Investment Thesis
Sidus Space is a pre-revenue stage company burning significant cash with a fundamentally broken business model: negative gross margin of -292% indicates it loses over $3 for every $1 of revenue generated. Despite $27.3M in cash reserves and zero debt, operating cash burn of $5.6M annually combined with -$9.3M free cash flow provides only 3-4 years of runway with no demonstrated path to profitability.
Strengths
- Strong balance sheet with $27.3M cash and only $4.2M liabilities
- Excellent short-term liquidity position (8.56x current ratio)
- 90.4% revenue growth YoY demonstrates market traction in satellite communications
Risks
- Severely negative gross margin (-292%) indicates cost structure fundamentally misaligned with revenue model
- Negative free cash flow of -$9.3M annually will deplete cash reserves within 3-4 years at current burn rate
- Early-stage space company with substantial execution risk and no demonstrated profitability pathway
Key Metrics to Watch
- Gross margin trajectory and path to positive contribution margin
- Monthly cash burn rate and revised runway estimates
- Operating cash flow improvement and achievement of cash flow breakeven
- Revenue growth sustainability and customer diversification
Financial Metrics
Revenue
359.4K
Net Income
-5.2M
EPS (Diluted)
$-0.08
Free Cash Flow
-9.3M
Total Assets
51.6M
Cash
27.3M
Profitability Ratios
Gross Margin
-292.2%
Operating Margin
-1,522.0%
Net Margin
-1,450.2%
ROE
-11.0%
ROA
-10.1%
FCF Margin
-2,596.9%
Balance Sheet & Liquidity
Current Ratio
8.56x
Quick Ratio
8.51x
Debt/Equity
0.00x
Debt/Assets
8.2%
Interest Coverage
-6,222.65x
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: 2026-05-23T09:19:55.111485 |
Data as of: 2026-03-31 |
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