How do Sidus Space's Q3 2025 negative gross margins compare to its direct space manufacturing peers?

Sidus Space (NASDAQ: SIDU) reported a negative gross margin of (100)% for the third quarter of 2025, which stands in stark contrast to its direct space manufacturing peers.1 This indicates that the cost of revenue significantly exceeded the revenue generated during the period.

For comparison, two notable peers in the space manufacturing and services sector reported positive gross margins for Q3 2025:

• Rocket Lab USA, Inc. (NASDAQ: RKLB), a global leader in launch services and space systems, achieved a GAAP gross margin of 37% in Q3 2025.2
• Velo3D, Inc. (NYSE: VLD), which provides additive manufacturing solutions often utilized in space applications, reported a gross margin of 6% as of September 30, 2025.3

Sidus Space's negative gross margin was primarily driven by increased satellite depreciation costs, higher labor expenses associated with more labor-intensive contracts, and a reduced contribution from its legacy high-margin services as the company transitions towards higher-value, recurring revenue streams.4 This suggests a period of significant investment and operational restructuring for Sidus Space, impacting its short-term profitability metrics compared to more established or specialized peers.