Sidus Space, Inc. Q2 FY2026 earnings call

• Capital Raising and Balance Sheet Updates

  • Closed two registered direct offerings in Q2 2026: an April offering with $58.5 million gross proceeds, and a late May offering with $100 million gross proceeds, totaling $158.5 million in gross proceeds for the quarter. Net proceeds from both offerings were approximately $146.2 million.
  • Management acknowledges the equity dilution from these offerings, but frames the capital raise as a strategic move to strengthen the balance sheet, improve financial flexibility, reduce near-term financing risk, support commercialization acceleration from a position of strength, and improve the company's competitive position for large government programs.
  • Following the capital raises, the company entered Q2 2026 with $43.2 million in cash and ended the quarter with $166.5 million in cash with no outstanding debt. Outstanding Class A shares increased to 101,106,203 as of June 30, 2026, up from 65,324,055 at the end of 2025.
  • Capital allocation priorities are: continued investment in Fortis VPX and AI portfolio commercialization, expanding manufacturing capacity, strengthening business development and government contracting capture, accelerating next-generation satellite production, and building operational infrastructure to support large customer programs, with a long-term focus on reaching sustainable positive cash flow.

• Index Inclusion and Investor Relations Expansion

  • SIDUS Space was added to the Russell 3000, Russell 2000, and Russell Microcap Indexes as part of the June 2026 reconstitution, effective June 26, 2026.
  • Management notes that index inclusion expands the company's access to institutional investors by making it eligible for funds that require index constituent status, and may improve trading liquidity. To convert this visibility into sustained institutional ownership, the company is expanding its investor relations program: increasing participation in institutional conferences and non-deal roadshows in H2 2026, increasing the cadence and depth of operational disclosure, strengthening governance and internal reporting to meet institutional diligence standards, and conducting targeted outreach to small-cap and space sector focused funds.

• Satellite Program and Technical Milestones

  • The company's next LISESat successfully completed vibration testing, a key environmental qualification milestone, in June 2026. This clears the path to launch, and confirms the satellite structure, components, and payloads can withstand launch mechanical loads.
  • This mission will mark the first on-orbit flight of the Fortis DPX Maxima (now rebranded as the Fortis VPX) multi-domain digital mission computing platform. Successful on-orbit operation will advance Fortis VPX to Technology Readiness Level 9, the highest maturity level, which is a common procurement requirement for government and commercial customers.
  • SIDUS Space holds a unique market position between large traditional prime contractors that build custom one-off spacecraft on long timelines, and small satellite vendors that sell only standardized off-the-shelf buses. The company builds custom, mission-specific spacecraft based on a common, flight-proven LISESat engineering baseline, delivered at faster speeds and lower costs than traditional bespoke programs, with vertical integration of all design, build, and testing operations at the company's Florida Space Coast facility.

• Fortis VPX Platform Commercialization Progress

  • Fortis VPX has evolved from a specialized command and data handling system to a multi-domain, software-defined digital mission computing architecture that serves as an intelligent backbone for next-generation space and defense systems. It enables real-time autonomous operations, on-edge AI processing of high-bandwidth data, and integrated advanced cybersecurity functions, with built-in AI/ML processing, assured positioning navigation and timing (AP&T), and cyber-resilient design.
  • Fortis VPX is built with space-rated components (unlike many competing VPX products built from commercial/automotive grade parts), supports modular customization to meet specific mission size, weight, power, and cost requirements, and leverages flight-proven insights from SIDUS' three existing on-orbit LISESat missions. The platform is supported by a strategic collaboration with Microchip Technologies for space-grade semiconductors.
  • Initial full commercial availability of Fortis VPX is currently expected in early 2027, pending ongoing final integration and customer qualification activities. Customer engagement with defense prime contractors, satellite manufacturers, and commercial aerospace organizations is expanding as hardware availability approaches.

• Business Development and Pipeline

  • Current geopolitical trends have increased government demand for the company's core offerings: resilient space architectures, autonomous operations, AI-enabled decision-making, and distributed computing for contested environments. The company's participation in the Missile Defense Agency SHIELD program and ongoing discussions with DoD agencies, intelligence organizations, and major defense primes has expanded the company's opportunity pipeline.
  • The company has invested in expanded security infrastructure, compliance, and mission assurance capabilities to pursue more sensitive defense and intelligence opportunities. The company's 24/7 Mission Control Center currently supports its own satellites, with excess capacity to support additional customer constellations.

SIDUS Space does not break out separate financial performance for distinct product segments in this earnings call. Aggregated total company financial results for the quarter and first half of 2026 are as follows:

• Q2 2026 (three months ended June 30, 2026): Total revenue was $583,000, a 54% decrease from $1.3 million in Q2 2025. Cost of revenue was $1.2 million, a 47% decrease from $2.3 million year-over-year. Gross loss improved 39% to $630,000 from $1 million YoY. Selling, general, and administrative expenses were $5.1 million, a 19% increase from $4.3 million YoY. Operating loss was $5.7 million, compared to $5.3 million YoY. Net loss improved 15% to $4.8 million from $5.6 million YoY. Adjusted EBITDA loss was $5.1 million, compared to a $3.9 million loss YoY.
• First half of 2026 (six months ended June 30, 2026): Total revenue was approximately $942,000, a 37% decrease from $1.5 million in the same period 2025. Cost of revenues was $2.6 million, a 1.5 million decrease from H1 2025. Gross loss improved to $1.7 million from $2.7 million YoY. Selling general and administrative expenses were $9.5 million, a 9% increase from $8.7 million YoY. Operating loss was $11.2 million, a $201,000 improvement from $11.4 million YoY. Net loss improved 17% to $10 million from $12 million YoY. Adjusted EBITDA loss was $9.7 million, compared to an $8.6 million loss YoY.
• Balance sheet as of June 30, 2026: $166.5 million in cash, working capital of $167.6 million, and no outstanding borrowings after full repayment of the company's asset-backed line of credit in January 2026.

Management did not provide specific quantitative revenue or margin guidance for 2026 or future periods. Key forward-looking statements include:

• Initial full commercial launch of the Fortis VPX platform is targeted for early 2027, subject to the completion of ongoing final integration and customer qualification activities.
• Management expects future performance will be measured by customer adoption, recurring revenue growth, expanding operating margins, disciplined capital allocation, and execution against milestones, rather than technical demonstrations or prototype launches.
• The company will expand its investor relations outreach and disclosure cadence throughout the second half of 2026.

• Forward-looking statements about future operational and financial performance are inherently uncertain, and actual results may differ materially due to risks including: inaccurate estimation of operational expenses and liquidity needs, fluctuations in customer demand, supply chain delays (particularly from launch providers), and extended government sales and procurement cycles.
• Commercializing new space and defense technologies is inherently challenging, space missions are complex, and long government procurement cycles require significant patience before converting customer engagements into contracted revenue.
• Equity financing for growth has resulted in shareholder dilution, and the benefits of the recent capital raise are not guaranteed.
• Improved trading liquidity and increased institutional ownership following Russell index inclusion are not assured, and any benefits will depend on market conditions and the company's ongoing operational execution.

There was no question and answer section held during this earnings call.