Sidus Space Inc. (SIDU) - Q1 2026 10-Q Summary
Business Context and Reporting Period
This summary covers the quarterly period ended March 31, 2026. Sidus Space Inc. is a vertically integrated space and defense technology provider specializing in satellite manufacturing (LizzieSat platform), AI-driven space-based data solutions, and mission operations. The company operates as a single segment and is classified as a smaller reporting company and an emerging growth company.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue | $359,372 | $238,494 |
| Net Loss | $(5,211,607) | $(6,414,627) |
| Loss Per Share (Basic/Diluted) | $(0.08) | $(0.35) |
| Cash and Cash Equivalents | $27,349,756 | $11,711,301 |
| Working Capital | $29,284,874 | $35,667,851 |
| Asset-Based Loan Balance | $0 | $8,212,186 |
| Adjusted EBITDA | $(4,626,934) | $(4,674,423) |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by 51% ($120,878) compared to Q1 2025, driven by new contracts with Lonestar Data Holdings and Teledyne Marine, as well as increased related-party activity.
- Debt Elimination: The company fully repaid its $8.2 million asset-based loan in January 2026. This eliminated significant interest and loan fees, contributing to a swing in "Other income (expense)" from a $342k expense in 2025 to a $258k income in 2026.
- Cost Reduction: Cost of revenue decreased by 25% to $1.4 million, primarily due to lower depreciation expenses following a satellite impairment write-off in Q4 2025.
- Cash Flow: Net cash used in operating activities increased to $5.6 million (from $3.2 million in 2025). Financing activities used $6.5 million, largely due to the loan repayment, partially offset by $1.7 million in proceeds from warrant exercises.
Outlook, Risks, and Unusual Items
- Subsequent Capital Raise: On April 21, 2026, the company completed a registered direct offering raising approximately $53.9 million in net proceeds.
- Leadership Change: CFO Adarsh Parekh resigned effective June 1, 2026. John Burke was appointed Interim CFO.
- Operational Milestones: Successfully launched LizzieSat-3 (LS-3) in March 2025 and commissioned its AI capabilities. Signed a $120 million contract amendment for lunar satellite manufacturing with Lonestar Holdings.
- Risks: The company remains dependent on equity and debt financing due to insufficient operating revenues. Disclosure controls and procedures were deemed ineffective as of March 31, 2026, though management is implementing corrective actions. Customer concentration remains high, with Craig Technologies accounting for 48% of Q1 2026 revenue.
Investor Verification Checklist
- Verify the utilization of the $53.9 million raised in the April 2026 registered direct offering.
- Monitor the timeline for the appointment of a permanent Chief Financial Officer.
- Assess the progress of the $120 million Lonestar Holdings lunar satellite contract and associated milestone payments.
- Review the status of the remediation plan for ineffective disclosure controls and procedures.
- Track the deployment schedule for the next 2-3 LizzieSat satellites planned for launch over the next three years.