controls by implementing design-for-manufacturability and lean manufacturing principles. We are meeting heightened government cybersecurity and sovereign requirements and delivering the accompanying documentation while continuing to invest in this area. On-orbit checkout time has been reduced by roughly 50%, compressing the time between capital investment and revenue realization.

Speaker #3: Our engineering transformation efforts continue to deliver results, proving that we can deliver operational capabilities at scale. We nearly doubled the number of satellites through the year, while maintaining cleanroom processes, flat headcount, and stricter controls.

Speaker #3: By implementing design for manufacturability and lean manufacturing principles, we are meeting heightened government, cybersecurity, and sovereign requirements, and delivering the documentation while continuing to accompany in this area on orbit.

Speaker #3: Checkout has been time reduced by roughly 50% , compressing the time between capital and investment revenue realization . We expect this to further improve and positively impact our results as we launch further satellites for our customers in 2026 , at an expected cadence of every three months , on average .

Theresa Condor: We expect this to further improve and positively impact our results as we launch further satellites for our customers in 2026 at an expected cadence of every three months on average. While we encountered unexpected timing impacts from the US government shutdown and inactions in the back half of the year, I remain confident in Spire's technology advantage, our expanding capacity, and the clear demand for both government and commercial capabilities. I reiterate our commitment to long-term double-digit sustainable revenue growth. 2025 serves as a year of revenue timing normalization, not a change of growth trajectory, setting up 2026 nicely to reflect the full benefit of capacity, backlog, and demand already in place. I am excited about what lies ahead and the value we will continue to build for shareholders.

We expect this to further improve and positively impact our results as we launch further satellites for our customers in 2026 at an expected cadence of every three months on average. While we encountered unexpected timing impacts from the U.S. government shutdown and inactions in the back half of the year, I remain confident in Spire's technology advantage, our expanding capacity, and the clear demand for both government and commercial capabilities. I reiterate our commitment to long-term double-digit sustainable revenue growth. 2025 serves as a year of revenue timing normalization, not a change of growth trajectory, setting up 2026 nicely to reflect the full benefit of capacity, backlog, and demand already in place. I am excited about what lies ahead and the value we will continue to build for shareholders.

Speaker #3: While we encountered unexpected timing impacts from the US government shutdown and inactions in the back half of the year, I remain confident in Spire's technology advantage, our capacity, and the expanding demand for government and commercial capabilities.

Speaker #3: I both reiterate our commitment for to long term double digit sustainable growth . serves as 2025 a year of revenue revenue timing , normalization , not a change of growth trajectory .

Speaker #3: Setting up 2026 nicely to reflect the capacity backlog and place. I am about benefit ahead already, excited about the value we will continue to build for.

Speaker #3: Now, shareholders, I will turn it over to Ali, who will share our financial results. Reflecting some of the mentioned revenue timing and accounting effects, and our strong backlog and remaining performance obligations, which drive our confident growth outlook for 2026.

Theresa Condor: I will now turn it over to Allie, who will share our financial results reflecting some of the mentioned revenue timing and accounting effects and our strong backlog, and remaining performance obligations, which drive our confident growth outlook for 2026. Thank you, Teresa. Before walking through the financials, I want to anchor them to the operating momentum Teresa just described. Q3 reflected strong bookings, growing backlog, and expanding on-orbit capacity, offset by revenue timing impacts related to government delays. Importantly, these results do not reflect any change we see in underlying demand, customer commitments, or program execution. I will be discussing non-GAAP financial measures unless otherwise stated. A reconciliation of GAAP to non-GAAP results is included in our earnings release available on our investor relations website.

I will now turn it over to Ali, who will share our financial results reflecting some of the mentioned revenue timing and accounting effects and our strong backlog, and remaining performance obligations, which drive our confident growth outlook for 2026.

Speaker #4: Thank for you Theresa . Before walking through the financials , I want to anchor them to operating the momentum to Theresa . Just described the third quarter , reflected strong bookings , growing backlog and expanding on orbit capacity , offset by revenue related to government impacts .

Alison Engel: Thank you, Teresa. Before walking through the financials, I want to anchor them to the operating momentum Teresa just described. Q3 reflected strong bookings, growing backlog, and expanding on-orbit capacity, offset by revenue timing impacts related to government delays. Importantly, these results do not reflect any change we see in underlying demand, customer commitments, or program execution. I will be discussing non-GAAP financial measures unless otherwise stated. A reconciliation of GAAP to non-GAAP results is included in our earnings release available on our investor relations website.

Speaker #4: Importantly , results reflect timing in do not change underlying demand . Customer these . or program execution . I will be discussing non-GAAP financial We see unless otherwise stated .

Speaker #4: A of GAAP to non-GAAP results is included in our earnings available on our Investor Relations website . As a reminder reconciliation , Spire's third quarter release 2024 results include our maritime business , which was sold at the end of April 2025 and had contributed about $40 million of revenue in the prior 12 months .

Theresa Condor: As a reminder, Spire's Q3 2024 results include our maritime business, which was sold at the end of April 2025 and had contributed about $40 million of revenue in the prior 12 months. All year-over-year comparisons should be viewed in that context. GAAP revenue for the Q3 of 2024 was $12.7 million. Year-over-year revenue declined primarily due to the absence of approximately $11.5 million of maritime revenue that was present in the Q3 2024 and is no longer part of the business. In addition, approximately $6 to 8 million of revenue shifted out of the quarter due to the timing of milestone-based revenue recognition on an existing multi-year contract and the uncertainty of award for an Earth observation data contract. First, revenue recognition timing on a multi-year contract reduced Q3 revenue by approximately $4 to 5 million.

As a reminder, Spire's Q3 2024 results include our maritime business, which was sold at the end of April 2025 and had contributed about $40 million of revenue in the prior 12 months. All year-over-year comparisons should be viewed in that context. GAAP revenue for the Q3 of 2024 was $12.7 million. Year-over-year revenue declined primarily due to the absence of approximately $11.5 million of maritime revenue that was present in the Q3 2024 and is no longer part of the business. In addition, approximately $6-$8 million of revenue shifted out of the quarter due to the timing of milestone-based revenue recognition on an existing multi-year contract and the uncertainty of award for an Earth observation data contract. First, revenue recognition timing on a multi-year contract reduced Q3 revenue by approximately $4-$5 million.

Speaker #4: All year-over-year should be viewed in that context. GAAP comparisons should reflect that revenue for the third quarter of 2025 was $12.7 million year over year.

Speaker #4: Revenue declined primarily due to the absence of approximately $11.5 million of maritime revenue that was present in the third quarter of 2024 and is no longer part of the business.

Speaker #4: In addition, approximately $6 to $8 million of revenue shifted out of the quarter due to the timing of base revenue recognition milestones on an existing multi-year contract and the uncertainty of award for an Earth observation data contract.

Speaker #4: First, revenue recognition timing on a multi-year contract reduced third quarter revenue by approximately $4 to $5 million. This revenue remains fully contracted and is expected to be recognized in 2026.

Speaker #4: As we continue to execute and deliver program milestones . Second , we saw a third quarter impact from the uncertainty of a NASA observation data contract renewal with additional smaller , short duration opportunities .

Theresa Condor: This revenue remains fully contracted and is expected to be recognized in 2026 as we continue to execute and deliver program milestones. Second, we saw a Q3 impact from the uncertainty of a NASA Earth observation data contract renewal, with additional smaller short-duration opportunities also deferred. The NASA contract is a contract that Spire has successfully delivered for several years with very high customer satisfaction. Taken together, these timing effects shifted a meaningful portion of revenue out of Q3 but did not reduce the overall value of contracted programs. Non-GAAP operating loss for Q3 2025 was negative $13.9 million compared to negative $6.1 million in Q3 2024. Adjusted EBITDA was negative $11.8 million compared to negative $3.1 million a year ago.

