Spire Q2 2026 Earnings: Core Revenue Grew but Gross Margin Fell

Spire Global (NYSE: SPIR) reported Q2 2026 revenue of $18.0 million, down 6% from $19.2 million a year earlier, and a diluted loss per share of $0.52, compared with diluted earnings per share of $3.72. The prior-year result included a $154.3 million gain on the maritime business sale, while this quarter’s adjusted EBITDA loss narrowed 16% despite a sharp decline in gross margin. Operating cash use also improved, but remained substantial at $23.4 million.

Core earnings data

The headline revenue decline primarily reflected the April 2025 divestiture of most of Spire’s maritime business. Excluding maritime revenue, the company said revenue increased 16% year over year and 19% sequentially, supported by additional Space Services data deliveries and higher radio-frequency geolocation, or RFGL, data purchases.

Profitability presented a mixed picture. The WildFireSat contract cancellation reduced gross margin, while lower operating expenses helped narrow the operating and adjusted EBITDA losses.

Adjusting the prior-year net income for the maritime sale gain and a $12.0 million debt-extinguishment loss, Spire said its Q2 net loss improved 12% year over year.

Business and operating developments

Spire added four international RFGL customers during the quarter. Higher RFGL data purchases were one of the factors behind the company’s growth excluding maritime revenue, although it did not disclose revenue for RFGL or other individual businesses.

The company also announced partnerships with Schaeffler and Diehl Defence aimed at expanding its position in European space and defense programs. No contract values or near-term revenue contributions were disclosed.

After the quarter ended, Spire launched 10 satellites in July, bringing its 2026 total to 29. It also established its first cross-plane laser connection between two satellites equipped with optical inter-satellite links. The connection remained stable for more than five minutes across approximately 5,000 kilometers, demonstrating technology intended to enable faster and more secure orbital data transfers.

Profitability, cash flow, and the balance sheet

Total GAAP operating expenses declined about 21% to $26.1 million from $32.9 million. Research and development, sales and marketing, and general and administrative expenses all decreased, helping the operating loss and adjusted EBITDA loss improve even as gross profit contracted.

Q2 operating cash use of $23.4 million improved 32% year over year and 11% sequentially. However, operating cash use for the first six months increased to $49.6 million from $43.5 million, showing that the better Q2 trend had not yet produced a year-to-date improvement. Management expects operating cash use to continue improving sequentially in the third and fourth quarters.

Spire ended June with $91.7 million in cash, cash equivalents, and marketable securities and no debt. First-half liquidity was supported by $65.4 million of proceeds from securities purchase agreements. Basic weighted-average shares increased to 38.3 million in Q2 from 31.4 million a year earlier.

Core revenue growth did not prevent a gross-margin setback

Spire’s reported 6% revenue decline obscured growth in the businesses it retained after selling most of maritime. Revenue excluding maritime rose 16% year over year, while total revenue increased 14% sequentially and ex-maritime revenue increased 19% sequentially.

That growth did not translate into stronger gross profitability. Spire attributed the 16-percentage-point decline in GAAP gross margin to the WildFireSat contract, which was canceled for convenience during the quarter. Non-GAAP gross margin also fell 14 percentage points to 38%.

Lower operating expenses provided a partial offset, allowing both the GAAP operating loss and adjusted EBITDA loss to narrow. The next key test is whether revenue growth and continued expense control can improve losses after the WildFireSat impact while reducing cash consumption.

Earnings guidance

Spire reaffirmed its full-year 2026 revenue range of $75 million to $85 million. The company expects revenue excluding maritime to increase 42% to 61%, with growth exceeding 50% at the midpoint of guidance.

Recent insider transactions

The supplied insider-transaction data reports 13 purchases totaling 1,130,794 shares and 15 sales totaling 520,444 shares over the last two years, producing net purchases of 610,350 shares. The latest entries consisted mainly of equity grants, a derivative-security exercise, and three sales; grants should not be interpreted as open-market purchases.

The source did not specify a currency for the reported prices and transaction values, so the figures below are reproduced without currency symbols.

These transactions do not, by themselves, establish insiders’ views about Spire’s prospects.

Risks investors need to watch

• Contract-related margin pressure: The WildFireSat cancellation reduced both GAAP and non-GAAP gross margins, demonstrating how contract changes can affect profitability even when retained businesses are growing.
• Execution required to reach guidance: First-half revenue was $33.9 million, meaning Spire needs approximately $41.1 million to $51.1 million of second-half revenue to reach its full-year range.
• Continued cash consumption: Q2 cash use improved, but first-half operating cash outflow was $49.6 million. Sustained improvement in the second half is important for preserving liquidity.
• Equity financing and dilution: First-half cash resources benefited from securities issuance, while Q2 basic weighted-average shares increased materially from the prior year.

Summary

Spire’s Q2 2026 results showed underlying revenue growth after adjusting for the maritime divestiture, but the WildFireSat cancellation sharply reduced gross margin. Expense reductions narrowed operating and adjusted EBITDA losses, and quarterly cash use moved in the right direction, although first-half cash consumption remained elevated. The main issues for upcoming quarters are execution against the reaffirmed revenue range, recovery in gross profitability, and management’s expected sequential improvement in operating cash flow.