Highlights

  • Two brokers issue buy ratings on 1Spatial.
  • Target prices set at AUD 1.94 and AUD 1.54, implying 80.95% and 42.86% upside respectively.
  • Interim results show 9% revenue growth to £17.7 million.
  • Recurring revenue rises 20%, now 61% of total revenue.
  • Annualised Recurring Revenue (ARR) increases 11% to £19.9 million.

1Spatial (LSE:SPA) continues to attract positive analyst support. Canaccord Genuity assigned a buy rating on 1Spatial with a target price of AUD 1.94, reflecting an 80.95% increase from current levels. Similarly, Panmure Liberum issued a buy rating with a target of AUD 1.54, indicating a 42.86% upside.

Interim Results

For the first half of FY2026, 1Spatial delivered 9% revenue growth to £17.7 million, up from £16.2 million in H1 2025. The improvement was largely driven by a 20% increase in recurring revenue to £10.7 million, now accounting for 61% of total revenues.

Revenues from SaaS and Term Licences rose 50%, supported by a fourfold increase in 1Streetworks revenue to £0.8 million from £0.2 million a year earlier. The Company’s Annualised Recurring Revenue (ARR) also climbed 11% to £19.9 million.

Adjusted EBITDA margin stood at 11.9%, slightly down by 0.4 percentage points, reflecting a temporary shift in revenue mix. Despite a rise in net borrowings to £2.5 million from £0.9 million, the Group reduced cash outflows to £1.5 million, aided by favourable timing of receipts and payments.

Strategic Contracts 

During the reporting period, 1Spatial secured several multi-year licence deals with major clients, including US$1.1 million with Montana, and £1.1 million each with Defra and Network Rail.

Following the period end, the Company signed a US$1.7 million enterprise agreement and a £1 million 1Streetworks contract.

The Board noted a positive start to the second half, citing major contract renewals and expansions across key regions. With a healthy order book and a positive pipeline, management remains confident of meeting FY26 expectations.

Positive Outlook for FY2026

1Spatial enters the second half of FY2026 with visibility and momentum. The company plans to maintain cost discipline and focus on cash conversion, while continuing targeted investments in growth areas such as 1Streetworks, its US expansion strategy, and the next generation of its LMDM platform.