Sidus Space, Inc.

Sidus Space's full-year 2025 financial results reflect the company's ongoing strategic transition toward higher-margin satellite manufacturing, data, and technology business lines, as articulated by CEO Carol Craig. The 28% revenue decline to $3.4 million was attributed to this deliberate shift away from lower-margin activities, with the company focusing on building a scalable, recurring revenue base anchored by its growing LizzieSat fleet. The significant increase in cost of revenue (48% to $9.1 million) and resulting gross loss expansion to $5.7 million were primarily driven by higher depreciation costs associated with the expansion of Sidus' on-orbit satellite fleet, including the deployment of LizzieSat-2 and LizzieSat-3. Management noted that while depreciation will continue to impact cost of revenue, it is expected to be significantly offset as the company grows its high-margin satellite and data-related revenue. The net loss of $29.5 million included a $4.5 million non-cash impairment charge related to LizzieSat-1 and associated assets, which contributed to the year-over-year increase in net loss. Excluding this impairment, core SG&A expenses increased to $17.8 million, driven by higher payroll to support expanding satellite operations and business development activities. The company's strengthened balance sheet, with cash increasing to $43.2 million from $15.7 million following equity capital raises in the third and fourth quarters of 2025, positions Sidus to accelerate development of LizzieSat-4 and LizzieSat-5 while executing its growing pipeline of high-margin satellite and data programs. Operational achievements during the year included the successful launch and commissioning of LizzieSat-3, on-orbit AI processing demonstrations, and securing multiple strategic contracts, including the amended $120 million lunar satellite manufacturing agreement with Lonestar Data Holdings and the ten-year IDIQ contract under MDA's SHIELD program with a $151 billion potential ceiling.