Investment Thesis
Sidus Space is a severely unprofitable early-stage company with negative gross margins (-168.2%), indicating fundamental business model dysfunction. Despite 90% revenue growth, the company loses $8.65 for every dollar of revenue and burns $26.3M annually in free cash flow, giving approximately 1.6 years of runway at current burn rates given $43.2M cash reserves.
Strengths
- Strong gross revenue growth of 90.4% YoY demonstrates market demand
- Excellent liquidity position with $43.2M cash and 3.37x current ratio
- Zero debt provides financial flexibility and no near-term solvency risk
Risks
- Negative gross margin of -168.2% indicates company loses money on every sale—structural business model failure
- Operating cash flow of -$18.2M coupled with -$26.3M free cash flow shows severe cash depletion
- Operating losses of -$28.0M on $3.4M revenue represent 827.7% operating margin deficit with no visible path to profitability
- Capital expenditure of $8.2M despite negative cash flow accelerates cash burn
- Zero insider Form 4 filings in 90 days suggests lack of insider confidence
- Early-stage operations at minimal scale ($3.4M revenue) require successful scaling to reach breakeven
Key Metrics to Watch
- Operating cash flow trajectory and path to positive OCF
- Gross margin improvement toward breakeven (currently -168%)
- Cash runway depletion rate at current burn rate
- Revenue growth sustainability and customer acquisition cost economics
Financial Metrics
Revenue
3.4M
Net Income
-29.5M
EPS (Diluted)
$-1.19
Free Cash Flow
-26.3M
Total Assets
66.1M
Cash
43.2M
Profitability Ratios
Gross Margin
-168.2%
Operating Margin
-827.7%
Net Margin
-871.0%
ROE
-58.2%
ROA
-44.6%
FCF Margin
-778.0%
Balance Sheet & Liquidity
Current Ratio
3.37x
Quick Ratio
3.36x
Debt/Equity
0.00x
Debt/Assets
23.4%
Interest Coverage
-310.70x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-15T21:33:24.389188 |
Data as of: 2025-12-31 |
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