Summary of Sidus Space Q4 2025 Earnings Call

1Key Financial Results and Metrics

Total Revenue: Approximately $3.4 million for FY 2025, down 28% from $4.7 million in FY 2024. This decline is attributed to a strategic shift away from legacy contract work towards higher-value commercial and AI-driven solutions.

Cost of Revenue: Increased to $9.1 million, a 48% rise from $6.1 million in 2024, primarily due to higher depreciation and supply chain pressures.

Gross Loss: Approximately $5.7 million, compared to a loss of $1.5 million in 2024. Adjusted gross loss (excluding depreciation) was about $1.7 million, down from a profit of $453,000 in 2024.

SG&A Expenses: Increased to $22.3 million from $14.2 million, driven by growth initiatives and a $4.5 million impairment charge.

Net Loss: $29.5 million, up from $17.5 million in the previous year, reflecting strategic investments and impairments.

Cash Position: $43.2 million as of December 31, 2025, significantly up from $15.7 million in 2024, bolstered by capital raises totaling approximately $53.3 million.

2Strategic Updates and Business Highlights

Sidus Space is transitioning to a vertically integrated space and defense technology company, focusing on dual-use, multi-domain products.

Successfully launched three LizzieSat satellites, enhancing operational capabilities and customer offerings.

Developed the Fortis VPX platform for onboard computing, aimed at supporting both commercial and defense applications.

Secured a contract under the MDA's SHIELD IDIQ program, aligning with defense priorities and emphasizing collaboration with larger contractors.

Expanded lunar initiatives, including agreements for future missions and the introduction of the LunarLizzie spacecraft concept.

3Forward Guidance and Outlook

Management is focused on accelerating commercialization and expanding defense market presence, aiming for higher-margin products.

Plans to continue transitioning from lower-margin contract manufacturing to scalable, higher-value offerings.

Anticipates ongoing demand growth in government spending on defense and space, which will support future revenue generation.

4Bad News, Challenges, or Points of Concern

Declining revenue and increasing losses raise concerns about the transition period and the sustainability of current strategies.

The increase in cost of revenue and SG&A expenses may pressure margins in the short term.

The company faces challenges related to supply chain disruptions and the competitive landscape in the space technology sector.

Market volatility and investor concerns regarding stock performance were acknowledged, reflecting broader trends affecting small-cap and space tech companies.

5Notable Q&A Insights

Management addressed investor concerns regarding stock performance, attributing fluctuations to broader market conditions and the timing of revenue recognition.

Emphasized the importance of execution and building a durable business model focused on higher-margin, repeatable revenue streams.

Discussed the strategic rationale behind capital raises, highlighting the need for liquidity to support ongoing operations and technology development without incurring debt.

Reinforced commitment to maintaining a disciplined approach to capital allocation while pursuing growth opportunities in both commercial and defense sectors. Overall, Sidus Space is navigating a transitional phase with a focus on long-term growth through strategic investments and operational improvements, despite facing significant challenges in revenue generation and market conditions.