Sidus Space Inc. (NASDAQ: SIDU) reported a narrowed net loss for the second quarter of 2026, even as total revenue declined from the prior-year period.
The Florida-based space technology company posted a net loss of $2.1 million in Q2 2026, compared with a $3.4 million loss in the same quarter of 2025. Revenue for the period fell 15% year-over-year to $1.8 million, down from $2.1 million in Q2 2025. Management attributed the improved bottom-line performance to operational efficiency measures implemented over the past year, including reduced overhead costs and streamlined project execution.
Gross margin expanded to 22% from 18% in the year-ago quarter, reflecting cost controls and a shift in revenue mix toward higher-margin contracts. Operating expenses decreased by 12% sequentially, driven by lower research and development spending and administrative cost reductions.
Sidus Space, which specializes in satellite manufacturing and space-based data services, reaffirmed its guidance for full-year 2026 revenue between $8 million and $9 million. The company noted that contract backlog remains stable at approximately $12 million, providing visibility into near-term revenue streams.
Shares of Sidus Space were down 3% in after-hours trading following the results, as investors weighed the revenue decline against the improved profitability metrics.
