Guidance Intact Despite CSA Termination, Weather and RFGL Strength Support H2 Step-up
 
Results beat. Q1 revenue declined 34% y/y to $15.8M, reflecting the maritime exit, but still came in 5% ahead of consensus. Maritime contributed $1.9M in the quarter. Ex-maritime, core revenue grew 13% y/y to $13.9M, led by civil government weather data purchases under NOAA’s RO and ocean winds awards secured in Sept’25.
 
Profits still away. Adj. EBITDA loss widened to $10.2M despite gross margin expanding 3.3 pp y/y to 40%, as the loss of maritime revenue ($9.7M) and elevated legal/professional costs ($5.8M) continued to weigh on profitability. The loss was broadly in line with expectations, with management still targeting breakeven between 4Q26 and 1Q27.
 
CSA Termination. EoP backlog declined 8% q/q to $185M, largely reflecting Q1 revenue conversion. Of this, $62M was expected to convert within 12 months, but the CSA termination in Apr’26 reduced that near-term bucket by $8M to ~$54M. To meet 2026 guidance, Spire now needs stronger H2 conversion, with the $150M NOAA pipeline becoming a key execution catalyst for the year.