Sidus Space (SIDU), a space technology firm focused on integrated mission services, reported first quarter 2025 financial results reflecting the growing costs of its strategic pivot from legacy services to next-generation satellite and AI platforms. The company’s stock fell 9.39% following the announcement.
For the quarter ended March 31, 2025, Sidus generated revenue of $238,000, down significantly from $1.05 million in the same period last year. This decline was attributed to reduced contributions from high-margin legacy services as the company transitions toward recurring revenue models centered on its micro-constellation and AI offerings.
Costs of revenue rose 93% year-over-year to $1.9 million, driven by depreciation from recent satellite launches and increases in material and labor costs. As a result, Sidus reported a gross loss of $1.6 million for the quarter, compared to a gross profit of $84,000 in Q1 2024.
Operating expenses rose to $4.4 million, up from $3.6 million a year ago, reflecting investments in headcount and the impact of delayed launches. The adjusted EBITDA loss widened to $4.7 million from $2.7 million last year, while net loss totaled $6.4 million versus $3.8 million in Q1 2024.
Despite the top-line pressure, Sidus highlighted multiple operational milestones. The company successfully launched its LizzieSat-3 satellite aboard SpaceX Transporter-13 in March, completed initial commissioning of its GEN-2 FeatherEdge onboard edge computing platform, and introduced the Orlaith AI Ecosystem combining hardware and software for enhanced analytics. Sidus also launched several new modular, SOSA™-aligned computing solutions targeting defense and commercial space applications.
Subsequent to quarter-end, Sidus expanded its strategic footprint with a modified lunar satellite manufacturing agreement with Lonestar Holdings, potentially worth $120 million, and deployed its Orlaith AI system in Asia. New partnerships were also formed with Reflex Aerospace and Little Place Labs, the latter focused on near real-time maritime intelligence.
The company ended the quarter with $11.7 million in cash, up from $6.2 million a year earlier, after fully repaying its Decathlon loan. Management reaffirmed its focus on commercializing recently launched platforms and unlocking new revenue streams in the second half of 2025.
Following the earnings report released after-market yesterday, Sidus announced today that its advanced onboard edge computer, FeatherEdge™ GEN-2, is now operating successfully in orbit as part of the ongoing commissioning process of LizzieSat®-3.
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