This revenue remains fully contracted and is expected to be recognized in 2026 as we continue to execute and deliver program milestones. Second, we saw a Q3 impact from the uncertainty of a NASA Earth observation data contract renewal, with additional smaller short-duration opportunities also deferred. The NASA contract is a contract that Spire has successfully delivered for several years with very high customer satisfaction. Taken together, these timing effects shifted a meaningful portion of revenue out of Q3 but did not reduce the overall value of contracted programs. Non-GAAP operating loss for Q3 2025 was negative $13.9 million compared to negative $6.1 million in Q3 2024. Adjusted EBITDA was negative $11.8 million compared to negative $3.1 million a year ago.

Speaker #4: Also deferred Earth the NASA contract is a has Spire successfully contract that delivered several for years with very high customer satisfaction . Taken together , these timing shifted a meaningful portion of revenue effects out of the third quarter , but did not reduce the overall value of contracted programs .

Speaker #4: Non-GAAP operating loss for the third quarter of 2025 was -$13.9 million, compared to negative $6.1 million in the third quarter of 2020.

Speaker #4: For adjusted EBITDA was -$11.8 million compared to -$3.1 million a year ago. These changes were primarily driven by lower revenue recognized in the quarter, as just mentioned, rather than an increasing cost structure of the business.

Speaker #4: maritime Excluding the business and certain one time expenses . Operating in the third quarter were expenses over year , and sequentially , reflecting continued cost as revenue recognition management normalizes .

Theresa Condor: These changes were primarily driven by revenue recognized in the quarter, as just mentioned, rather than an increasing cost structure of the business. Excluding the maritime business and certain one-time expenses, operating expenses in the third quarter were down year-over-year and sequentially, reflecting continued cost management. As revenue recognition normalizes, we expect improved absorption of fixed costs and a corresponding improvement in margins. Turning to the balance sheet, Spire utilized $20.4 million of free cash flow in the third quarter and ended the period with $96.8 million of cash, cash equivalents, and marketable securities. Cash usage in the quarter reflected revenue timing effects, working capital dynamics related to satellite manufacturing, and elevated legal and professional fees. As of the end of the third quarter, our remaining performance obligations are over $200 million, which is over three times trailing 12 months revenue.

These changes were primarily driven by revenue recognized in the quarter, as just mentioned, rather than an increasing cost structure of the business. Excluding the maritime business and certain one-time expenses, operating expenses in the third quarter were down year-over-year and sequentially, reflecting continued cost management. As revenue recognition normalizes, we expect improved absorption of fixed costs and a corresponding improvement in margins. Turning to the balance sheet, Spire utilized $20.4 million of free cash flow in the third quarter and ended the period with $96.8 million of cash, cash equivalents, and marketable securities. Cash usage in the quarter reflected revenue timing effects, working capital dynamics related to satellite manufacturing, and elevated legal and professional fees. As of the end of the third quarter, our remaining performance obligations are over $200 million, which is over three times trailing 12 months revenue.

Speaker #4: We expect improved absorption of fixed costs and a corresponding improvement in margins. Turning to the balance sheet, Spire utilized $20.4 million of free cash flow in the third quarter and ended the period with $96.8 million of cash, cash equivalents, and marketable.

Speaker #4: Cash usage in securities the reflected quarter revenue timing . Working capital dynamics related to satellite effects manufacturing and elevated legal and professional . As of the end of the third quarter , our remaining obligations performance are over $200 million , which is over three times trailing 12 months revenue of this amount , we expect approximately as $70 million to be revenue recognized in 2026 .

Speaker #4: This reflects multi-year backlog contracted programs, primarily with government and institutional customers, and provides substantial revenue visibility as we move into 2026.

Theresa Condor: Of this amount, we expect approximately $70 million to be recognized as revenue in 2026. This backlog reflects multi-year contracted programs, primarily with government and institutional customers, and provides substantial revenue visibility as we move into 2026. For the full year 2025, we now expect revenue in the range of $70.5 to 72.5 million, implying fourth quarter revenue of approximately $14.8 to 16.8 million. Through 30 November 2025, we have already recognized approximately $10.5 to 11.5 million of fourth quarter revenue. We anticipate full year non-GAAP operating loss of negative $54.7 to 53.8 million and Adjusted EBITDA of negative $42.2 to 41.3 million. For non-GAAP loss per share, we expect a range of negative $1.98 to negative $1.95, assuming a basic weighted average share count of approximately 30.9 million shares.

Of this amount, we expect approximately $70 million to be recognized as revenue in 2026. This backlog reflects multi-year contracted programs, primarily with government and institutional customers, and provides substantial revenue visibility as we move into 2026. For the full year 2025, we now expect revenue in the range of $70.5 to 72.5 million, implying fourth quarter revenue of approximately $14.8 to 16.8 million. Through 30 November 2025, we have already recognized approximately $10.5 to 11.5 million of fourth quarter revenue. We anticipate full year non-GAAP operating loss of negative $54.7 to 53.8 million and Adjusted EBITDA of negative $42.2 to 41.3 million. For non-GAAP loss per share, we expect a range of negative $1.98 to negative $1.95, assuming a basic weighted average share count of approximately 30.9 million shares.

Speaker #4: For the full year 2025, we now expect revenue in the range of $70.5 million to $72.5 million, implying fourth quarter revenue of approximately $14.8 million to $16.8 million through November 30th, 2025.

Speaker #4: We have already recognized approximately $10.5 million to $11.5 million of fourth quarter revenue. We anticipate full-year non-GAAP operating loss of $54.7 million to $53.8 million, and adjusted EBITDA of -$42.2 million to -$41.3 million, for non-GAAP loss per share.

Speaker #4: We expect a range of negative $1.98 to negative one dollars $0.95 . Assuming a basic weighted average share count of approximately 30.9 million shares , the company is in the process of completing its 2026 budget with a focus on becoming adjusted and EBITDA operating even flow cash to by no positive later than Q4 2026 .

Theresa Condor: The company is in the process of completing its 2026 budget with a focus on becoming Adjusted EBITDA and operating cash flow break-even to positive by no later than Q4 2026. We are taking a comprehensive look at our cost base to align to our revenue expectations and the sale of the maritime business. More than $10 million of revenue has moved into 2026 due to government delays like the shutdown. This amount relates to programs that remain funded, contracted, and operationally underway. With approximately $70 million of this revenue already sitting in Remaining Performance Obligations to be recognized in 2026, our 2026 growth is supported by contracts already secured, expanding backlog, and an increase in on-orbit capacity that is already deployed or scheduled to be deployed in the first quarter.

The company is in the process of completing its 2026 budget with a focus on becoming Adjusted EBITDA and operating cash flow break-even to positive by no later than Q4 2026. We are taking a comprehensive look at our cost base to align to our revenue expectations and the sale of the maritime business. More than $10 million of revenue has moved into 2026 due to government delays like the shutdown. This amount relates to programs that remain funded, contracted, and operationally underway. With approximately $70 million of this revenue already sitting in Remaining Performance Obligations to be recognized in 2026, our 2026 growth is supported by contracts already secured, expanding backlog, and an increase in on-orbit capacity that is already deployed or scheduled to be deployed in the first quarter.

Speaker #4: We are taking a comprehensive cost look at our base to align to our revenue expectations and the sale of the maritime business. More than $10 million of revenue has moved into 2026 due to government delays, like the shutdown.

Speaker #4: This amount relates to programs that remain funded, contracted, and operationally underway, with approximately $70 million of this revenue already sitting in remaining performance obligations to be recognized in 2026.

Speaker #4: Our 2026 growth is supported by contracts already secured, an expanding backlog, and an increase in on-orbit capacity that is already deployed or scheduled to be deployed in the first quarter.

Speaker #4: Given a revenue movement out of 2025, we now expect greater than 30% revenue growth in 2026 for the business remaining after the maritime divestiture.

Theresa Condor: Given revenue movement out of 2025, we now expect greater than 30% revenue growth in 2026 for the business remaining after the maritime divestiture. As in prior years, we plan to provide more comprehensive guidance for 2026 during our earnings call in March. With that, I will turn the call back to the operator for questions. Thank you. If you'd like to ask a question, please press Star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the Star keys. Our first question comes from the line of Eric Rasmussen with Stifel. Please proceed with your question. Yeah, thanks for taking the questions.

