Sidus Space Inc. (SIDU)·Q3 2025 Earnings Summary

Executive Summary

• Q3 showed continued execution on vertical integration and product rollout, but fundamentals remain loss-making: revenue was $1.30M, down 31% YoY, with gross loss of $1.30M as depreciation and mix shift away from legacy high‑margin services weighed on results .
• Profitability worsened: Adjusted EBITDA loss was $4.0M (vs. $2.5M loss in Q3’24) and net loss was $6.0M (vs. $3.9M in Q3’24), driven by higher depreciation, SG&A scaling, and mix .
• Liquidity improved post capital raises; cash was $12.7M at quarter‑end (vs. $3.6M at Q2’25), supporting commercialization of Fortis VPX and satellite pipeline; management plans “meaningful cost reduction activities” by end of Q4 to support pathway to profitability .
• Potential catalysts: nearing completion of the multi‑year Mobile Launcher 2 program enabling capacity pivot to higher‑margin satellite/data and Fortis VPX product commercialization, plus Lonestar’s pathfinder payload on LizzieSat‑5 and FeatherEdge 248Vi design completion to support AI/edge ambitions .

What Went Well and What Went Wrong

• What Went Well

  • Advanced on-orbit capabilities: “Completed commissioning of the AIS sensor on LS3 and established communications with customer site,” strengthening constellation maturity and customer‑visible progress .
  • Product roadmap milestones: “First three [Fortis VPX] products…on track for year‑end validation,” with AI/edge processing platforms broadening dual‑use applications across defense and commercial markets .
  • Balance sheet bolstered to fund commercialization: completed two offerings with ~$15.5M net proceeds in Q3, earmarked to scale product lines and satellites .

• What Went Wrong

  • Revenue contraction and mix headwinds: revenue fell 31% YoY to $1.30M as the company pivots away from legacy services and recognizes milestone‑based contracts, pressuring near‑term growth .
  • Cost pressure and depreciation: cost of revenue rose 42% YoY (adjusted +20% ex satellite‑related depreciation), driving a gross loss of $1.30M versus a small profit in Q3’24 .
  • Operating leverage negative: SG&A increased to $4.3M (vs. $3.2M in Q3’24); Adjusted EBITDA loss widened to $4.0M; net loss increased to $6.0M .

Financial Results

P&L snapshot (USD)

YoY comparison (USD)

KPI and revenue composition

Notes: Adjusted EBITDA is non‑GAAP; see company reconciliations .

Guidance Changes

No formal numerical guidance (revenue, margins, EPS, tax, OI&E, dividends) was issued in Q3 materials .

Earnings Call Themes & Trends

Management Commentary

• Strategy and positioning: “Our multi‑mission, all‑domain approach…represents a new model…combining agility, integration, and strategic focus to meet diverse customer requirements.”
• Fortis VPX timeline: “Our first three VPX products remain on track for release to production in January of 2026. We expect customer integrations and revenue contributions to begin shortly thereafter.”
• Program shift: “With [Mobile Launcher 2] now nearing completion, we expect improved gross margins and stronger revenue visibility, as well as a reconfigured facility ready for expanded satellite and defense manufacturing.”
• Constellation maturation: “We completed commissioning of the AIS sensor on LISIS‑AT 3 and established direct communications with the customer site.”

Q&A Highlights

• Commercialization cadence: VPX production in Jan’26 with revenue shortly thereafter; early access programs for FeatherEdge underway with government/commercial customers .
• Satellite commissioning: LS‑3 commissioning progressing with multiple payloads and software updates; LS‑4/5 will add software‑defined imagers and increased onboard processing, expanding addressable use cases .
• Backlog/mix: Backlog increasingly driven by VPX/SOSA hardware, engineering services, and LISIS‑AT integrations (multi‑year, defense‑aligned) .
• Cost/efficiency: Management expects “meaningful cost reduction activities” by end of Q4’25 to support profitability trajectory .
• Defense alignment: Clear articulation of fit with DoD’s Golden Dome for resilient, distributed sensing/communications architectures .

Estimates Context

Wall Street consensus (S&P Global) coverage for quarterly EPS and revenue was not available for Q3 2025; only actuals were recorded.

Values retrieved from S&P Global.*
Implication: In absence of published consensus, the print should be interpreted against internal targets and sequential/YoY trends rather than a beat/miss framework.

Key Takeaways for Investors

• Execution continues on product and constellation roadmaps, but revenue remains milestone‑ and mix‑driven; near‑term P&L pressured by depreciation and scaled SG&A .
• Liquidity is sufficient to bridge commercialization milestones (VPX, LISIS‑AT 4/5), with $12.7M cash after capital raises, lowering funding risk near term .
• Operating efficiency actions targeted by Q4’25 end are the next proof point for margin path; watch for SG&A run‑rate inflection and gross margin lift as ML2 winds down .
• 2026 is shaping as a pivotal commercialization year (VPX revenue start; LS‑4/5 launch), with potential defense tailwinds from software‑defined, proliferated architectures .
• Near‑term catalysts: additional VPX design‑ins/orders, third‑party integrations/backlog updates, further on‑orbit payload activations/data customers, and formalizing cost‑reduction outcomes .
• Lonestar pathfinder on LS‑5 and FeatherEdge 248Vi completion strengthen the AI/edge thesis and potential multi‑orbit data/services revenue streams .
• With scant sell‑side estimates, price discovery likely hinges on proof of commercialization (orders, backlog, margins) and defense program visibility rather than quarterly “beats.”

Appendix: Additional Relevant Press Releases (Q3 period and subsequent)

• Lonestar Commercial Pathfinder Mission on LizzieSat‑5 (integration agreement executed) .
• FeatherEdge 248Vi design completion (high‑performance AI/ML edge computer) .
• Q3 call scheduling and webcast details .