Sidus Space, Inc. (NASDAQ: SIDU) priced a best‑efforts equity offering of 10.8 million shares of its Class A common stock at $1.50 per share, targeting gross proceeds of approximately $16.2 million before fees and expenses. The offering is expected to close on December 29, 2025.
The financing follows a $25 million equity raise that closed on December 23, 2025, underscoring the company’s continued need for capital as it shifts from contract manufacturing toward a vertically integrated space‑as‑a‑service model. Sidus plans to use the net proceeds to support working capital and general corporate purposes, including further investment in its satellite platform and data‑services initiatives.
Sidus’s recent financial performance highlights the urgency of the capital raise. In Q3 2025, revenue fell 31% year‑over‑year to $1.3 million, while the net loss widened to $6 million from $3.9 million in Q3 2024. For the full year 2024, revenue declined 22% to $4.7 million and the company posted a $17.5 million net loss. The decline reflects higher satellite and software depreciation, increased material and labor costs, and a shift away from legacy high‑margin services toward higher‑margin commercial offerings.
Management emphasized disciplined execution and operational efficiency as the company navigates this transition. CEO Carol Craig said, “We remain focused on disciplined execution by aligning spend to near‑term revenue milestones, identifying operational efficiencies, strengthening our intellectual property, expanding global partnerships, and accelerating our path to commercialization.” She added that the company is building a “space‑as‑a‑service” platform that leverages its Edge AI capabilities and vertically integrated manufacturing, a strategy validated by a recent contract under the Missile Defense Agency’s SHIELD program.
Investors reacted negatively to the announcement, citing the dilutive nature of the new shares and the company’s ongoing capital needs. The offering reflects Sidus’s strategy to fund its growth and maintain momentum in a competitive space‑technology market, but it also signals short‑term financial pressure as the company works to achieve profitability while scaling its new business model.
The market’s cautious stance highlights the tension between Sidus’s ambitious expansion plans and the immediate dilution and cash burn associated with frequent equity raises. The company’s ability to secure high‑profile contracts and execute on its “space‑as‑a‑service” vision will be critical to turning the current capital‑intensive phase into sustainable growth.
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