Given revenue movement out of 2025, we now expect greater than 30% revenue growth in 2026 for the business remaining after the maritime divestiture. As in prior years, we plan to provide more comprehensive guidance for 2026 during our earnings call in March. With that, I will turn the call back to the operator for questions.

Speaker #4: As in prior years, we plan to provide more comprehensive guidance for 2026. During our call in March, we will provide that guidance. With that, I will turn the call back to the operator for questions.

Speaker #1: Thank you. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the queue.

Speaker #1: You may press two. If you'd like, press star to remove your question from the question queue. For participants using speakerphone equipment, it may be necessary to pick up your handset before pressing the star key.

Operator: Thank you. If you'd like to ask a question, please press Star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the Star keys. Our first question comes from the line of Erik Rasmussen with Stifel. Please proceed with your question.

Speaker #1: From the line of Eric Rasmussen with Stifel. Please proceed with your question.

Speaker #5: Yes , thanks for taking the questions . You know , Teresa , prepared in your remarks , it sounded like there's a lot of opportunities and a lot of development that's happened since our last update .

Erik Rasmussen: Yeah, thanks for taking the questions.

Theresa Condor: You know, Theresa, in your prepared remarks, it sounded like there's a lot of opportunities and a lot of development that's happened since our last update. But so far, it just doesn't seem like it's translating into the revenue opportunities. I mean, you're looking at, obviously, this year's challenge with some of the timing issues and then the government shutdown. But what gives you the confidence that 30% is the right number for next year for growth? And what are some of the quicks and takes that get you there? I mean, obviously, you have $70 million of RPO covered for next year, but what gets you to even higher than that 30% growth rate? Yeah, Eric, thanks for that question. And thanks for recognizing that there's over $10 million that really shifted across the calendar year and that the number that we're giving is in excess of 30%.

You know, Theresa, in your prepared remarks, it sounded like there's a lot of opportunities and a lot of development that's happened since our last update. But so far, it just doesn't seem like it's translating into the revenue opportunities. I mean, you're looking at, obviously, this year's challenge with some of the timing issues and then the government shutdown. But what gives you the confidence that 30% is the right number for next year for growth? And what are some of the quicks and takes that get you there? I mean, obviously, you have $70 million of RPO covered for next year, but what gets you to even higher than that 30% growth rate?

Speaker #5: But it . just So far doesn't seem like it's translating into the revenue opportunities . I mean , you're looking at , you know , obviously this year's challenge with some of the timing issues and then the government shutdown .

Speaker #5: But what gives you the confidence that 30% is the right number for next year for growth? And what are some of the puts and takes that get you there?

Speaker #5: I mean , obviously you have 70 million of RPO covered . You know , for next year . But what what gets you to even higher than that rate 30% growth

Speaker #3: Yeah, Eric, thanks for that, you know, question. Thanks for—

Speaker #3: there's over 10 million that really shifted across the calendar year . And that the number that we're giving is , you know , in excess .

Theresa Condor: Yeah, Eric, thanks for that question. And thanks for recognizing that there's over $10 million that really shifted across the calendar year and that the number that we're giving is in excess of 30%.

Speaker #3: We did have government shutdown stuff. But at the same time, they continue to push on things like the Shield ID that came out in the US.

Speaker #3: There is great urgency to move fast forward with commercial companies and move. And, of course, we talk quite a lot about Europe.

Theresa Condor: We did have government shutdown stuff, but at the same time, the US continues to push on things like the Shield IDIQ that came out in the US. There is great urgency to move fast and move forward with commercial companies. Of course, we've talked quite a lot about Europe. As you know, I'm based in Europe. I'm involved directly myself in a lot of these conversations. You heard in the prepared remarks about the very large budgets that are coming out of Germany, both from the national side as well as the contributions to ESA. 2025 was really a resetting year for Spire, and I would say in Europe as well. It was the year that they started to get their budgets in order, understand their priorities, start to look at some of the more obvious ways that they spend their money.

We did have government shutdown stuff, but at the same time, the U.S. continues to push on things like the Shield IDIQ that came out in the U.S. There is great urgency to move fast and move forward with commercial companies. Of course, we've talked quite a lot about Europe. As you know, I'm based in Europe. I'm involved directly myself in a lot of these conversations. You heard in the prepared remarks about the very large budgets that are coming out of Germany, both from the national side as well as the contributions to ESA. 2025 was really a resetting year for Spire, and I would say in Europe as well. It was the year that they started to get their budgets in order, understand their priorities, start to look at some of the more obvious ways that they spend their money.

Speaker #3: As you know , I'm based in Europe . I'm involved directly myself in a lot conversations . You of these prepared remarks about the very large budgets that are coming out of Germany , both from the national side as well as the contributions to ESA 2025 , was really a resetting year for Spire .

Speaker #3: And I would in Europe as well. It's the year that they started to get their budgets in order, understand their priorities, start to look at some of the more obvious ways that save their money.

Speaker #3: And 2026 is really where they start to make movement. Everyone we talk to over here has huge urgency and recognizes the importance of partnering with commercial entities.

Theresa Condor: And 2026 is really where they start to make movement. Everyone we talk to over here has huge urgency and recognizes the importance of partnering with commercial entities. So I feel very good that we have a lot of momentum going into 2026 and that we're well positioned. You mentioned the remaining performance obligations. These are things that are contracted. These are things that are high manufacturing throughput, and the really big increase in in-orbit capacity that we have means that we can meet both all the existing demands as well as the new ones that we're expecting to come from that pipeline backlog that we have. Great. And then maybe just staying with one of the two items with NASA, the Earth observation contract. That was around $7 million, I think, last year. You signed it in August time frame and extension. Do you expect that to actually happen?

And 2026 is really where they start to make movement. Everyone we talk to over here has huge urgency and recognizes the importance of partnering with commercial entities. So I feel very good that we have a lot of momentum going into 2026 and that we're well positioned. You mentioned the remaining performance obligations. These are things that are contracted. These are things that are high manufacturing throughput, and the really big increase in in-orbit capacity that we have means that we can meet both all the existing demands as well as the new ones that we're expecting to come from that pipeline backlog that we have.

Speaker #3: So I feel we have a lot of good momentum going into 2026 and that we're well positioned. As mentioned, the performance obligations remain.

Speaker #3: These are things that are contracted . These are are , you know , high things manufacturing throughput and really the big increase in that in-orbit capacity have mean that meet we that we can both all the existing demands as well as the new ones that we're expecting come from , to you know , from that pipeline backlog that we have .

Speaker #5: Great. And then maybe just staying with one of the two items with NASA, the Earth observation contract that was around $7 million. I think last year you signed it in the August timeframe.

Erik Rasmussen: Great. And then maybe just staying with one of the two items with NASA, the Earth observation contract. That was around $7 million, I think, last year. You signed it in August time frame and extension. Do you expect that to actually happen?

Speaker #5: An extension . Do you expect that to actually happen ? Is it just because of the government shutdown , or was there something else that's going on that maybe could put that at jeopardy of not not ?

Speaker #3: Yeah, and I think, you know, there's a lot of stuff.

Theresa Condor: Was it just because of the government shutdown, or was there something else that's going on that maybe could put that at jeopardy of not being renewed? Yeah, and I think, you know, there's a lot of stuff going on at NASA right now in addition to everything that happened with the US government shutdown. As you saw from the short-term extensions, there is a great desire to have access to those data sets. With everything that happened in the US, it is true that that did not sign. It doesn't mean that it's not signing. It means that there is a delay while all of this process happens at NASA. And that's really, I think, the only thing that we can say right now. We don't believe that it's lost. It is not yet signed. Okay. Then maybe just your cash balance.

Was it just because of the government shutdown, or was there something else that's going on that maybe could put that at jeopardy of not being renewed?

