Image: Space42
Space42, the UAE-based AI-powered space technology company listed on the Abu Dhabi Securities Exchange, reported consolidated revenue of $363m for the first nine months of 2025, down 15 per cent year on year as the company continues a strategic and operational transformation of its Smart Solutions business.
The revenue decline reflected a refocus of Smart Solutions on programmatic engagements aligned with its core capabilities in Earth observation, geospatial analytics and AI.
Space Services, its largest business unit, increased third-quarter revenue by 11 per cent versus the previous quarter, driven by a new $700m, 15-year government contract that began July 1 following the successful launch of Thuraya-4, and double-digit growth in Managed Solutions.
The company said the momentum is expected to continue as new defence and commercial applications roll out.
Space42 closed the period with $755m in cash and short-term deposits, contracted future revenue of $6.7bn, and a newly secured $696m ECA-backed financing facility for the Al Yah 4 and Al Yah 5 satellite programme.
In October, it received a further $300m advance from the UAE government as part of a $5.1bn, 17-year contract, providing additional balance-sheet capacity to execute its strategy.
“Since the formation of Space42 one year ago, we have laid the foundation for sustainable growth,” said MD Karim Sabbagh. “We have strengthened our dual-use capabilities, optimised our cost base, and continue to transition the Smart Solution business to programmatic engagements aligned to our strategic capabilities of Earth observation, geospatial analytics and AI, whilst retiring legacy non-aligned projects.”
He added that both business units delivered quarter-on-quarter growth while advancing key initiatives such as Equatys, a Direct-to-Device connectivity system expected to transform the company’s growth trajectory.
Read: Space42 launches next-gen Thuraya-4 and expands Foresight Constellation with three new satellites
Delivering across four strategic pillars and sector priorities
Preferred partner for premium geospatial data
• Continued deployment of the Foresight system after the successful launch of Foresight-3, -4 and -5 satellites in November, developed with ICEYE and tested at the Middle East’s first commercial Synthetic Aperture Radar satellite manufacturing facility with ADIO support.
• Signed an MoU with Microsoft and Esri for a five-year collaboration to deliver high-resolution base maps across 54 African countries, supporting infrastructure development and investment decisions.
Global leader in geospatial intelligence AI platform and services
• Continued scaling of the GIQ platform, launched on Microsoft Azure Marketplace with the UAE Space Agency, expanding Smart Solutions’ AI-powered geospatial intelligence globally.
• Developed AI-integrated capabilities including advanced command-and-control systems and unmanned sensing technologies.
Global non-terrestrial connectivity (NTN) leader
• Began Thuraya-4 services July 1, supported by a $700m, 15-year government contract and 16 new products.
• Announced Equatys, with Viasat, for Direct-to-Device connectivity, using 5G NTN open architecture and over 100 MHz of harmonised spectrum. e& UAE became the first mobile network operator to sign an MoU for UAE deployment.
Trusted leader in secure connectivity
• Al Yah 4 and Al Yah 5 programme remains on schedule and budget, backed by a $5.1bn, 17-year government contract expected to generate $300m in annual revenue from Q4 2026.
• Secured a $696m ECA-backed financing facility arranged by international banks.
Regional leader in autonomous mobility
• Signed a long-term deal with Dynamic Map Platform to provide LiDAR point-cloud data for GM’s Super Cruise driver-assistance system in the UAE.
• Announced development of the UAE’s first Sovereign Mobility Cloud with Core42 and Microsoft.
• Signed an MoU with South Korea’s Autonomous A2Z to form an Abu Dhabi-based joint venture deploying Level-4 autonomous driving across the Middle East and Africa.
Financial highlights
| Metric | Result |
|---|---|
| Revenue | $363m (-15 per cent YoY) |
| Normalised EBITDA | $158m (-22 per cent YoY), 43 per cent margin |
| Normalised Net Profit | $61m (-35 per cent YoY), 17 per cent margin |
| Cash CapEx | $217m |
| Cash / Short-Term Deposits | $755m |
| Negative Net Debt | $418m |
| Net Leverage Ratio | -1.7× |
| Contracted Future Revenue | $6.7bn |
