Space42 advances strategy execution with solid Q1 2025 results
Strong balance sheet, USD 895 million in cash and nearly USD 7 billion in contracted future revenue reinforce strategic flexibility
Abu Dhabi, UAE: Space42 PLC (' Space42 ' or the ' Company '), the UAE-based AI-powered SpaceTech company that seamlessly integrates satellite communications, geospatial analytics, and artificial intelligence capabilities for customers globally, and listed on the Abu Dhabi Securities Exchange (' ADX ', under symbol: SPACE42, ISIN: AEE01122B228), today announced its pro forma consolidated financial results for Q1 2025.
Since its launch in October 2024, Space42 has continued to execute across its four strategic growth pillars, building the operational and financial foundation needed to scale globally. In Q1 2025, revenue reached USD 115 million, down 13% year-on-year due to milestone timing shifts within Bayanat Smart Solutions and while it undergoes its transformation towards programmatic market engagement. Despite this, the Company maintained a strong Normalized EBITDA margin of 53% and delivered a Normalized Net Profit of USD 30 million, in line with Q1 2024. The margin on a normalized basis improved by three percentage points to 26%.
Space42 closed the first quarter with USD 895 million in cash and short-term deposits, contracted future revenues of nearly USD 7 billion, and tangible progress across each of its four strategic pillars, enabling it to continue scaling decisively and to capture the next wave of opportunity in SpaceTech.
Positioned for Sustainable, Scalable Growth
Karim Sabbagh, Managing Director of Space42, commented, "We entered 2025 with a clear strategy and a platform built to scale. This quarter reinforced our discipline on margins, the momentum across our four strategic pillars and our focus on long-cycle delivery.
We launched new assets in space, expanded coverage, and advanced programs that strengthen sovereign capabilities and position us to scale internationally. We are executing a model anchored in differentiated infrastructure and downstream applications in satellite communications and AI-enabled geospatial analytics.
Our focus is on programmatic and long-term engagements with our key customers. This go-to-market approach is well established within Yahsat Space Services, and the appropriate transformation is underway within Bayanat Smart Solutions.
Our strategy is demonstrated by the dual-use satellite communication and earth observation platforms we are building and the differentiated outcomes we are delivering across national and international markets, with the latter segment to grow in relevance over time. That is how we create enduring value."
Delivering Across Four Strategic Pillars
Space42's disciplined execution continues to drive momentum across its four pillars:
Preferred Partner for Premium Geospatial Data
Launched Foresight-1 and Foresight-2 satellites, laying the foundation for a scalable Earth Observation constellation that strengthens coverage and revisit rates.
Synthetic Aperture Radar (SAR) manufacturing facility is on track to begin production in H2 2025, enabling sovereign production of high-resolution satellites and ensuring full deployment of Foresight-3, -4, and -5.
High Altitude Platform Stations (HAPS) development site in Abu Dhabi is to be operational by June 2025. First in the region, the new facility will deliver more than 20 HAPS unmanned aircraft vehicles annually, supporting civil, environmental, and defense applications.
Global Leader in Geospatial Intelligence AI Platform Services
GIQ platform is being scaled as the digital backbone for real-time, AI-powered geospatial analytics, enabling fast, informed decision-making across civil and defense use cases.
MoU signed with FADA and EDGE to establish a national geospatial ecosystem and unlock downstream applications in surveillance, environmental intelligence, and secure mobility, with a total value exceeding USD 100 million.
Global Leader in Non-Terrestrial Connectivity (NTN)
Thuraya-4 launched successfully; now in-orbit and on track for commercial service in H2 2025. The satellite enables a next-generation mobility platform and a suite of new products offering wider coverage, faster speeds, and enhanced capabilities.
MOU signed with Viasat to co-develop a shared multi-orbit standard-based 5G NTN open architecture, creating a globally scalable platform for direct-to-device (D2D) and MSS services.
IP Neo broadband terminal launched in Q1, addressing connectivity needs for critical infrastructure, logistics, and maritime sectors across underserved geographies.
Thuraya One smartphone introduced as a commercial precursor to full D2D rollout, providing seamless integration of satellite and terrestrial networks through a single consumer-grade device.
Trusted Leader in Secure Connectivity
Al Yah 4 and Al Yah 5 satellite programs progressing on schedule and within budget; several units are now in testing phase, with satellite launches planned for 2027 and 2028. These assets will enhance national secure communication capabilities across defense and civil domains
Thuraya-3 service partially restored across key markets through rapid redeployment of redundant capacity, underscoring operational agility and Space42's commitment to service continuity
Key Financial Highlights
Metric
Result
Revenue
USD 115 million (-13% YoY)
Normalized Net Profit
USD 30 million (in line with Q1 2024 at USD 30
Million); margin up 3 pp to 26%
Normalized EBITDA
USD 61 million (-14% YoY)
Cash CapEx
USD 74 million
Cash / Short-Term Deposits
USD 895 million
Negative Net Debt
USD 488 million
Net Leverage Ratio
-1.8x
Contracted Future Revenues
Nearly USD 7 billion
The full set of financial disclosures can be found within the Investor Relations section on Space42's website.
The financial information presented in this press release has been prepared on a pro forma basis. This has been done to facilitate like-for-like comparison of financial performance of the combined Company.
About Space42
Space42 (ADX: SPACE42) is a UAE-based AI-powered SpaceTech company that integrates satellite communications, geospatial analytics and artificial intelligence capabilities to enlighten the Earth from space. Formed in 2024 by the successful merger of Bayanat and Yahsat, Space42's global reach allows it to address the rapidly evolving needs of its customers in governments, enterprises, and communities. Space42 comprises two business units: Yahsat Space Services and Bayanat Smart Solutions. Yahsat Space Services focuses on upstream satellite operations for both fixed and mobility satellite services. Bayanat Smart Solutions integrates geospatial data acquisition and processing with AI to inform decision-making, enhance situational awareness, and improve operational efficiency. Major shareholders include G42, Mubadala, and IHC.
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