Speaker #3: Now, right, in addition to everything that happened with the U.S. government shutdown. And as

Theresa Condor: Yeah, and I think, you know, there's a lot of stuff going on at NASA right now in addition to everything that happened with the US government shutdown. As you saw from the short-term extensions, there is a great desire to have access to those data sets. With everything that happened in the U.S., it is true that that did not sign. It doesn't mean that it's not signing. It means that there is a delay while all of this process happens at NASA. And that's really, I think, the only thing that we can say right now. We don't believe that it's lost. It is not yet signed.

Speaker #3: doesn't mean that it's not signing . It means that there is a delay renewed . While all of this process happens at NASA and that's that's really , I think the only thing that we can say right don't believe that being it's is lost .

Speaker #3: Now, we haven't signed yet. It—

Speaker #5: . Okay just that your cash balance . I may be remember last our update . You were targeting around 100 million exiting this year .

Erik Rasmussen: Okay. Then maybe just your cash balance.

Speaker #5: Now you're that below. How should we think through about cash going into Q3? Just tied to it really now going forward? You know, revenue and revenue growth?

Theresa Condor: I remember our last update. You were targeting around $100 million exiting this year. Now you're below that through Q3. How should we think about cash going forward? Is it really just tied to now revenue and revenue growth? And you passed a lot of the impacts of some professional fees and everything else that was driving up a lot of the more near-term spending. Maybe I'll start, and then Ally, if you need to jump in. So I'm going to start by saying I think we will finish the year with a lot of cash on the balance sheet. We have a lot. This has to do with billings coming in the door and having some mismatch in the timing of how all this plays out.

I remember our last update. You were targeting around $100 million exiting this year. Now you're below that through Q3. How should we think about cash going forward? Is it really just tied to now revenue and revenue growth? And you passed a lot of the impacts of some professional fees and everything else that was driving up a lot of the more near-term spending.

Speaker #5: You and passed a lot of—is the impacts of, you know, fees and everything else that is driving up a lot of the more near-term, you know, the—.

Speaker #3: I'll maybe start, and then need to jump in.

Speaker #3: , Ali , we we will finish the year with a lot of cash on the balance . We have , you know , sheet a lot of this with has to do Billings coming in the door and , and having some mismatch in the timing of how all this plays out .

Theresa Condor: Maybe I'll start, and then Ally, if you need to jump in. So I'm going to start by saying I think we will finish the year with a lot of cash on the balance sheet. We have a lot. This has to do with billings coming in the door and having some mismatch in the timing of how all this plays out.

Speaker #3: The thing I would mention is that we have still had, you know, a number of these, kind of these, you know, legal and accounting fees that have been happening throughout the year that have maybe, Ali, I'll pass it to you.

Speaker #3: one time ,

Theresa Condor: The other thing I would mention is that we have still had a number of these kind of one-time legal and accounting fees that have been happening throughout the year. So maybe, Ally, I'll pass it to you to answer more comprehensively. Sure. Thanks, Teresa. Good morning, Eric. Yeah, I mean, we definitely finished the balance sheet strong with just under $100 million in cash. We remain debt-free, so we feel very good about our balance sheet. And so I do think we will end the year with a strong cash balance and take that into 2026. We do have, as Teresa mentioned, timing issues on payment collections in contracts versus when we execute the work, as well as some continued need for spending around particularly legal fees. Great. I'll jump back into the queue. Thanks. Thanks, Eric. Thank you.

The other thing I would mention is that we have still had a number of these kind of one-time legal and accounting fees that have been happening throughout the year. So maybe, Ali, I'll pass it to you to answer more comprehensively.

Speaker #4: Thanks , you to morning . Eric . Yeah , I the

Speaker #4: Good sheet . Sheet strong just under with So 100 million in cash definitely finished . You know , Teresa . we mean , we free , so we feel very good about our balance sheet .

Alison Engel: Sure. Thanks, Teresa. Good morning, Eric. Yeah, I mean, we definitely finished the balance sheet strong with just under $100 million in cash. We remain debt-free, so we feel very good about our balance sheet. And so I do think we will end the year with a strong cash balance and take that into 2026. We do have, as Teresa mentioned, timing issues on payment collections in contracts versus when we execute the work, as well as some continued need for spending around particularly legal fees.

Speaker #4: And so I do think we will well , in the year with a strong cash balance and and take that into 2026 . We do , as have Teresa mentioned , timing issues on payment collections in contracts versus when we execute the work as well as , you know , some continued need spending around around , particularly fees .

Speaker #5: Great. I'll fall back into the queue. Thanks.

Speaker #5: Great .

Speaker #1: Our next question comes from the Jeff Van Rhee with Craig-hallum Capital Group . Please proceed with line of your question .

Erik Rasmussen: Great. I'll jump back into the queue. Thanks.

Theresa Condor: Thanks, Eric.

Operator: Thank you. Our next question comes from the line of Jeff Van Rhee with Craig-Hallum Capital Group. Please proceed with your question.

Theresa Condor: Our next question comes from the line of Jeff Van Rhee with Craig-Hallum Capital Group. Please proceed with your question. Great. Thanks. Thanks for taking my questions, guys. Several, and apologies if I repeat here. I got bumped off the call briefly. But if I take a look at the previous guide to the current guide midpoints, we're taking roughly $19 million out of the second half. How does that, if you had to put some crude sort of numbers to that reduction, just break that down for me. You want me to take it, Theresa? Go ahead. Go ahead. Yeah. Yeah. I mean, I'd say there's about somewhere, I think we said $6 to 8 million related to a percent complete contract. There's several million related to the Earth observation contract.

Jeff Van Rhee: Great. Thanks. Thanks for taking my questions, guys. Several, and apologies if I repeat here. I got bumped off the call briefly. But if I take a look at the previous guide to the current guide midpoints, we're taking roughly $19 million out of the second half. How does that, if you had to put some crude sort of numbers to that reduction, just break that down for me.

Speaker #4: I mean , I'd say there's about , you know , legal somewhere I think there's Great , said 6 to 8 million to related a percent complete contract .

Alison Engel: You want me to take it, Theresa?

Theresa Condor: Go ahead. Go ahead.

Alison Engel: Yeah. Yeah. I mean, I'd say there's about somewhere, I think we said $6 to 8 million related to a percent complete contract. There's several million related to the Earth observation contract.

Speaker #4: There's several million related to the Earth observation contract . And I'd say we probably , you know , lost another 6 to 8 million just due to , you know , potential or loss of contracts , getting signed due to the the shutdown .

Speaker #4: government That was , you know , kind of an unprecedented length of at sort of critical end of the year timeframe for .

Theresa Condor: I'd say we probably lost another $6 to 8 million just due to potential or loss of contracts getting signed due to the government shutdown. That was kind of an unprecedented length of time at sort of the critical end of the year time frame for us. Okay. And the only thing I want to add, if I can, Jeff, just to think about it, is that more than $10 million of this with stuff that has gotten pushed from a timing perspective into 2026, that takes us a bit below the low end of the guidance, just to set the context there. Yeah. On the, can you expand on the percent completion? I think you said just now $7 million of it is due to that. Just explain that. What happened there? And I can take that, Ally.

I'd say we probably lost another $6 to 8 million just due to potential or loss of contracts getting signed due to the government shutdown. That was kind of an unprecedented length of time at sort of the critical end of the year time frame for us.

Speaker #6: .

Speaker #3: want to I I , if I can , add , if Jeff , think about just to it , is that 10 million of more this was stuff that has than gotten from a timing perspective .

Jeff Van Rhee: Okay.

Theresa Condor: And the only thing I want to add, if I can, Jeff, just to think about it, is that more than $10 million of this with stuff that has gotten pushed from a timing perspective into 2026, that takes us a bit below the low end of the guidance, just to set the context there.

Jeff Van Rhee: Yeah. On the, can you expand on the percent completion? I think you said just now $7 million of it is due to that. Just explain that. What happened there?

Speaker #3: take that out . So I Jeff , as you know we work across quite a number of these large programs with governments on these new accounting rules with the percent completion and of that requires interaction with our that are government , customers and partners through that .

Theresa Condor: And I can take that, Ali.

