Spire Global, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income (loss) before income taxes consisted of the following (in thousands):


	Year Ended December 31,
	2025		2024
Domestic income (loss)	$	24,474	$	(77,665	)
Foreign income (loss)		30,442		(25,535	)
Income (loss) before income taxes	$	54,916	$	(103,200	)

Summary of Income Tax Provision

The income tax provision consists of the following (in thousands):


	Year Ended December 31,
	2025		2024
Current income tax provisions:
Federal	$	—	$	—
State		628		66
Foreign		1,220		41
Current income tax provision		1,848		107
Deferred income tax expense:
Federal		—		—
State		—		—
Foreign		1,763		52
Deferred income tax expense		1,763		52
Total income tax provision	$	3,611	$	159

Schedule of Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate

The Company has elected to prospectively adopt the guidance in ASU 2023-09, "Income Taxes - Improvements to Income Taxes Disclosures." In accordance with the guidance in ASU 2023-09, the reconciliation between the income tax expense computed by applying the statutory U.S. federal income tax rate to the pre-tax income before income taxes and total income tax expense recognized in the financial statements was as follows for the year ended December 31, 2025 (dollars in thousands):


	Year Ended December 31, 2025
	Amount			Percentage
Provision for income taxes at U.S. federal statutory rate	$	11,532			21.0	%
State and local income taxes, net of federal effect (1)		482			0.9	%
Foreign tax effects:
Canada
Gain on sale of a business		20,059			36.5	%
Foreign rate differential		(1,041	)		(1.9	)%
Change in valuation allowance		(12,770	)		(23.3	)%
Other		803			1.5	%
Germany		(826	)		(1.5	)%
Luxembourg
Gain on sale of a business		8,680			15.8	%
Foreign rate differential		1,353			2.5	%
Change in valuation allowance		(17,066	)		(31.1	)%
Other		(179	)		(0.3	)%
Singapore
Capital gains exemption		(1,482	)		(2.7	)%
Other		(83	)		(0.2	)%
United Kingdom
Change in valuation allowance		(992	)		(1.8	)%
Other		296			0.5	%
Other countries		(163	)		(0.3	)%
Effect of changes in tax laws or rates enacted in the current period		—			—
Effect of cross-border tax laws:
Global Intangible Low-Taxed Income (“GILTI”)		4,071			7.4	%
Subpart F income		303			0.6	%
Tax credits		—			—
Valuation allowance		(9,464	)		(17.2	)%
Non-taxable or non-deductible Items:
Change in fair value of warrant liability		(670	)		(1.2	)%
Other		238			0.4	%
Uncertain tax positions		—			—
Gain on sale of a business		577			1.1	%
Other adjustments		(47	)		(0.1	)%
Total tax provision and effective tax rate	$	3,611			6.6	%

(1) State taxes in Maryland made up the majority (greater than 50%) of the tax effect in this category.

Prior to the adoption of ASU 2023-09, the reconciliation between the income tax expense computed by applying the statutory rate of 21% to the effective tax rate was as follows for the year ended December 31, 2024:


	Year Ended
	December 31, 2024
U.S. federal tax benefit at statutory rate		21.0	%
State income taxes, net of federal benefit		3.6	%
Foreign rate differential		(0.1	)%
Contingent earnout		(0.3	)%
Stock-based compensation		(3.2	)%
UK R&D expenditure		0.5	%
GILTI inclusion		(1.5	)%
Outside basis difference in foreign subsidiary		1.8	%
Deferred tax adjustments		1.5	%
Non-deductible expenses and other		(1.6	)%
Change in valuation allowance, net		(21.9	)%
Effective tax rate		(0.2	)%

Summary of Significant Components of Deferred Tax Assets (Liabilities)

The significant components of deferred tax assets (liabilities) are as follows (in thousands):


	Year Ended December 31,
	2025			2024
Deferred tax assets
Net operating loss carryforward	$	63,303		$	103,462
Research and development credit carryforward		5,010			5,599
Interest expense limitation carryforward		11,596			12,467
Stock-based compensation		1,712			1,971
Property and equipment		1,068			7,493
Investment in subsidiary		—			1,732
Operating lease liabilities		935			1,371
Sec 174 Capitalized R&D		7,744			10,700
Intangibles		242			239
Other accruals		10,223			14,321
Gross deferred tax assets		101,833			159,355
Less: Valuation allowance		(98,902	)		(141,877	)
Net deferred tax assets		2,931			17,478
Deferred tax liabilities
Intangibles		(1,290	)		(11,864	)
Operating lease right-of-use assets		(864	)		(1,263	)
Foreign property and equipment and intangibles		(36	)		(313	)
Other accruals		(3,445	)		(4,898	)
Gross deferred tax liabilities		(5,635	)		(18,338	)
Net deferred tax liabilities	$	(2,704	)	$	(860	)

Summary of Income taxes paid, net of refunds received

Income taxes paid, net of refunds received, during the year ended December 31, 2025 are as follows (in thousands):


	Year Ended December 31, 2025
U.S. federal	$	—
U.S. state and local
California		274
District of Columbia		91
Maryland		325
New York City		107
Virginia		173
Other		27
Foreign		—
Total cash paid for income taxes, net of refunds	$	997