Sidus Space, Inc. Q3 FY2025 earnings call

• Sidus Space is evolving into a diversified space and defense innovator, spanning full mission life cycle from LEO to lunar environment. - Continued executing on strategy by expanding vertical integration, advancing LizzieSat constellation, and strengthening partnerships. - Completed Mobile Launch 2 contract, nearing completion with 57 electronic cabinets delivered, expecting improved gross margins and stronger revenue visibility. - On-orbit progress: Commissioned AIS sensor on LizzieSat-3, upgraded flight software, activated additional payloads, demonstrated satellites can support multiple sensors. - LizzieSat platform is software-defined, enabling rapid in-orbit reconfiguration and performance optimization. - Vertically integrated model sets apart, allowing unmatched speed, control, and flexibility. - Invested in infrastructure, technology, and team to build capabilities, with recent capital raises for commercializing product lines, expanding LizzieSat constellation, and advancing AI ecosystem.

For the nine months ended September 30, 2025, total revenue was approximately $2.8 million compared to $3.8 million in the same period in 2024, a decrease of about $1 million or 27%. Cost of revenue rose to approximately $8 million, a 48% increase from $4.6 million in the prior year. Gross loss for the period was approximately $4 million compared to a loss of about $719,000 in the prior year. Selling, general, and administrative expenses totaled $13 million compared to $9.9 million in the prior year. Adjusted EBITDA loss for the first nine months was $12.6 million compared to $8.3 million in the same period last year. For the three months ended September 30, 2025, total revenue reached $1.3 million, a 31% decrease compared to about $1.9 million in Q3 2024. Cost of revenue for the quarter rose to $2.6 million, up 42% from the prior year. Gross profit for Q3 2025 was a loss of $1.3 million compared to a profit of $38,000 in Q3 2024. SG&A expenses for the quarter totaled $4.3 million, up from $3.2 million in Q3 2024. Adjusted EBITDA loss for Q3 2025 was $4 million, a 62% increase from Q3 2024. Net loss for the quarter was $5 million compared to $3.9 million in the same period of the prior year.

• Expect improved gross margins and stronger revenue visibility with Mobile Launch 2 nearing completion. - Plan to implement meaningful cost reduction activities and operating efficiencies in Q4. - Recent capital raises fund near-term product commercialization, LizzieSat scaling, and AI development to accelerate innovation and growth.

• Factors causing actual results to differ from forward-looking statements include ability to estimate operational expenses and liquidity needs, customer demand, supply chain delays (including launch providers), and extended sales cycles.

Q: How should we think about the commercialization timeline for Fortis DPX?

A: First three VPX products remain on track for release to production in January 2026, with customer integrations and revenue contributions beginning shortly thereafter.

Q: Can you update us on the commissioning timeline for LS-3 and how additional satellites change your revenue model?

A: LS-3 commissioning is progressing well; additional satellites (LS-4 and LS-5) expand hosted payload capability, data ability, and on-orbit AI throughput, with increasing data contributions from more industries and customer missions due to software-defined imagers.

Q: Are customers already evaluating FortisVPX or FeatherEdge?

A: Yes, active early access programs with government and commercial customers for FeatherEdge, and positive market feedback for Fortis VPX.

Q: What does your geographic revenue mix look like going forward?

A: Strong momentum internationally, especially among allies; within the U.S., greater budget clarity is an upside.

Q: How should we think about backlog composition?

A: Backlog increasingly driven by VPX SOSA hardware, engineering services, and LizzieSat integrations, which are multi-year high-visibility contracts aligned with defense modernization priorities.

Q: How does the capital raise position the company?

A: Recent capital raise funds significant portion of near-term product commercialization, LizzieSat scaling, and AI development to accelerate innovation and fund growth.

Q: Can you expand on alignments with the DOD's Golden Dome vision?

A: Sidus Space's technology roadmap aligns with Golden Dome's need for resilient, distributed, multi-layered sensing and communications architecture; strengths in autonomy, rapid deployment, ruggedized edge computing, and multi-mission sensing make it suited for Golden Dome-style architectures.

Q: What is the potential market for your lunar-capable Lizzie Lunar platform?

A: NASA's Commercial Lunar Initiative and allied nations' lunar exploration programs create opportunity, with few U.S. companies providing smaller, cost-effective lunar buses.