Theresa Condor: So I think, Jeff, as you know, we work across quite a number of these large programs with governments that are on these new accounting rules with the percent completion. And a lot of that requires interaction with our government customers and partners through that process. And of course, we are impacted by the timing of those interactions with those government partners, especially under the way that we do the accounting here. So this is something that it shifted in time across the calendar year. Again, the contracts are in implementation. It's just the timing of it that has moved around. Okay. You had the substantial wildfire contract award, and I believe that you got a smidge of that maybe in Q2, but that should be ramping in Q3. And then you had that substantial NOAA upsell. Are both of those still tracking as to your expectations 90 days ago?

So I think, Jeff, as you know, we work across quite a number of these large programs with governments that are on these new accounting rules with the percent completion. And a lot of that requires interaction with our government customers and partners through that process. And of course, we are impacted by the timing of those interactions with those government partners, especially under the way that we do the accounting here. So this is something that it shifted in time across the calendar year. Again, the contracts are in implementation. It's just the timing of it that has moved around.

Speaker #3: And of course , we process , you know , we are impacted the by of those timing interactions with those government partners , especially a lot under the way that we do the accounting here .

Speaker #3: So this is something that it shifted in time across the calendar year again , the . So contracts implementation . just the timing of it that has moved around .

Speaker #6: Okay. It's—you had the substantial, you...

Jeff Van Rhee: Okay. You had the substantial wildfire contract award, and I believe that you got a smidge of that maybe in Q2, but that should be ramping in Q3. And then you had that substantial NOAA upsell. Are both of those still tracking as to your expectations 90 days ago?

Speaker #3: Talked about it significantly contributing revenue in 2026 and in 2027. As we complete implementation.

Theresa Condor: They're both still tracking, and the team is deeply involved in delivering on both of them. The wildfire sat one, of course, we've talked about it contributing significantly to revenue in 2026 and in 2027 as we complete implementation. Okay. Then I know, at least my memory was, you had put up the number is 27, if I remember right, but you had a lot of satellites going up on the transporter missions 12, 13, 14 earlier this year. A lot of that, by my understanding, was mechanical in terms of red rack, namely once they're up and accepted and live, the revenue turns on. Any issues with the satellites put up in those transporter missions from a functionality, performance, or client acceptance standpoint? Satellites are functioning. We're collecting data. Customers are getting the data. We just had another launch that went up.

Speaker #6: But you had a lot of a lot satellites going up on of the transporter missions . 1314 earlier this year . And a lot of that , by my I 12 understanding , was mechanical in terms of rev rack , namely , once they're up and numbers accepted and live , the revenue turns on are in issues with the put transporter missions from a satellites functionality , performance or client acceptance standpoint .

Jeff Van Rhee: Okay. Then I know, at least my memory was, you had put up the number is 27, if I remember right, but you had a lot of satellites going up on the transporter missions 12, 13, 14 earlier this year. A lot of that, by my understanding, was mechanical in terms of red rack, namely once they're up and accepted and live, the revenue turns on. Any issues with the satellites put up in those transporter missions from a functionality, performance, or client acceptance standpoint?

Speaker #6: any Okay .

Speaker #3: Functions are satellites are functioning . We're collecting data . Customers are getting the data . We just had another launch that went when when was the last transporter one was like at the end I November .

Theresa Condor: Satellites are functioning. We're collecting data. Customers are getting the data. We just had another launch that went up.

Speaker #3: I believe our bus and technology is all satellite checked out rapidly. I mentioned in the comment, you know, up prepared that comments we have in the second half of the year, even quite dramatically improved the speed at which we are able to check out and pass things on.

Theresa Condor: When was the last transporter? One was at the end of November, I believe. Our satellite bus and technology is all checked out rapidly. I mentioned in the comment, the prepared comment, that we have, in the second half of the year, even quite dramatically improved the speed at which we are able to check out and pass things on once they go in orbit. So I have to say I'm very pleased at how that process has gone this year. I think we've done a fantastic job. But I would add on to that, Theresa, that T15 was postponed by, I want to say, eight weeks. Part of that was also the government shutdown in terms of their ability to be able to launch. And so that went up later than we had anticipated. Yeah. Yeah. I was okay. I got it. Yep. Okay.

When was the last transporter? One was at the end of November, I believe. Our satellite bus and technology is all checked out rapidly. I mentioned in the comment, the prepared comment, that we have, in the second half of the year, even quite dramatically improved the speed at which we are able to check out and pass things on once they go in orbit. So I have to say I'm very pleased at how that process has gone this year. I think we've done a fantastic job.

Speaker #3: Once they go in orbit . have to say , I'm very pleased at how process that has gone this year . I think we've done So I a fantastic job .

Speaker #6: But I would, I.

Speaker #4: Would add on to that . Teresa , that T15 was postponed . Why , why want to say eight weeks ? Part of that also the was government shutdown in terms of their ability to be able to launch .

Alison Engel: But I would add on to that, Theresa, that T15 was postponed by, I want to say, eight weeks. Part of that was also the government shutdown in terms of their ability to be able to launch. And so that went up later than we had anticipated.

Speaker #4: And so there was that went up later than we had anticipated.

Speaker #6: I was okay . I

Speaker #6: Yeah . Okay . then . and then just Yeah , yeah , two other brief ones , And if I could . Ali on the costs in terms of the expenses that are implied in the Q4 outlook , what exactly would you call unusual in there ?

Jeff Van Rhee: Yeah. Yeah. I was okay. I got it. Yep. Okay.

Theresa Condor: And then just two other brief ones, if I could. Ally, on the costs in terms of the expenses that are implied in the Q4 outlook, what exactly would you call unusual in there? I know you've got some lingering issues. Congrats. Seems like a light at the end of the tunnel here in terms of being able to just operate the company and not have sort of lingering restatement or just delayed financial issues. But can you talk to just the unusual expenses that are still sitting in that Q4 outlook that we should be aware of? Yep. It's primarily legal fees related to kind of non-operating matters, some professional services fees around continuing to utilize EY as a support partner on some of our technical matters, and some severance as we continue to work through certain business realignment post-maritime.

And then just two other brief ones, if I could. Ali, on the costs in terms of the expenses that are implied in the Q4 outlook, what exactly would you call unusual in there? I know you've got some lingering issues. Congrats. Seems like a light at the end of the tunnel here in terms of being able to just operate the company and not have sort of lingering restatement or just delayed financial issues. But can you talk to just the unusual expenses that are still sitting in that Q4 outlook that we should be aware of?

Speaker #6: I know you've got some lingering issues. Seems like there's a light at the end of the tunnel here in terms of being able to just—congrats.

Speaker #6: have , you and not know , sort of lingering restate just delayed financial issues , or but can you talk to just the unusual expenses that still sitting in are Q4 outlook that we should be aware of ?

Speaker #4: Primarily, that’s legal fees related to kind of non-operating matters. Some professional services fees are around continuing to utilize E as a support partner on some of our technical matters.

Alison Engel: Yep. It's primarily legal fees related to kind of non-operating matters, some professional services fees around continuing to utilize EY as a support partner on some of our technical matters, and some severance as we continue to work through certain business realignment post-maritime.

Speaker #4: And some , you know , severance as we , you know , continue to work through certain , you know , business realignment post maritime .

Speaker #4: So those are categories, Jeff, that we consider for these items.

Speaker #6: A number around unusual, kind of, that basket, able to put.

Speaker #4: For the fourth quarter... Yeah, I think it's different. Significantly, I don't—

Theresa Condor: So those are kind of the categories, Jeff, that we consider for these unusual items. And are you able to put a number around that basket? For Q4? Yeah. I don't think it's significantly different than Q3. Well, I guess what I'm wondering is I'm just trying to obviously, I got to do a 2026 model. I'm just wondering what of those are going to recur into the forward year, like into Q1 and beyond versus what you think goes away. They should definitely decrease in 2026. Okay. All right. And then just lastly, then on the pipeline, we've seen, especially in some of these space services contracts from some of the sort of the new space names, an incredible flow of massive eight, nine-figure deals that are out there, sovereigns, etc. I think you referenced you've got good relations in Germany.

