Sidus Space (NASDAQ:SIDU) reported lower second-quarter revenue while strengthening its cash position through two equity offerings that generated $158.5 million in gross proceeds during the quarter. Management said the company is shifting its focus from technology demonstrations toward customer adoption, recurring revenue and commercial scaling.
For the three months ended June 30, 2026, Sidus reported revenue of approximately $583,000, down 54% from $1.3 million in the prior-year quarter. The company recorded a net loss of $4.8 million, compared with a $5.6 million loss a year earlier. Its adjusted EBITDA loss, a non-GAAP measure, widened to $5.1 million from $3.9 million.
Capital Raises Expand Liquidity
Sidus completed two best-efforts registered direct offerings during the second quarter. An April offering generated $58.5 million in gross proceeds, while a May offering generated approximately $100 million in gross proceeds. Net proceeds from the transactions totaled approximately $146.2 million, according to Chief Financial Officer Alan Khalili.
As of June 30, the company held $166.5 million in cash and had working capital of $167.6 million, up from $43.2 million in cash at the beginning of 2026. Sidus had no outstanding borrowings after repaying its asset-backed line of credit in January.
Craig acknowledged that the equity financings increased dilution, with Class A shares outstanding rising to 101.1 million as of June 30 from 65.3 million at the end of 2025. She said the capital was intended to improve financial flexibility, support commercialization, pursue larger government programs and reduce near-term financing pressure.
Management said capital allocation priorities include commercializing the Fortis VPX platform and AI hardware and software portfolio, expanding manufacturing capacity, enhancing government business-development efforts, accelerating next-generation satellite production and building infrastructure for larger customer programs.
Satellite Testing and Fortis VPX Progress
Operationally, Sidus said its next LizzieSat completed vibration testing in June at Element US Space & Defense’s Orlando facility. The test is intended to simulate launch and ascent mechanical loads. Craig said the environmental qualification milestone clears the path toward launch readiness and on-orbit operations.
The satellite is expected to be the first flight mission for Fortis VPX Maxima, the company’s proprietary digital mission computing platform. Sidus said the platform combines a quad-core ARM processor, reconfigurable FPGA, NVIDIA edge AI and machine-learning capabilities, and an assured positioning, navigation and timing suite.
Craig said operating Fortis VPX Maxima in space is expected to advance the technology to Technology Readiness Level 9, subject to successful mission operations. She said flight heritage is often a requirement in procurement decisions for defense and commercial customers.
The company now refers to the product as the Fortis VPX Digital Mission Computing Platform, reflecting its planned application across space, air, maritime and terrestrial systems. Sidus said the platform is designed for uses including autonomous mission execution, edge processing of high-bandwidth payload data, cybersecurity functions, sensor fusion, precision timing and electronic warfare-related applications.
Sidus currently anticipates initial full commercial availability of Fortis VPX in early 2027, subject to final integration work and customer qualifications. Craig said defense prime contractors, satellite manufacturers and commercial aerospace organizations are evaluating the platform for a growing number of mission applications.
Revenue Declines, but Net Loss Narrows
For the first six months of 2026, Sidus recorded revenue of approximately $942,000, down 37% from $1.5 million in the first half of 2025. Related-party revenue declined to approximately $161,000 from $648,000, while third-party revenue declined 8% to approximately $781,000.
First-half cost of revenue fell to $2.6 million from $4.2 million, reflecting lower satellite and related software depreciation after an impairment recorded in the fourth quarter of 2025, as well as lower contract material and labor costs. Gross loss improved to $1.7 million from $2.7 million.
Selling, general and administrative expenses increased 9% to $9.5 million for the first half, primarily due to higher professional fees. The company’s first-half net loss narrowed 17% to $10 million from $12 million, aided by the elimination of asset-based loan costs and higher interest income on its cash balance.
In the second quarter, cost of revenue decreased 47% to $1.2 million, while gross loss improved 39% to approximately $630,000. However, SG&A expenses rose 19% to $5.1 million, driven in part by professional fees associated with the CFO transition and higher payroll expenses.
Khalili, who became CFO effective July 27, said his focus will be on financial discipline and converting Sidus’ satellite manufacturing, data, AI and mission-critical hardware portfolio into durable recurring revenue.
Index Inclusion and Government Pipeline
Sidus joined the Russell 3000, Russell 2000 and Russell Microcap indexes as part of the June 2026 Russell reconstitution. Craig said the inclusion expands the company’s potential institutional investor audience, though she emphasized that it does not guarantee sustained investor interest or increased liquidity.
The company plans to expand institutional outreach through conferences, non-deal roadshows, enhanced operational disclosures and targeted engagement with small-cap and space-sector funds during the second half of 2026.
Craig also cited Sidus’ participation in the Missile Defense Agency’s SHIELD contracting vehicle and discussions with Department of Defense agencies, defense intelligence organizations and major defense prime contractors. She said the company has continued investments in security infrastructure, operational compliance and mission assurance to pursue more sensitive defense and intelligence opportunities.
Management said the company’s near-term challenge is converting its technology and satellite flight heritage into customers, contracts and recurring revenue, while navigating complex space missions and lengthy government procurement cycles.
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.
