Executive Summary

Q2 revenue was $1.26M, up 36% year over year, and up materially vs Q1; GAAP net loss was $5.63M, and basic/diluted EPS was $(0.31). Adjusted EBITDA loss was $(3.95)M as the company invested ahead of commercialization, with cost of revenue impacted by satellite and software depreciation .
Management completed ADCS commissioning on LizzieSat‑3, fully staffed its 24/7 Mission Operations Center, and continued rolling out dual‑use Fortis VPX and the Orlaith AI ecosystem; they reiterated that profitability is not expected in 2025 while emphasizing “fueling innovation” to drive future recurring revenue .
Liquidity improved year over year; cash was $3.6M at quarter end, followed post‑quarter by a public offering (7.143M shares at $1.05) and ~$6.7M net proceeds, bolstering execution capacity for commercialization and product scale‑up .
Operational catalysts: LS‑3 commissioning and activation of sensors for subscription data, LoneStar lunar data‑storage program (amended/extended; total potential value $120M), and growing defense/commercial engagement; timeline shifts in Mobile Launcher 2 create YoY revenue variability but milestone payments are expected on hardware delivery .
Wall Street consensus (S&P Global) was unavailable for EPS and revenue, limiting beat/miss analysis; focus shifts to execution milestones, H2 commercialization, and data‑as‑a‑service ramp [GetEstimates; see Estimates Context].*

What Went Well and What Went Wrong

What Went Well

LS‑3 ADCS commissioning completed; onboard autonomous GNC software deployed, enabling precise pointing, power optimization, and readiness for sensor activation and data subscriptions (“critical milestone”) .
Revenue grew 36% YoY on timing of fixed‑price milestone contracts (including related‑party projects), and the company broadened its dual‑use product portfolio (Fortis VPX) and AI ecosystem deployments (Orlaith in Asia) .
Strategic positioning strengthened with an amended/extended LoneStar lunar agreement (total potential value $120M), Notice of Allowance for modular satellite platform patent, and fully staffed mission operations center (“24/7 spacecraft monitoring”) .

Selected quote: “This isn’t about funding operations. It’s about fueling innovation and converting success into sustainable growth.” — Carol Craig .

What Went Wrong

Gross loss widened vs prior year due to higher depreciation from satellite/software investments and evolving contract mix; SG&A increased with headcount growth, mission operations, equity comp, and infrastructure costs .
Net loss increased to $(5.63)M vs $(4.14)M YoY, and adjusted EBITDA loss expanded to $(3.95)M, reflecting continued scaling and investment ahead of commercialization .
Operational risk update: LS‑1 experienced a potential orbital debris‑related anomaly; the team is working to reestablish contact, and LS‑2 remains in commissioning while software refinements from LS‑3 are planned for integration .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD)	$927,570	$238,494	$1,261,023
Basic & Diluted EPS ($USD)	$(0.99)	$(0.35)	$(0.31)
Gross Profit (Loss) ($USD)	$(841,101)	$(1,628,478)	$(1,027,142)
SG&A ($USD)	$3,056,814	$4,444,442	$4,263,269
Adjusted EBITDA ($USD)	$(3,183,847)	$(4,674,423)	$(3,946,350)
Net Loss ($USD)	$(4,136,084)	$(6,414,627)	$(5,625,070)
Cash and Equivalents ($USD)	$1,444,369	$11,711,301	$3,634,693

Revenue breakdown (contract mix and related party):

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue – Non‑related ($USD)	$834,798	$160,704	$691,070
Revenue – Related parties ($USD)	$92,772	$77,790	$569,953
Total Revenue ($USD)	$927,570	$238,494	$1,261,023

KPIs and balance sheet highlights:

KPI	Q2 2024	Q1 2025	Q2 2025
Satellites on orbit (LS‑1, LS‑2, LS‑3)	2 (LS‑1, LS‑2)	3 (LS‑3 launched)	3
Mission Ops Center staffing	Building capability	24/7 capability established	Fully staffed 24/7
Patent portfolio	14 issued, 13 pending	Notice of Allowance (modular test platform)	~28 approved/pending
LoneStar lunar program (potential value)	Announced	Amended/extended	$120M total potential
Asset‑based loan expense (quarter)	$65,920	$432,645	$360,092
Cash ($USD)	$1,444,369	$11,711,301	$3,634,693