So those are kind of the categories, Jeff, that we consider for these unusual items.

Jeff Van Rhee: And are you able to put a number around that basket?

Speaker #4: third quarter .

Speaker #6: Well, I guess what I'm wondering is, I'm just trying to—obviously, I've got to do a '26 model. I'm just wondering which of those are going to recur into the forward year.

Alison Engel: For Q4?

Jeff Van Rhee: Yeah.

Alison Engel: I don't think it's significantly different than Q3.

Jeff Van Rhee: Well, I guess what I'm wondering is I'm just trying to obviously, I got to do a 2026 model. I'm just wondering what of those are going to recur into the forward year, like into Q1 and beyond versus what you think goes away.

Alison Engel: They should definitely decrease in 2026.

Jeff Van Rhee: Okay. All right. And then just lastly, then on the pipeline, we've seen, especially in some of these space services contracts from some of the sort of the new space names, an incredible flow of massive eight, nine-figure deals that are out there, sovereigns, etc. I think you referenced you've got good relations in Germany.

Speaker #6: them you've got elsewhere eight in referenced , . Would And are you you maybe a second to just talk about what I would call sort of some of the take deals in mega the there ?

Speaker #6: How many, how late are they stage, any qualification, quantification would be great when you start thinking pipeline? About like eight and nine figure.

Theresa Condor: I know you've got them elsewhere. Would you maybe take a second and just talk about what I would call sort of some of the mega deals in the pipeline? Are they there? How many? How late stage? Any qualification quantification would be great when you start thinking about eight and nine-figure deals and what you're seeing out there. Yeah. I think the first comment that I want to make is that you have started to see some of these come out, and they've generally focused on the first areas where everyone is familiar when it comes to either talking about telecom or talking about imaging. That's the first place everyone goes when they start looking at satellites and sovereign capabilities. Then we see all of the RF come next.

I know you've got them elsewhere. Would you maybe take a second and just talk about what I would call sort of some of the mega deals in the pipeline? Are they there? How many? How late stage? Any qualification quantification would be great when you start thinking about eight and nine-figure deals and what you're seeing out there.

Speaker #6: What you're seeing out there—deals and...

Speaker #3: I think the first comment that I want to

Speaker #3: is have that you When see some started to Yeah , of these come out , and they generally focused on the where first areas everyone is familiar when it when it comes either to talking about talking imaging about that's , .

Theresa Condor: Yeah. I think the first comment that I want to make is that you have started to see some of these come out, and they've generally focused on the first areas where everyone is familiar when it comes to either talking about telecom or talking about imaging. That's the first place everyone goes when they start looking at satellites and sovereign capabilities. Then we see all of the RF come next.

Speaker #3: Telecom, or—and that's the first place everyone goes when they start looking at satellites and capabilities. And then sovereign, you see, we come next. And we've seen really a big uptick, even over the past six months, in all of these past types of government customers being interested in and appreciating the role that RF also has to play.

Theresa Condor: We've really seen a big uptick, even over the past six months, in all of these types of government customers being interested in and appreciating the role that RF also has to play. I mean, it's all the things that we've talked about in the other calls and other conversations. So what we are seeing, and I mentioned it briefly in the comments as well, is that there is a lot of interest in those types of sovereign capabilities specifically for RF. There is interest in direct data acquisition of installed capacity. And they often piggyback on each other. I expect that we see movement on all of these conversations happening in 2026. They're all gearing up to start making movements and putting money down. Okay. Great. Thank you for taking my questions. Thanks, Jeff. Thank you.

We've really seen a big uptick, even over the past six months, in all of these types of government customers being interested in and appreciating the role that RF also has to play. I mean, it's all the things that we've talked about in the other calls and other conversations. So what we are seeing, and I mentioned it briefly in the comments as well, is that there is a lot of interest in those types of sovereign capabilities specifically for RF. There is interest in direct data acquisition of installed capacity. And they often piggyback on each other. I expect that we see movement on all of these conversations happening in 2026. They're all gearing up to start making movements and putting money down.

Speaker #3: I mean, it's all that’s talked about in the other calls and other things that we've had conversations about. So what we are seeing, and I mentioned it briefly in the comments as well, is that there is a lot of interest in those types of sovereign capabilities, for RF.

Speaker #3: And there is specifically interest in direct data acquisition of installed capacity . And they often , you know , piggyback on each other and that I expect we see all of movement on these conversations I , happening in 2026 .

Speaker #3: They're all gearing up to start making movements and putting money down.

Speaker #6: Okay, great. Thank you for taking my question.

Speaker #3: Thanks , Jeff

Speaker #3: .

Speaker #1: Thank you. Our next question comes from the line of Andrew Steinhardt with Canaccord Genuity. Please proceed with your question.

Jeff Van Rhee: Okay. Great. Thank you for taking my questions.

Theresa Condor: Thanks, Jeff.

Speaker #7: This is great. Andrew on for Austin. Thank you for taking my questions. Just my first question here on MDA questions—the Shield program. Hi.

Operator: Thank you.

Theresa Condor: Our next question comes from the line of Andrew Steinhardt with Canaccord Genuity. Please proceed with your question. Great. Hi. This is Andrew on for Austin. Thank you for taking my questions. Just my first question here on the MDA Shield program selection. Of the 19 work areas mentioned in the RFP, which specifically was Spire selected as a potential provider for? And I guess since the MDA cut over 1,400 companies from the proposal list, can you detail what the selection process was like? I have to admit that I am not the expert deep in the details of that IDIQ Shield contract win that we have. We have a federal team that is focused on that. And I feel very good that we're in all the right conversations there. But I cannot directly myself detail in which all of the work areas. Ally, do you know that?

Our next question comes from the line of Andrew Steinhardt with Canaccord Genuity. Please proceed with your question.

Andrew Steinhardt: Great. Hi. This is Andrew on for Austin. Thank you for taking my questions. Just my first question here on the MDA Shield program selection. Of the 19 work areas mentioned in the RFP, which specifically was Spire selected as a potential provider for? And I guess since the MDA cut over 1,400 companies from the proposal list, can you detail what the selection process was like?

Speaker #7: Selection of you for the 19 work mentioned areas in the RFP, which specifically was selected as a potential provider for it.

Speaker #7: And since the MDA cut 1,400 companies from the proposal, can you detail what the list was, and go over the selection process?

Speaker #3: I have to admit that am I not the expert in the . Deep details of that ID , IQ shield contract . When that we have , we have a federal team that is focused on that , and I feel very good that we're in all the right reasons .

Theresa Condor: I have to admit that I am not the expert deep in the details of that IDIQ Shield contract win that we have. We have a federal team that is focused on that. And I feel very good that we're in all the right conversations there. But I cannot directly myself detail in which all of the work areas. Ali, do you know that?

Speaker #3: There . I can directly But myself detail which in all of the work areas I Ali , do you know that ? But I think we would have to come back to you with , with that type of detail .

Speaker #3: After checking with our federal team.

Speaker #4: Yeah . Ben and I were just caucusing . We don't we don't have the detail in us . front of that . Andrew

Theresa Condor: But I think we would have to come back to you with that type of detail after checking with our federal team. Yeah. Ben and I were just caucusing. We don't have the detail in front of us. Apologies for that, Andrew. No, no worries. I guess, would you be able to speak to the Shield program at all? I mean, maybe quantifying what portion of the $151 billion total contracting vehicle could be applicable to Spire? Honestly, I don't think I'm prepared to do that yet, and I'm not totally sure that anyone fully knows. I think the only thing that I can tell you is that we've already been having conversations with the right people post the award of that IDIQ contract. And I think it is just a testament to our strength and ability to really be a key partner in how this plays out.

But I think we would have to come back to you with that type of detail after checking with our federal team.

Speaker #7: No worries. Apologies for no. No, I guess. Would you—

Alison Engel: Yeah. Ben and I were just caucusing. We don't have the detail in front of us. Apologies for that, Andrew.

Speaker #7: to Shield would you be program at all ? able to like maybe quantifying the what I mean , portion of the $151 billion total contracting vehicle .

