Space services revenue increased 15%, while future contracted revenue reached $6.4 billion.
Dubai: Space42 posted higher first-quarter revenue and strong margins, driven by a record quarterly performance in its Space Services division and sustained demand from government clients.
The Abu Dhabi-listed AI-powered SpaceTech company said revenue reached $116 million in the three months to March 31, 2026, supported by a 15% increase in Space Services revenue. The division delivered its strongest first-quarter performance, marking a fourth consecutive quarter of revenue growth.
The performance was driven by government business, supported by a $700 million, 15-year capacity services contract that began on July 1, 2025, following the launch of the Thuraya-4 satellite.
Space42 said the growth momentum is expected to continue through 2026 as new government and commercial applications are rolled out.
Space Services drives growth
Space Services remains the company’s primary growth engine, with Thuraya-4 operations continuing to ramp up. The satellite is one of the largest geostationary mobile satellite services platforms ever built and is tied to most of the 16 new products expected to drive revenue growth from 2026.
Space42 also advanced the formation of Equatys with Viasat, a partnership aimed at delivering direct-to-device satellite connectivity at global scale. The platform will use standards-based 5G non-terrestrial network technology to support mobile network operators and extend coverage to remote and underserved regions.
The company said Equatys will be backed by more than 100 MHz of globally harmonised spectrum, a partner-led commercial model, and a scalable global architecture.
Strong cash position
Space42 ended the quarter with more than $1 billion in cash and $6.4 billion in contracted future revenues, providing financial strength to execute its long-term strategy.
The company’s strong balance sheet comes as it continues investing in satellite infrastructure, AI-enabled geospatial platforms, secure connectivity, and autonomous mobility partnerships.
Karim Michel Sabbagh, Managing Director of Space42, said, “In Q1 2026, Space42 maintained momentum with another quarter of year-on-year revenue growth, strict cost discipline, and a strong focus on strategic execution. The business delivered solid financial performance during a period of regional unrest, reflecting the resilience of our operating model and the strong foundations we have built.”
He added, “This performance also highlights the dual-use nature of Space42. Space Services achieved its highest-ever first-quarter revenue, while Smart Solutions continued its strategic shift toward programmatic, higher-value engagements aligned with our core capabilities. We continue to invest in the infrastructure, partnerships, and capabilities that will define Space42 in the years ahead.”
Smart Solutions refocuses
Smart Solutions continued its strategic and operational transformation during the quarter, focusing on scalable engagements in Earth observation, geospatial analytics, and AI.
Space42 completed in-orbit testing of the Foresight-3, Foresight-4, and Foresight-5 satellites, developed in collaboration with ICEYE and launched in November 2025. Commercial operations are expected to begin in the second quarter of 2026, further strengthening the company’s dual-use geospatial capabilities.
The company also signed a memorandum of understanding with the International Fund for Houbara Conservation to deploy aerial imaging and unmanned aerial systems for wildlife monitoring and biodiversity protection. The initiative will use high-resolution imagery combined with AI analytics.
Space42 also advanced the development of Mira Aerospace’s ApusNeo18 and next-generation ApusNeo30 high-altitude platform systems, positioning the business for expanded commercial deployment.
AI platform expands
Space42 continued to scale its GIQ platform, which is now available on the Microsoft Azure marketplace. The platform has been enhanced with purpose-built applications covering disaster management, infrastructure monitoring, defence, and security.
The company’s growth strategy is built around four core pillars: premium geospatial data, geospatial intelligence AI platforms, non-terrestrial connectivity, and secure connectivity. Autonomous mobility has also been identified as a strategic priority.
In secure connectivity, Space42 said the Al Yah 4 and Al Yah 5 satellite programme remains on schedule and within budget. The programme is backed by a $5.1 billion, 17-year government contract.
The company has completed the spacecraft preliminary design review, with the critical design review expected in the first half of 2026. The next-generation satellites are expected to enhance national secure communications for defence and civil applications, generating $300 million in annual revenue from the fourth quarter of 2026.
Space42 is also advancing its non-geostationary broadband capabilities through a multi-orbit strategy spanning low Earth orbit and medium Earth orbit systems. The approach is designed to complement the Al Yah 4 and Al Yah 5 programme while enabling low-latency communications.
Abu Dhabi mobility push
Space42 also expanded its autonomous mobility partnerships during the quarter.
The company signed an agreement with Abu Dhabi Mobility to develop a sovereign integrated mapping platform for Abu Dhabi. The platform is expected to support decision-making across transport, infrastructure, environmental planning, and smart city development.
In a separate deal, Autonomous A2Z will work with Space42 to establish an Abu Dhabi-based entity focused on deploying Level-4 autonomous driving solutions across the Middle East and Africa.
Space42 also signed an agreement with Abu Dhabi Police to develop smart security and autonomous vehicle systems, supporting the expansion of AI-driven mobility solutions and smart mobility infrastructure.
