SIDU

Sidus Space fails every fundamental test at once. FY2025 revenue collapsed to $1.78M, down 54.1% YoY, and the multi-year trend is a decline, not a ramp: revenue peaked at $6.25M in FY2022 and has fallen every year since ($5.01M → $3.87M → $1.78M) even as losses widened to a record -$29.5M net loss. Most damning, gross profit is NEGATIVE (-$5.69M, a -320% gross margin) — the company loses money on the product itself before a dollar of overhead, so scaling would deepen losses, not cure them. Operating margin of -1,576% and net margin of -1,659% are not fixable by cost discipline; the unit economics are inverted.

The filing confirms the peril in plain language. Management states it 'incurred net losses of $29,474,304 and $17,524,056' and expects operating expenses to 'increase over the next several years,' while listing 'our ability to continue as a going concern' and 'our need to raise substantial additional capital to fund our operations' among its core risks. With operating cash flow of -$18.2M and capex of $8.17M against a balance sheet whose current assets ($50.7M) are being consumed, this is a business dependent on repeatedly tapping capital markets. It has already done so aggressively: weighted shares outstanding rose 407.6% in a single year, so existing holders are being diluted at a staggering pace, and the -$89.8M accumulated deficit shows how much shareholder capital has been destroyed since inception.