Andrew Steinhardt: No, no worries. I guess, would you be able to speak to the Shield program at all? I mean, maybe quantifying what portion of the $151 billion total contracting vehicle could be applicable to Spire?

Speaker #7: to spire applicable ?

Speaker #3: I don't think I'm honestly prepared to do that yet. And I'm not totally sure that anyone fully, I think, knows.

Speaker #3: The only thing that I’ll tell you is that we’ve already been having, with the right people, conversations post the CAN of that IDIQ contract, and I think it is testament to our strength and ability to just really be a key partner as this plays out.

Theresa Condor: Honestly, I don't think I'm prepared to do that yet, and I'm not totally sure that anyone fully knows. I think the only thing that I can tell you is that we've already been having conversations with the right people post the award of that IDIQ contract. And I think it is just a testament to our strength and ability to really be a key partner in how this plays out.

Speaker #3: What we're this doing with our Boulder manufacturing facility is really important . I think the investments we're on the making kind of cybersecurity and infrastructure resilience side are important , and I think it can also be some signaling as you start to see the European Space Shield effort that we're going to hear about start to next year as well .

Theresa Condor: What we're doing with our Boulder manufacturing facility is really important. I think the investments we're making on the kind of cybersecurity and infrastructure resilience side are important. I think it can also be some signaling as you start to see the European Space Shield effort that we're going to start to hear about next year as well. Gotcha. I appreciate that. I guess just a follow-up here. Could you provide an update on the SEC subpoena and how the response is going there? There's really not anything much to share other than we're just continuing to work through the process, Andrew. Gotcha. I'll pass it back there. Thanks. Thank you. Our next question comes from the line of Chris Quilty with Quilty Space. Please proceed with your question. Thanks. Just wanted to get a little clarification.

What we're doing with our Boulder manufacturing facility is really important. I think the investments we're making on the kind of cybersecurity and infrastructure resilience side are important. I think it can also be some signaling as you start to see the European Space Shield effort that we're going to start to hear about next year as well.

Speaker #7: Gotcha appreciate that . . guess just a follow up I here . Could you provide an update And I the SEC and how the response is going there on ?

Andrew Steinhardt: Gotcha. I appreciate that. I guess just a follow-up here. Could you provide an update on the SEC subpoena and how the response is going there?

Speaker #4: There's really not anything much to share, other than we're just continuing to work through the process. Andrew

Speaker #4: .

Speaker #7: Gotcha . I'll Thanks

Speaker #7: Pass it back there. Subpoena.

Alison Engel: There's really not anything much to share other than we're just continuing to work through the process, Andrew.

Speaker #3: .

Speaker #1: Thank you. Our next question comes from the line of Chris Quilty with Quilty Space. Please proceed with your question.

Andrew Steinhardt: Gotcha. I'll pass it back there.

Operator: Thanks. Thank you. Our next question comes from the line of Chris Quilty with Quilty Space. Please proceed with your question.

Speaker #8: Thanks. I wanted to get a little clarification. Just—you mentioned that impact of the, I think, government shutdown and of sort, revenue 25, a sense shifting in. Can you give us what the mix, and 26?

Chris Quilty: Thanks. Just wanted to get a little clarification.

Theresa Condor: I think you've mentioned the impact of the government shutdown and sort of revenue shifting in 2025 and 2026. Can you give us a sense of what the mix, the contribution mix of government will be? And probably at the end of 2026, since a good portion of the growth next year, the 30% growth that's coming from government on a pro forma basis. Ally, maybe you can take that one while I answer in general first for you, Chris. That is we talked about the Earth observation contract that is not yet signed and is in a delayed period. And that, as someone already mentioned, is delivery of data, really quick, direct revenue as we deliver every month. So that had an impact on us. Normally, that is a $7 million contract for us.

I think you've mentioned the impact of the government shutdown and sort of revenue shifting in 2025 and 2026. Can you give us a sense of what the mix, the contribution mix of government will be? And probably at the end of 2026, since a good portion of the growth next year, the 30% growth that's coming from government on a pro forma basis.

Speaker #8: It will be government, and probably at the end, since a good portion of the growth next year, of 2026, of the 30% growth, that's coming from government.

Speaker #8: On a pro forma basis.

Speaker #3: Yeah . I mean , maybe you can you take that one while I answer in in generality first for you , can Chris , that , you know , we talked about the the Earth is observation contract is that is .

Theresa Condor: Ali, maybe you can take that one while I answer in general first for you, Chris. That is we talked about the Earth observation contract that is not yet signed and is in a delayed period. And that, as someone already mentioned, is delivery of data, really quick, direct revenue as we deliver every month. So that had an impact on us. Normally, that is a $7 million contract for us.

Speaker #3: not That yet signed . And , you know , is in a delayed period and that , you know , already mentioned , is delivery of data really quick direct revenue as we deliver it every month .

Speaker #3: So that that had an impact on us . You know , normally that is a $7 million us . We also , as Ali mentioned , contract for did have the delay of that transporter launch , which as as those go up and out and things get operational , there is a certain we start portion of that as translates delivering data revenue .

Theresa Condor: We also, as Ally mentioned, did have the delay of that transporter launch, which, as those go up and things get out and operational, there is a certain portion of that as we start delivering data that translates into revenue. Then there are other things that just didn't get signed in the quarter during the government shutdown piece. Overall, we talked about more than $10 million that is shifted from 2025 into 2026. We're not giving direct guidance for 2026 right now; that will come in the March period, other than to say that we feel very comfortable saying in excess of 30% year-on-year revenue growth. Yes, government will continue to be an important portion of that. Ally, I don't know if you have anything that you want to add that is more detailed than that. No, no. I think you covered the highlights, Theresa. Okay.

We also, as Ally mentioned, did have the delay of that transporter launch, which, as those go up and things get out and operational, there is a certain portion of that as we start delivering data that translates into revenue. Then there are other things that just didn't get signed in the quarter during the government shutdown piece. Overall, we talked about more than $10 million that is shifted from 2025 into 2026. We're not giving direct guidance for 2026 right now; that will come in the March period, other than to say that we feel very comfortable saying in excess of 30% year-on-year revenue growth. Yes, government will continue to be an important portion of that. Ali, I don't know if you have anything that you want to add that is more detailed than that.

Speaker #3: And then there are other things that just didn't get signed in the quarter. During the government shutdown piece, we overall talked about more than $10 million.

Speaker #3: That is shifted from 2025 into 2026. And we're not giving direct guidance for 2026 right now. That will come in the March period.

Speaker #3: Other than to say that we feel very comfortable saying in excess of 30% year-on-year revenue growth, and yes, government will continue to be an important portion of that.

Speaker #3: I don't know if you have anything that you want to add that is more detailed than that.

Speaker #4: No , no , I think I think you covered the highlights . Teresa .

Speaker #8: Okay. And maybe if I could reframe it in a different way, when you think about what types of applications or which applications are going to be the biggest drivers in '26, is it more programs, or is it services, or is it the space business?

Alison Engel: No, no. I think you covered the highlights, Theresa.

Chris Quilty: Okay. And maybe if I could reframe it in a different way. When you think about what types of applications or which applications are going to be the biggest drivers in 2026, is it more on weather programs? Is it on the space services business? Is it the radio frequency mapping? Or does some of the aircraft tracking start to pick up? Just in terms of raw revenue or even dollar contribution.

Theresa Condor: And maybe if I could reframe it in a different way. When you think about what types of applications or which applications are going to be the biggest drivers in 2026, is it more on weather programs? Is it on the space services business? Is it the radio frequency mapping? Or does some of the aircraft tracking start to pick up? Just in terms of raw revenue or even dollar contribution. Yeah. So what I can tell you is all of those areas I consider incredibly important and contributing to our revenue growth. We talked about the $70 million already that is kind of contracted, and then we just deliver on it while we and then start to recognize the revenue. Aviation has generally been our smallest business, but it continues to be important.

Speaker #8: Is it the mapping or radiofrequency that the aircraft do tracking start to pick up in terms of raw, just of EBITDA contribution revenue, or?

