Sidus Space NASDAQ: SIDU reported higher first-quarter revenue and a narrower net loss as management said the company is moving from technology development toward commercialization of its satellite, computing and data platforms.
On the company’s first-quarter 2026 earnings call, Chairwoman and Chief Executive Officer Carol Craig said the quarter reflected “continued progress” as Sidus translated several years of development work into operational capabilities supporting space and defense missions. She said the company remains focused on advancing next-generation satellite builds, expanding technology platforms and delivering on customer commitments.
Craig described Sidus as a U.S.-based, vertically integrated space and defense technology company with capabilities spanning satellite design, manufacturing, on-orbit operations, advanced computing and data platforms. She said the company is benefiting from broader momentum in commercial space, expanding national security priorities and demand for space-based data and resilient computing architectures.
Revenue rises as losses narrow
Chief Financial Officer Adarsh Parekh said total revenue for the first quarter ended March 31, 2026, was approximately $359,000, up 51% from $238,000 in the first quarter of 2025. He said the increase was primarily driven by new customer contracts, including Lonestar Data Holdings and Teledyne Marine, while milestone-based revenue recognition also affected year-over-year comparisons.
Cost of revenue declined 25% to $1.4 million from $1.9 million a year earlier, which Parekh attributed mainly to lower satellite and related software depreciation expense and improved cost discipline in manufacturing.
Sidus reported a gross loss of $1.1 million, compared with a gross loss of $1.6 million in the prior-year quarter, an improvement of 36%. Excluding depreciation included in cost of revenue, gross loss was $531,000, compared with $792,000 in the first quarter of 2025.
Selling, general and administrative expenses were $4.4 million, essentially unchanged from the year-earlier period. Parekh called that a “meaningful indicator of cost discipline,” saying Sidus held operating expenses effectively constant while supporting a broader scope of programs, more mature on-orbit operations and an expanded sales and business development effort.
Adjusted EBITDA loss, a non-GAAP measure, was $4.6 million, compared with an adjusted EBITDA loss of $4.7 million in the first quarter of 2025. Net loss improved to $5.2 million from $6.4 million a year earlier, a reduction of $1.2 million, or 19%.
Satellite fleet advances through commissioning
Craig said Sidus has launched multiple LizzieSat satellites between March 2024 and March 2025, with each mission demonstrating increased capability across design, operations and mission performance. She said those missions support the company’s transition toward commercialization and revenue generation.
During the first quarter, LizzieSat-2, operating at an equatorial inclination, remained in commissioning with continued system checks and communication passes. LizzieSat-3 completed full bus-level commissioning and advanced through payload-level commissioning activities, while continuing to collect AIS data and test customer payloads, including HEO USA’s non-Earth imaging camera.
Craig said Sidus reached a technical milestone in March with the receipt of initial imagery from the HEO camera aboard LizzieSat-3, demonstrating sub-5-meter resolution. She said the achievement was an important step toward starting subscription-based data services after commissioning is complete.
The company’s mission control center, now in its third year of full 24/7 operations, continues to support satellite operations, collection management and data distribution for Sidus’ fleet, with capacity to support additional customer satellite constellations, Craig said.
Focus turns to Fortis VPX and next-generation satellites
Craig said Sidus’ near-term strategic priorities are focused on two areas: compute hardware and satellites. The company continued to advance its Fortis VPX platform, a modular computing system designed for challenging and constrained environments. The platform includes a SOSA-aligned single-board computer and a precision navigation and timing module for GPS-denied environments.
Craig said Sidus is engaged with multiple commercial customers and defense prime contractors evaluating Fortis VPX for satellite payload processing, unmanned systems and ground-based computing. Converting those evaluations into commercial revenue is a near-term priority, she said.
Sidus also remains positioned under the Missile Defense Agency’s 10-year SHIELD IDIQ contract, which Craig described as a pathway for the company’s satellite, onboard processing and modular compute capabilities. She said Sidus is preparing to pursue task orders under the contract.
The company is also advancing LS-4 and LS-5 as next-generation software-defined satellite platforms, incorporating capabilities such as laser communications and software-defined hyperspectral imaging. Craig said the architecture is intended to let customers, including international partners such as the Netherlands Organisation for Applied Scientific Research, adapt mission requirements on orbit.
During the quarter, Sidus achieved an integration milestone with Maris-Tech, whose edge computing and video processing payload is scheduled to fly on LS-4. The company also signed a memorandum of understanding with Simera Sense to advance AI-enabled hyperspectral imaging for near real-time intelligence-driven Earth observation capabilities.
Balance sheet strengthened by capital raise
Parekh said Sidus entered 2026 with $43.2 million in cash and no outstanding term debt. As of March 31, 2026, the company had $27.3 million in cash. First-quarter cash use supported operations, satellite production and full repayment of an asset-backed line of credit in January, which Parekh said eliminated related interest expense and simplified the capital structure.
After the quarter ended, Sidus closed a registered direct offering on April 21, 2026, generating gross proceeds of $58.5 million. Parekh said the company intends to use the net proceeds for working capital and general corporate purposes. He said the offering strengthens liquidity and provides flexibility to support growth, reduce risk around critical milestones and improve operating efficiency.
Craig said the company’s capital raises have been aimed at strengthening the balance sheet, funding technology development and positioning Sidus to compete for larger commercial and defense programs. She added that Sidus may evaluate strategic investments that could strengthen core capabilities, expand its technology stack and accelerate market access, provided they meet disciplined economic criteria and offer clear paths to revenue growth and margin expansion.
Looking ahead, Craig said Sidus is focused on turning its platforms and capabilities into recurring revenue and durable margins while maintaining disciplined capital allocation, cost control and execution.
About Sidus Space NASDAQ: SIDU
Sidus Space Inc NASDAQ: SIDU is an end-to-end space-as-a-service company headquartered in Houston, Texas. The firm provides mission design, spacecraft manufacturing, ground segment infrastructure and mission operations through a turnkey approach tailored to commercial and government customers. Sidus leverages its integrated supply chain to support client missions from concept development through data delivery.
The company’s product offerings include small satellite buses, flight computers, payload integration services and proprietary ground control software, supplemented by cloud-based data processing and analytics tools.
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