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    SIDU
    Earnings call· Jun 2026(Q2 FY26)

    Sidus Space Q2 FY26 earnings call SIDU

    Aug 14, 2026 Source

    Executive summary

    Sidus Space Q2 FY26 — Capital Raise Strengthens Balance Sheet, Fortis VPX Maxima Nears Launch

    Sidus Space completed a significant capital raise in Q2 FY26, securing $158.5 million in gross proceeds to strengthen its balance sheet and accelerate commercialization efforts. The company's next LizzieSat successfully passed environmental qualification, paving the way for the first flight of its Fortis VPX Maxima digital mission computing platform, which is expected to achieve TRL9. While revenue declined year-over-year, the focus is shifting from technology validation to customer adoption and recurring revenue generation, supported by enhanced financial flexibility and increased institutional visibility from Russell Index inclusion.

    Highlights

    5

    • Successfully raised $158.5 million in gross proceeds through two offerings in Q2 FY26, materially strengthening liquidity.

    • Next LizzieSat successfully completed vibration testing, a key environmental qualification milestone, clearing path to launch.

    • Fortis VPX Maxima, the proprietary digital mission computing platform, is set for its first flight, advancing to Technology Readiness Level 9.

    • Joined the Russell 3000, Russell 2000, and Russell Microcap Indexes in June 2026, increasing institutional visibility.

    • Net loss for H1 FY26 improved by $2 million or 17% to $10 million, driven by higher interest income and elimination of asset-based loan costs.

    Concerns

    5

    • Total revenue for H1 FY26 decreased by $557,000 or 37% to $942,000, primarily due to a significant decline in related party revenues.

    • Total revenue for Q2 FY26 decreased by 54% to $583,000 compared to $1.3 million in Q2 FY25.

    • Adjusted EBITDA loss for H1 FY26 widened to $9.7 million compared to a loss of $8.6 million in H1 FY25.

    • Adjusted EBITDA loss for Q2 FY26 widened to $5.1 million compared to a loss of $3.9 million in Q2 FY25.

    • Selling, general and administrative expenses increased by $774,000 or 9% to $9.5 million in H1 FY26, and by $799,000 or 19% to $5.1 million in Q2 FY26.

    Guidance & targets

    1
    CategoryTargetConfidence
    Fortis VPX Platform Commercial Availability
    Initial full commercial availability in early 2027
    high materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Related Parties
    Revenue from related parties for H1 FY26 decreased significantly from $648,000 in H1 FY25.
    		$161,000-75.15%——
    Third-Party
    Third-party revenue for H1 FY26 decreased from $852,000 in H1 FY25.
    		$781,000-8.33%——

    Operational metrics

    26
    Total Revenue
    $942,000decrease of $557,000 or 37% compared to $1.5 million in H1 FY25
    H1 FY26

    Most of the decline was in revenues from related parties.

    Total Revenue
    $583,000decrease of 54% compared to $1.3 million in Q2 FY25
    Q2 FY26

    Total revenue for the three months ended June 30, 2026.

    Cost of Revenues
    $2.6 milliondecrease of $1.5 million compared to $4.2 million in H1 FY25
    H1 FY26

    Decrease driven by lower satellite and related software depreciation and reduced contract material and labor costs.

    Cost of Revenues
    $1.2 milliondecrease of 47% compared to $2.3 million in Q2 FY25
    Q2 FY26

    Decrease driven by lower satellite and related software depreciation and reduced contractual material and labor costs.

    Gross Loss
    $1.7 millionimprovement of $976,000 compared to $2.7 million in H1 FY25
    H1 FY26

    Improvement due to cost of revenues declining more than revenues.

    Gross Loss
    $630,000improvement of 39% compared to $1 million in Q2 FY25
    Q2 FY26

    Improvement partially offset by the decline in revenue.

    Selling, General and Administrative Expenses
    $9.5 millionincrease of $774,000 or 9% compared to $8.7 million in H1 FY25
    H1 FY26

    Increase primarily due to professional fees.

