Sidus Space Inc. Reports Q2 2025 Financial Results with Revenue Increase but Declining Profitability

Sidus Space Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $1.26 million, a 36% increase from $927,570 in the same period last year. However, the company experienced a significant decline in profitability, with a net loss of $5.63 million compared to a loss of $4.14 million in Q2 2024. For the first half of 2025, total revenue decreased by 24% to $1.50 million, down from $1.98 million in the prior year, primarily due to a reduction in non-related party revenue, which fell by 49% to approximately $852,000.

The company's cost of revenue surged by 52% to $4.16 million for the six months ended June 30, 2025, driven by increased depreciation expenses and supply chain costs. This led to a gross loss of $2.66 million for the first half of 2025, a stark contrast to the $757,000 loss reported in the same period of 2024. Selling, general, and administrative expenses also rose by 30% to $8.71 million, largely due to increased labor costs and operational expenses associated with supporting multiple satellites in orbit.

In terms of operational developments, Sidus Space has made strides in its satellite manufacturing capabilities, successfully launching three LizzieSat® satellites within a year. The company is also expanding its product offerings, including enhancements to its AI-driven data processing capabilities through the Sidus Orlaith™ ecosystem. The company reported a significant increase in related party revenue, which rose by 117% to approximately $648,000, reflecting the timing of fixed-price milestone contracts.

As of June 30, 2025, Sidus Space's total assets decreased to $29.67 million from $37.75 million at the end of 2024, primarily due to a reduction in cash reserves, which fell to $3.63 million from $15.70 million. Current liabilities increased slightly to $14.78 million, resulting in a working capital deficit of approximately $3.61 million. The company is currently reliant on debt financing and equity sales to fund its operations, with an accumulated deficit of $72.39 million.

Looking ahead, Sidus Space aims to leverage its recent public offering, which raised approximately $6.6 million in net proceeds, to support its growth initiatives. The company plans to continue expanding its satellite constellation and enhancing its technology offerings, positioning itself to capitalize on the growing demand for space-based data and services. The management remains optimistic about future revenue growth, driven by ongoing contracts and the anticipated launch of additional satellites.