Sidus Space Reports Mixed Q2 Results
Lunar Operations Expanded at Mid-Year Mark
Space and defense technology company Sidus Space posted higher revenue but deeper losses in the second quarter as it invests in next-generation satellite systems and artificial intelligence capabilities. Sidus Space reported revenue of $1.3 million, up 36% compared to $928,000 in Q2 2024, though net losses widened to $5.6 million from $4.1 million a year earlier.
"Q2 was about disciplined execution and building durable technology assets."
Carol Craig, Sidus Space
The Cape Canaveral, Florida-based Sidus Space completed commissioning of its ADCS system on LizzieSat-3 with autonomous, machine learning-powered onboard guidance, navigation and control software. The company also deployed its Orlaith AI system in Asia and amended its lunar satellite manufacturing contract with Lonestar Holdings, bringing the total potential value to $120 million.
"Q2 was about disciplined execution and building durable technology assets," said Carol Craig, CEO, Sidus Space. "We advanced LizzieSat-3 commissioning, fully staffed our 24/7 Mission Operations Center, and expanded our proprietary platform with the Fortis VPX Command and Data Handling system and Orlaith AI Ecosystem, built to move data and insights seamlessly across space, air, land, and sea."
The contract expansion with Lonestar Data Holdings, which offers premium data storage from the Moon and its orbits for disaster recovery services, represents a key growth opportunity for Sidus Space. Lonestar has already achieved successful lunar data storage tests, proving the technology can operate in space.
Cost of revenue increased 29% to $2.3 million due to increased satellite and software depreciation plus higher material and labor costs. This contributed to a gross loss of $1.0 million compared to $841,000 a year earlier. Selling, general and administrative expenses rose to $4.3 million from $3.1 million, driven by headcount growth, launch rescheduling and operational scaling.
The company's cash position improved to $3.6 million as of June 30, 2025, versus $1.4 million a year earlier. Sidus Space operates a 35,000-square-foot space manufacturing, assembly, integration and testing facility strategically located on Florida's Space Coast with access to nearby launch facilities.
Looking forward, CEO Craig emphasized the company is "prioritizing commercialization, aligning spend to milestones, and pursuing capital-efficient ways to turn our technology into revenue." The company recently designed LizzieLunar to address the Moon's unique operational challenges and successfully executed a capital raise to fund its dual-use, multi-domain Fortis VPX product line.
Our Take
Sidus Space's results reflect broader trends in the commercial space industry, where companies are investing heavily in next-generation capabilities while working to commercialize their technologies. The expanded Lonestar contract highlights growing demand for space-based data storage solutions as businesses seek resilient backup systems. With the global space economy expected to exceed $400 billion annually, companies like Sidus Space are positioning themselves at the intersection of space technology, artificial intelligence and defense applications.
The company's focus on multi-domain operations—spanning space, air, land and sea—aligns with military and commercial customers' needs for integrated systems. As space becomes increasingly critical for national security and commercial operations, Sidus Space's dual-use technologies could capture significant market share.