Sidus Space Inc (NASDAQ:SIDU) shares are trading lower Wednesday morning after the company reported full-year 2025 results that showed weaker revenue, sharply higher costs and a wider net loss, even as management highlighted operational progress across its satellite and defense platforms.

Revenue Fell While Losses And Expenses Moved Sharply Higher

For the year ended Dec. 31, 2025, Sidus posted revenue of about $3.38 million, down 28% from $4.67 million in 2024. At the same time, cost of revenue climbed 48% to roughly $9.08 million, pushing gross loss to about $5.69 million from $1.47 million a year earlier. Operating expenses also jumped 57% to $22.3 million, while net loss widened 68% to $29.47 million. Adjusted EBITDA loss deepened to $17.29 million.

Contract Timing, LizzieSat Costs And Impairment Weighed On Results

The company said the revenue decline was driven largely by the timing of fixed-price milestone contracts, while higher costs reflected a full year of LizzieSat operations, including increased depreciation, plus higher labor and fringe expenses. A $4.5 million non-cash impairment charge tied to LizzieSat-1, and related assets also added pressure.

That income statement appears to be outweighing the brighter strategic headlines, which included the LizzieSat-3 launch, AI-processing milestones and a strengthened cash position of $43.2 million following 2025 equity raises.

SIDU Shares Edge Lower Wednesday Morning

SIDU Price Action: Sidus Space shares were down 8.19% at $2.13 at the time of publication on Wednesday, according to Benzinga Pro data.

Image: Shutterstock