Sidus Space (SIDU) Q4 2025 earnings summary

Executive summary

• Transitioned from government-focused contract manufacturing to a diversified space and defense technology company, emphasizing vertically integrated, end-to-end satellite and AI-enabled data solutions.

• Achieved key milestones in satellite launches, including the successful launch and commissioning of LizzieSat-3 in March 2025, and advanced on-orbit AI-enabled data processing.

• Advanced partnerships and signed MOUs with industry leaders to support next-generation satellite platforms and global mission offerings.

• Secured major government and defense contracts, including a five-year IDIQ with Tobyhanna Army Depot and a ten-year IDIQ under the Missile Defense Agency SHIELD program.

• Strategic shift toward higher-margin, scalable products and platforms, reducing reliance on legacy contract manufacturing.

Financial highlights

• Full year 2025 revenue was $3.4 million, down 28% from $4.7 million in 2024, reflecting a shift away from legacy contracts.

• Cost of revenue increased 48% to $9.1 million, driven by higher depreciation from satellite fleet expansion and supply chain pressures.

• Gross loss widened to $5.7 million (gross margin -168%) from $1.5 million in 2024 (gross margin -31%), mainly due to increased depreciation and contract mix.

• Adjusted EBITDA loss was $17.3 million, compared to $12.9 million in 2024, reflecting ongoing investment in scaling and higher payroll.

• Net loss for 2025 was $29.5 million, up from $17.5 million in 2024, primarily due to infrastructure and personnel investments and a $4.5 million impairment charge.

Outlook and guidance

• Focus on accelerating commercialization, expanding defense market presence, and prioritizing scalable, higher-margin products.

• Investments in satellite operations and infrastructure are expected to support scaling of platforms and AI-enabled data solutions, advancing future revenue opportunities.

• LS-4 and LS-5 satellites in production, featuring advanced AI and onboard processing, with customer deployments expected.

• Depreciation costs are anticipated to be offset by growth in high-margin satellite and data-related revenue as the LizzieSat fleet expands.

• Continued emphasis on cost discipline, capital efficiency, and converting pipeline into contracted programs.