    Selling, General and Administrative Expenses
    $5.1 millionincrease of $799,000 or 19% compared to $4.3 million in Q2 FY25
    Q2 FY26

    Increase primarily due to professional fees and payroll expenses.

    Loss from Operations
    $11.2 millionimprovement of $201,000 compared to $11.4 million in H1 FY25
    H1 FY26

    Loss from operations for the first half of the year.

    Loss from Operations
    $5.7 millioncompared to $5.3 million in Q2 FY25
    Q2 FY26

    Loss from operations for the second quarter.

    Net Loss
    $10 millionimprovement of $2 million or 17% compared to $12 million in H1 FY25
    H1 FY26

    Improvement reflecting elimination of asset-based loan costs and higher interest income.

    Net Loss
    $4.8 millionimprovement of $844,000 or 15% compared to $5.6 million in Q2 FY25
    Q2 FY26

    Improvement reflecting elimination of asset-based loan expense and higher interest income.

    Adjusted EBITDA Loss
    $9.7 millioncompared to $8.6 million loss in H1 FY25
    H1 FY26

    Adjusted EBITDA loss for the first half, reflecting increase in operational expense.

    Adjusted EBITDA Loss
    $5.1 millioncompared to $3.9 million loss in Q2 FY25
    Q2 FY26

    Adjusted EBITDA loss for the second quarter, reflecting decline in gross profit before depreciation and increase in cash operating expenses.

    Cash Used in Operating Activities
    $9.1 million
    H1 FY26

    Cash used in operating activities during the first six months of 2026.

    Invested in Property and Equipment
    $7.3 million
    H1 FY26

    Investment in property and equipment during the first six months of 2026.

    Cash Balance
    $166.5 millioncompared to $43.2 million at start of 2026
    as of June 30, 2026

    Strong cash position following capital raises.

    Working Capital
    $167.6 million
    as of June 30, 2026

    Working capital position at quarter end.

    Gross Proceeds from April Offering
    $58.5 million
    Q2 FY26

    Gross proceeds from the registered direct offering closed on April 21.

    Gross Proceeds from May Offering
    $100 million
    Q2 FY26

    Gross proceeds from the registered direct offering closed on May 29.

    Net Proceeds from Offerings
    $146.2 million
    Q2 FY26

    Net proceeds from the two best-effort registered direct offerings.

    Shares Issued in May Offering
    19.7 million
    Q2 FY26

    Shares of Class A common stock or pre-funded warrants issued in the May offering.

    Offering Price Per Share (May)
    $5.08
    Q2 FY26

    Offering price per share for the May registered direct offering.

    Class A Shares Outstanding
    101,106,203compared to 65,324,055 as of December 31, 2025
    as of June 30, 2026

    Increase in shares outstanding due to capital raises.

    Gross Profit Before Depreciation
    $117,000declined by approximately $117,000
    Q2 FY26

    Decline in gross profit before depreciation for the quarter.

    Cash Operating Expenses
    $1 millionincreased by approximately $1 million
    Q2 FY26

    Increase in cash operating expenses for the quarter.

    Product announcements

    2
    ProductTypeDetails
    Fortis VPX Maximamilestone
    Fortis VPX Digital Mission Computing Platformexpansion

    Deals & partnerships

    1
    Microchip TechnologyStrategic collaboration to support Fortis VPX development

    Collaboration announced in April, leveraging Microchip's space-grade flight-proven semiconductor technologies, including PolarFire FPGAs, space and defense-grade processors, precision timing modules, and high-reliability networking components.

    Capital programs

    1
    Satellites Under Constructionunderway
    Period spend: $7.3 million

    Investment in property and equipment, principally satellites under construction, during the first six months of 2026.

    Risks & headwinds

    5
    Equity financing dilution

    Equity financing creates dilution, with 19.7 million shares issued in May offering and total shares outstanding increasing from 65.3 million to 101.1 million.

