Sidus Space reported third‑quarter 2025 results that show a sharp decline in revenue and a widening net loss, reflecting the company’s ongoing transition to higher‑margin, recurring revenue streams. Total revenue for the nine‑month period ended September 30 was $2.8 million, down 27% from $3.8 million in the same period a year earlier. Quarterly revenue for Q3 was $1.3 million, a 30% drop from $1.9 million in Q3 2024, driven largely by the reduction in legacy contract work and the early stages of the company’s new commercial and AI‑driven offerings.
The cost of revenue rose to $2.6 million, up 42% from the prior year, while operating expenses—including SG&A, depreciation, and amortization—totaled $4.33 million, an increase of 35% from Q3 2024. The higher depreciation reflects capitalized spending on satellite builds and software development that will underpin future revenue streams. These cost increases, combined with the lower top line, pushed the company into a net loss of $6.03 million for the quarter, compared with a $3.90 million loss in Q3 2024.
Management emphasized that the widening loss is a short‑term consequence of heavy investment in the LizzieSat constellation, the Fortis VPX product line, and the Orlaith AI platform. CEO Carol Craig noted that the company is “laying the groundwork to convert our technology foundation into meaningful commercial opportunities” and that “disciplined execution” will align spend with near‑term revenue milestones. CFO Adarsh Parekh highlighted that the nine‑month revenue decline is “primarily due to a strategic shift away from legacy contract work toward higher‑value commercial space and AI‑driven solutions.” The company completed two capital raises totaling $15.5 million in July and September 2025 to fund these initiatives.
Cash and cash equivalents stood at $12.73 million as of September 30, a 19% decline from $15.70 million a year earlier, underscoring the capital‑intensive nature of the build‑out. Management projects revenue growth in the second half of 2025 as new satellite and data‑service contracts mature, with the first revenue contributions from the Fortis VPX suite expected in 2026. The company faces headwinds from declining legacy revenue and widening losses, but tailwinds include the strategic shift to higher‑margin recurring contracts, progress on the LizzieSat constellation, and the expansion of AI capabilities. The guidance signals confidence in the long‑term trajectory while acknowledging short‑term financial pressure.
The results illustrate the trade‑off between investing for future growth and maintaining short‑term profitability. While the company’s cash position remains modest, the capital raises and strategic focus on vertical integration and AI suggest a path toward sustainable revenue streams once the new product lines reach market maturity.
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