Speaker #3: Yeah. What I can tell you is all of those areas are considered incredibly important and are contributing to our revenue growth. We talked about $70 million already.

Theresa Condor: Yeah. So what I can tell you is all of those areas I consider incredibly important and contributing to our revenue growth. We talked about the $70 million already that is kind of contracted, and then we just deliver on it while we and then start to recognize the revenue. Aviation has generally been our smallest business, but it continues to be important.

Speaker #3: That is the 7 million , kind of contracted . And then we just deliver on it while we , you know , and then start to recognize the revenue .

Speaker #3: Aviation , you know , has generally been our smallest business . But it continues to be important . It continues to be important as we deliver on the program , which generates revenue for us .

Speaker #3: And on the weather . The weather side with , we build NOAA relationship and see continue to leaning in towards commercial out that partnerships .

Theresa Condor: It continues to be important as we deliver on the Eurialo program, which generates revenue for us. On the weather side with NOAA, we continue to build out that relationship and see NOAA leaning in towards commercial partnerships across a variety of areas. I do think that that NOAA relationship will continue to be important. On the civil side of things, I do think that radio frequency geolocation is going to be an important part of that growth. And that can be either delivery of data sets directly from the capacity that we have on orbit. And then when you start to talk about areas where we have a presence, we have the local manufacturing capability, then you start to talk about sovereign capabilities, which might fit more in the space services category. Gotcha. Also, a question on a statement you had earlier in the script.

It continues to be important as we deliver on the Eurialo program, which generates revenue for us. On the weather side with NOAA, we continue to build out that relationship and see NOAA leaning in towards commercial partnerships across a variety of areas. I do think that that NOAA relationship will continue to be important. On the civil side of things, I do think that radio frequency geolocation is going to be an important part of that growth. And that can be either delivery of data sets directly from the capacity that we have on orbit. And then when you start to talk about areas where we have a presence, we have the local manufacturing capability, then you start to talk about sovereign capabilities, which might fit more in the space services category.

Speaker #3: You know , across the variety of areas . So I think that do NOAA relationship will continue to be important . So on the on the civil side of things , I do think that radio , geo frequency location is going to be an important part of that growth .

Speaker #3: And that of data sets directly from the capacity that we have on orbit . And then when you start to talk about areas where we have a have the local presence , we manufacturing capability , then you start to talk about sovereign capabilities , which , you know , might fit more in the space services category .

Speaker #8: Gotcha. Also, a question regarding a statement you had earlier in the script. You mentioned that you basically doubled the production on the same headcount, just generically.

Chris Quilty: Gotcha. Also, a question on a statement you had earlier in the script.

Speaker #8: that , you what know , were the factors driving the efficiency ? Was it , you know , outsourcing ? Was it vertical integration ?

Theresa Condor: You mentioned that you basically doubled the production on the same headcount. Just generically, what were the factors driving efficiency? Was it outsourcing? Was it vertical integration? Was it AI, 3D printing? Yeah. I mean, we mentioned these phrases, design for manufacturability and lean principles. So a lot of it was things like looking at the flow of how we did things, looking at how we did the testing, what was the timing of testing, how did we use the time? Otherwise, when we had some satellites in certain testing facilities, how did we do the timing? Then inside the clean room, how did the actual engineers who designed things interact with the people doing the manufacturing? So it's a lot about how they better managed and led the whole flow inside the clean room.

You mentioned that you basically doubled the production on the same headcount. Just generically, what were the factors driving efficiency? Was it outsourcing? Was it vertical integration? Was it AI, 3D printing?

Speaker #8: Was it AI printing? You know.

Speaker #3: I Yeah . mean , it was we mentioned these phrases design for manufacturability and lean principles . So a it was was lot of things like the flow looking of how we did things at at how we did testing , the what , looking timing of testing , how did we use the time , you know , otherwise when we had some satellites in testing certain facilities , how did we do the timing ?

Theresa Condor: Yeah. I mean, we mentioned these phrases, design for manufacturability and lean principles. So a lot of it was things like looking at the flow of how we did things, looking at how we did the testing, what was the timing of testing, how did we use the time? Otherwise, when we had some satellites in certain testing facilities, how did we do the timing? Then inside the clean room, how did the actual engineers who designed things interact with the people doing the manufacturing? So it's a lot about how they better managed and led the whole flow inside the clean room.

Speaker #3: Then inside the clean room , did the how actual designed engineers who things interact with the the people doing the manufacturing ? So it's a lot about how they better managed and led the whole flow inside the clean room .

Speaker #3: And I think , you know , start , this is a when we is we had talked about a lot , even at the beginning of the year around this scaling begun .

Speaker #3: Aspects of efficiency—and I'm really proud of the team for having done this without adding cost to it. But I don't think we're done in efficiency out of that system.

Theresa Condor: I think when we start, this is a process that has begun, and we had talked about a lot even at the beginning of the year around the scaling and efficiency aspects. I'm really proud of the team of having done this without adding cost to it. But I don't think we're done in pulling efficiency out of that system. There are a lot of these other things, like you mentioned, that can help us keep doing that in the future. But what we did this year, I would say, is basic lean manufacturing and closer integration between the design teams and the manufacturers. Gotcha. When you say operating cash flow positive exiting 2026, do you see any change in the CapEx profile of the business, and when should we look at free cash flow?

I think when we start, this is a process that has begun, and we had talked about a lot even at the beginning of the year around the scaling and efficiency aspects. I'm really proud of the team of having done this without adding cost to it. But I don't think we're done in pulling efficiency out of that system. There are a lot of these other things, like you mentioned, that can help us keep doing that in the future. But what we did this year, I would say, is basic lean manufacturing and closer integration between the design teams and the manufacturers.

Speaker #3: And there are a lot of these and other things pulling, like you mentioned, that us keep doing can help that in the future.

Speaker #3: what we But did this year , I would is , is basic say lean manufacturing and closer integration between the design teams and the manufacturers .

Speaker #8: Gotcha. And when you say operating cash flow positive, exiting '26, do you see any change in the CapEx profile of the business, and when should we look at free cash flow?

Chris Quilty: Gotcha. When you say operating cash flow positive exiting 2026, do you see any change in the CapEx profile of the business, and when should we look at free cash flow?

Speaker #4: Definitely, we see lower CapEx needs right now in our preliminary 2026 planning, and that's both Aspire-funded CapEx as well as customer CapEx.

Theresa Condor: Definitely, we see lower CapEx needs right now in our preliminary 2026 planning. That's both Spire-funded CapEx as well as customer-funded CapEx. So we are obviously very focused on becoming operating and free cash flow positive. I think we've got to get over the operating cash flow first and then go from there. We are seeing a lower level of projected spend right now where we're at in the 2026 planning process. Great. Thanks a bunch. Thanks, Chris. Thank you. Ladies and gentlemen, this concludes our Q&A session, and we'll conclude our call today. We thank you for your interest and participation. You may now disconnect your lines.

Alison Engel: Definitely, we see lower CapEx needs right now in our preliminary 2026 planning. That's both Spire-funded CapEx as well as customer-funded CapEx. So we are obviously very focused on becoming operating and free cash flow positive. I think we've got to get over the operating cash flow first and then go from there. We are seeing a lower level of projected spend right now where we're at in the 2026 planning process.

Speaker #4: And so, you know, we are very focused, obviously, on becoming operating and free cash flow positive. We've got to get, I think, the cash operating flow first, and then go from there.

Speaker #4: But we are seeing a lower level of projected spend, right, than where we're at in the 2026 planning process.

Speaker #8: Great. Thanks a bunch.

Speaker #4: Thanks , Chris .

Speaker #1: Thank you, ladies and gentlemen. This concludes our Q&A session, and we'll conclude our call today. We thank you for your interest and participation.

Chris Quilty: Great. Thanks a bunch.

Operator: Thanks, Chris. Thank you. Ladies and gentlemen, this concludes our Q&A session, and we'll conclude our call today. We thank you for your interest and participation. You may now disconnect your lines.

Q3 2025 Spire Global Inc Earnings Call

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