    Mitigation: Capital raises designed to strengthen balance sheet, improve financial flexibility, and accelerate commercialization from a position of strength.

    Commercializing new technologies

    Commercializing new technologies is never easy.

    Mitigation: Focus on customer adoption, production programs, recurring revenue growth, expanding margins, disciplined execution, and responsible capital allocation.

    Complexity of space missions

    Space missions are complex.

    Mitigation: Vertically integrated model with repeatable design and flight heritage to ensure reliability.

    Government procurement cycles

    Government procurement cycles require patience.

    Mitigation: Strengthening business development and government capture efforts, investing in security infrastructure and compliance.

    Changing market conditions

    Market conditions will keep changing.

    Mitigation: Focus on building a company grounded in engineering discipline and capital efficiency, with a flexible and adaptable technology foundation.

    What to watch in Q3 FY26

    5

    Fortis VPX Commercial Availability

    early 2027
    CurrentUnder integration and customer qualifications
    TargetInitial full commercial availability

    Why it matters

    This is a key milestone for the commercialization strategy and will enable recurring revenue generation.

    we currently anticipate initial full commercial availability of the Fortis VPX platform in early 2027, subject to final integration activities and customer qualifications, which are underway now.

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Capital Deployment

    Sidus Space successfully raised $158.5 million in gross proceeds during Q2 FY26 through two registered direct offerings, significantly strengthening its balance sheet. This capital infusion is intended to fund growth initiatives, protect critical milestones, and drive operational efficiencies, rather than cover indefinite operating losses. The company emphasizes a disciplined approach to capital deployment, focusing on accelerating commercialization from a position of strength.

    02

    Russell Index Inclusion

    In June 2026, Sidus joined the Russell 3000, Russell 2000, and Russell Microcap Indexes. This inclusion is expected to broaden the company's appeal to institutional investors, pension funds, mutual funds, and exchange-traded funds, potentially increasing trading liquidity and visibility. Sidus plans to expand its investor relations program, including participation in institutional conferences and non-deal roadshows, to convert this visibility into sustained institutional interest.

    03

    LizzieSat and Fortis VPX Maxima Progress

    The company's next LizzieSat successfully completed vibration testing, a crucial environmental qualification milestone, clearing its path to launch. This mission marks the first flight for Fortis VPX Maxima, Sidus' proprietary multi-domain digital mission computing platform. The on-orbit operation is expected to advance the technology to Technology Readiness Level 9 (TRL9), signifying a system proven through successful mission operations, which is critical for procurement decisions.

    04

    Fortis VPX Evolution and Commercialization

    Fortis VPX has evolved into a multi-domain, software-defined digital mission computing architecture designed to address computing bottlenecks in autonomous space operations. It integrates high-performance processing, AI-enabling edge computing, autonomous mission execution, assured positioning, navigation and timing (A-PNT), resilient timing, and advanced cybersecurity within a single, modular architecture. Initial full commercial availability of the Fortis VPX platform is anticipated in early 2027, with customer engagements expanding as hardware availability increases.

    05

    Defense and Government Opportunities

    The current geopolitical landscape is driving increased demand for resilient space architectures, autonomous operations, and AI-enabled decision-making, aligning directly with Sidus' LizzieSat platform and Fortis VPX. The company is actively pursuing opportunities through strategic contracting vehicles, such as the Missile Defense Agency's SHIELD program, and engaging with various Department of Defense agencies and major defense prime contractors, strengthening its opportunity pipeline.

    06

    Vertical Integration and Manufacturing Strategy

    Sidus positions itself as a custom satellite manufacturer with flight-proven hardware, capable of delivering mission-specific spacecraft at production speed and cost. Its vertically integrated design, build, and integration model allows for rapid customization of the LizzieSat platform to meet diverse customer payloads and mission profiles. This approach ensures reliability through a common, qualified technology foundation, with each successive mission feeding operational lessons back into the baseline.

    AI-generated summary of the company’s earnings call. Not investment advice.