Sidus Space Inc. Reports 77% Revenue Decline and Increased Net Loss in Q1 2025

Sidus Space Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue of $238,494, a decrease of approximately 77% compared to $1,050,155 in the same period of 2024. The company attributed this drop primarily to the timing of fixed-price milestone contracts, which affected both non-related party revenue and related party revenue, the latter falling by 62% to $77,790. The cost of revenue also increased by 93% to $1,866,972, leading to a gross loss of $1,628,478, a stark contrast to the gross profit of $84,064 reported in the previous year.

Operating expenses rose to $4,444,442, up 22% from $3,645,583 in the prior year, largely due to increased labor costs and expenses related to equity-based compensation. The net loss for the quarter was $6,414,627, a 68% increase from the net loss of $3,810,500 in Q1 2024. This loss translated to a basic and diluted loss per share of $(0.35), compared to $(1.42) in the previous year, reflecting a significant increase in the number of shares outstanding due to warrant exercises.

In terms of operational developments, Sidus Space has continued to expand its capabilities and product offerings. The company successfully launched three LizzieSat® satellites within a year, enhancing its position in the space technology sector. The company is also focusing on the integration of advanced technologies into its satellite platforms, including AI-driven data processing capabilities through its Sidus Orlaith™ ecosystem. This strategic direction aims to improve the efficiency and effectiveness of data collection and processing for various applications, including environmental monitoring and disaster response.

As of March 31, 2025, Sidus Space reported current assets of $16,516,929, a decrease of 26% from $22,252,552 at the end of 2024, primarily due to reduced cash reserves and prepaid expenses. Current liabilities remained stable at $14,229,336, resulting in a working capital of $2,287,593, down 72% from $8,043,050. The company ended the quarter with $11,711,301 in cash, a decrease from $15,703,579 at the end of 2024, indicating a reliance on financing activities to support operations.

Looking ahead, Sidus Space aims to leverage its vertically integrated model to enhance revenue generation opportunities while mitigating risks associated with market fluctuations. The company plans to continue expanding its satellite constellation and enhancing its product offerings to meet the growing demand for space-based data solutions. However, management acknowledges the challenges posed by the need for additional capital to fund operations and the competitive landscape of the space industry.