Sidus Space, Inc. Q3 2025 Earnings Call Summary

1Key Financial Results and Metrics

Total Revenue: $2.8 million for the first nine months of 2025, down 27% from $3.8 million in the same period in 2024. Q3 revenue was $1.3 million, a 31% decrease from $1.9 million in Q3 2024.

Cost of Revenue: Increased to $8 million (up 48%) for the first nine months, and $2.6 million (up 42%) for Q3, driven by higher depreciation and supply chain pressures.

Gross Loss: Approximately $4 million for the first nine months, compared to a loss of $719,000 in the previous year. Q3 gross loss was $1.3 million, compared to a profit of $38,000 in Q3 2024.

SG&A Expenses: Rose to $13 million for the first nine months and $4.3 million for Q3, reflecting investments in personnel and infrastructure.

Net Loss: $5 million for Q3, up from $3.9 million in the same period last year.

Adjusted EBITDA Loss: $12.6 million for the first nine months, compared to $8.3 million in the prior year; Q3 adjusted EBITDA loss was $4 million, a 62% increase from Q3 2024.

Cash Position: $12.7 million as of September 30, 2025, down from $15.7 million a year prior.

2Strategic Updates and Business Highlights

Sidus Space is transitioning from a satellite manufacturer to a diversified space and defense innovator, focusing on full mission lifecycle capabilities.

Continued development of the LizzieSat constellation and expansion into commercial and defense markets.

Significant progress on the Mobile Launch 2 contract, with expectations for improved gross margins and revenue visibility.

Successful commissioning of the AIS sensor on LizzieSat-3 and advancements in software and payload integration.

Ongoing investment in dual-use, software-defined satellites and AI-driven data services.

Recent capital raises totaling approximately $15.5 million to support commercialization and expansion of product lines.

3Forward Guidance and Outlook

Anticipation of increased revenue from higher-margin contracts and recurring revenue models as the company shifts focus from legacy contracts.

Expectation of meaningful cost reductions and operational efficiencies in Q4 2025 to support long-term profitability.

Continued development of the Fortis DPX computing suite, with initial products on track for validation by year-end 2025, contributing to revenue in 2026.

4Bad News, Challenges, or Points of Concern

Revenue decline reflects a strategic shift that may impact short-term financial performance.

Increased gross loss and SG&A expenses due to ongoing investments and operational scaling.

Supply chain pressures and changing contract dynamics have contributed to rising costs and complexity in operations.

The company faces risks related to government funding uncertainties and competitive pressures in the space and defense sectors.

5Notable Q&A Insights

Commercialization Timeline for Fortis DPX: Expected production release in January 2026, with early interest from various sectors.

Commissioning Timeline for LS-3: Progressing well, with expectations for increasing data contributions from additional satellites LS-4 and LS-5.

Geographic Revenue Mix: Strong international momentum, particularly among allied nations seeking U.S. capabilities.

Backlog Composition: Driven by VPX SOSA hardware and LizzieSat integrations, aligned with defense modernization priorities.

Lunar-Capable Lizzie Platform: Positioned strategically for opportunities in lunar exploration, with early contracts already secured. Overall, Sidus Space, Inc. is navigating a challenging financial landscape while positioning itself for future growth through strategic investments and a diversified business model.