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Profitability	FY 2025	Not specified in prior quarter	“We do not expect to turn a profit in 2025”	Lowered/clarified
Revenue trajectory	H2 2025	“Material revenue growth in H2” (Q1)	“Positioning…for material revenue growth in the second half of the year” (Q2)	Maintained
Mobile Launcher 2 milestones	2025	Not specified	On‑track to complete hardware delivery; timeline shift driving YoY variability; milestone payments expected on delivery	Update/timing shift
LEO launches	2026–2027	Next LEO launches planned 2026/2027	Two LS satellites manifested toward 2026 with more advanced imagers	Maintained/expanded detail
Quantitative ranges (rev, margins, opex, tax)	2025	None	None provided; qualitative only	N/A

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024)	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
AI/Technology initiatives	Orlaith AI introduced; FCC space‑to‑space relay approved	Orlaith launched; FeatherEdge Gen‑2 commissioning; VPX SSBC/PNT debut	Orlaith deployed in Asia; Fortis VPX tiers (Solo/Flex/Maxima); ForLake AI ecosystem detailed	Strengthening; commercialization
Supply chain/macro	Cost and supply chain pressures in FY24	Continued global supply chain pressures in manufacturing operations	Ongoing cost pressures impacting manufacturing	Persistent headwind
Product performance (LS‑series)	LS‑1, LS‑2 operational; LS‑3 to launch	LS‑3 launched and commissioning under way	LS‑3 ADCS commissioned; LS‑2 commissioning; LS‑1 anomaly remediation	Execution progress; mixed fleet status
Regulatory/legal/IP	FCC approvals; expanding global partnerships	Notice of Allowance on modular test platform	Notice of Allowance; ~28 patents approved/pending	IP moat expanding
Defense/commercial demand	NASA, DoD contracts; diversification strategy	Pipeline momentum; defense demos	“Golden dome” national security alignment; allied defense spending uptick	Opportunity expanding

Management Commentary

Strategic focus: “Our infrastructure is in place, our products are in the market, and our partnerships are accelerating…shifting from R&D and infrastructure build‑out to commercialization and revenue generation” .
Capital deployment: “This isn’t about funding operations. It’s about fueling innovation and converting success into sustainable growth” .
Execution milestones: “Completed commissioning of the ADCS system on LizzieSat‑3 with cutting‑edge Autonomous, Machine‑Learning‑Powered on‑board GNC software” .
Commercial roadmap: “These initiatives mark our transition from technology development to revenue generation…positioning Sidus for material revenue growth in the second half of the year” .
Profitability outlook: “We do not expect to turn a profit in 2025,” while building “a stronger foundation for the future” .

Q&A Highlights

The Q2 call concluded after prepared remarks; no Q&A session content was provided in the transcript .
Liquidity and capital: CFO noted ~$3.6M cash at quarter‑end and ~ $6.7M net proceeds realized shortly after via the public offering, supporting next‑gen satellite builds and high‑growth product lines .
Operating drivers: Management reiterated H2 commercialization, milestone timing impacts (Mobile Launcher 2), and scaling dual‑use AI/hardware platforms as key near‑term execution priorities .

Estimates Context

S&P Global consensus estimates for Q2 2025 were unavailable for EPS and revenue; the S&P feed returned no consensus values, only actuals. As a result, beat/miss vs Street cannot be determined this quarter. Values retrieved from S&P Global.* [GetEstimates]

Key Takeaways for Investors

Commercialization inflection: LS‑3 commissioning and sensor activation underpin data‑as‑a‑service subscriptions; watch for H2 bookings and data revenue traction .
Investment phase persists: Expect continued GAAP losses in 2025 as depreciation and mission ops scale; monitor adjusted EBITDA trajectory as product sales and data ramp .
Contract catalysts: LoneStar ($120M potential) and Mobile Launcher 2 milestones can drive lumpy revenue recognition; timing remains critical for quarterly prints .
Capital runway: Post‑quarter offering adds liquidity to execute on VPX and AI initiatives; track cash burn vs commercialization milestones .
Mixed fleet update: LS‑3 progressing; LS‑2 commissioning enhancements; LS‑1 anomaly mitigation ongoing—fleet reliability and uptime are key to recurring revenue .
Strategic positioning: Vertically integrated hardware‑software‑data and expanding patent portfolio differentiate in defense/commercial markets; monitor allied spending and U.S. incentives tailwinds .
Near‑term trading lens: Headlines on LS‑3 activation steps (sensor/payload onlining), new product orders (Fortis VPX), and any initial data subscriptions are likely stock catalysts ahead of profitability .

Footnote: *Consensus data via S&P Global; no estimates available for Q2 2025 at time of analysis.

Sidus Space Inc. (SIDU)·Q2 2025 Earnings Summary