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SIDUS SPACE REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS WITH Q1 YEAR OVER YEAR IMPROVEMENT IN REVENUE AND GROSS MARGIN

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Demonstrates On-Orbit Execution, Improves Financial Performance, and Advances Flight Ready Technology Portfolio

CAPE CANAVERAL, Fla., May 14, 2026 /PRNewswire/ — Sidus Space, Inc. (NASDAQ: SIDU), (the “Company” or “Sidus”), an innovative space and defense technology company, today announced its financial results for the first quarter ended March 31, 2026, and provided a business update highlighting continued on-orbit execution, progress across customer payloads and disciplined financial management.

The Company will host a conference call and webcast today, Thursday, May 14, at 5:00 p.m. Eastern Time.

“During the first quarter, we continued to execute our technical roadmap while maintaining disciplined cost control,” said Carol Craig, Founder and Chief Executive Officer of Sidus Space. “We delivered high-resolution imagery from LizzieSat-3, advanced customer payload commissioning, and finalized flight ready configurations for next generation systems planned for LizzieSat-4 and LizzieSat-5. These milestones strengthen our on-orbit heritage and position Sidus to support future missions while remaining focused on responsible capital allocation and operational execution.”

Operational Highlights for the Quarter Ending March 31, 2026:

Delivered initial imagery from HEO USA’s non-Earth imaging camera aboard LizzieSat-3, including sub 5-meter resolution imagery, as part of ongoing payload commissioning and an important step along the path toward initiating subscription-based data service delivery following completion of commissioningExpanded agreement with Lonestar Data Holdings to build an additional StarVault orbital data storage payloadAchieved integration milestone with Maris-Tech Ltd. (NASDAQ: MTEK) on its AI-based edge computing payload, scheduled to launch aboard LizzieSat -4Signed a Memorandum of Understanding (MOU) with Simera Sense to advance AI-enabled hyperspectral imaging capabilitiesFinalized the Fortis VPX Command and Data Handling platform for integration on to LizzieSat-4 and LizzieSat-5, establishing on-orbit heritage for the Company’s next generation spacecraft computing architectureAppointed Kelle Wendling, a senior aerospace and defense executive, to the Board of Directors

Subsequent Operational Highlights:

Completed best-efforts registered direct offering on April 21, 2026, generating gross proceeds of $58.5 million, further strengthening the Company’s liquidity positionAnnounced planned Chief Financial Officer (CFO) transition subsequent to quarter end: current CFO expected to depart effective June 1, 2026, with John Burke appointed Interim Chief Financial Officer effective the same date while the Company conducts a comprehensive search for a permanent CFO.

Financial Highlights for the First Quarter Ending March 31, 2026:

Revenue: $359,000, an increase of 51% compared to $238,000 in Q1 2025, driven by new customer contracts including Lonestar Data Holdings and Teledyne MarineCost of Revenue: $1.4 million, a 25% decrease compared to $1.9 million in Q1 2025, reflecting lower depreciation and improved manufacturing cost disciplineGross Profit (Loss): Gross loss of $1.1 million, a 36% improvement from a gross loss of $1.6 million in Q1 2025Selling, General and Administrative Expenses (SG&A) Expenses: $4.4 million, consistent with $4.4 million in Q1 2025Adjusted EBITDA (Non-GAAP): Loss of $4.6 million, as compared to a $4.7million loss in Q1 2025Net Loss: $5.2 million, an improvement of $1.2 million, or 19%, as compared to Q1 2025 Cash Position: $27.3 million as of March 31, 2026, with no outstanding term debt

Conference Call and Webcast

Event: Sidus Space First Quarter Financial Results Conference Call

Date: Thursday, May 14, 2026

Time: 5:00 p.m. Eastern Time

Live Call: + 1-866-652-5200 (U.S. Toll-Free) or +1-412-317-6060 (International)

Webcast: https://app.webinar.net/3lBO1a4r6ZQ

For interested individuals unable to join the conference call, a dial-in replay of the call will be available until Thursday, May 21, 2026, at 11:59 P.M. ET and can be accessed by dialing +1-855-669-9658 (U.S. Toll-Free) or +1-412-317-0088 (International) and entering replay pin number: 3323981.  An online archive of the webcast will be available for one year following the event at https://investors.sidusspace.com/.

About Sidus Space
Sidus Space, Inc. (NASDAQ: SIDU) is an innovative space and defense technology company offering flexible, cost-effective solutions, including satellite manufacturing and technology integration, AI-driven space-based data solutions, mission planning and management operations, AI/ML products and services, and space and defense hardware manufacturing. With its mission of Space Access Reimagined®, Sidus Space is committed to rapid innovation, adaptable and cost-effective solutions, and the optimization of space system and data collection performance. With demonstrated space heritage, including manufacturing and operating its own satellite and sensor system, LizzieSat®, Sidus Space serves government, defense, intelligence, and commercial companies around the globe. Strategically headquartered on Florida’s Space Coast, Sidus Space operates a 35,000-square-foot space manufacturing, assembly, integration, and testing facility and provides easy access to nearby launch facilities. For more information, visit: https://www.sidusspace.com  

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute ‘forward-looking statements’ within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. The words ‘anticipate,’ ‘believe,’ ‘continue,’ ‘could,’ ‘estimate,’ ‘expect,’ ‘intend,’ ‘may,’ ‘plan,’ ‘potential,’ ‘predict,’ ‘project,’ ‘should,’ ‘target,’ ‘will,’ ‘would’ and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors described more fully in the section entitled ‘Risk Factors’ in Sidus Space’s Annual Report on Form 10-K for the year ended December 31, 2025, and other periodic reports filed with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and Sidus Space, Inc. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. 

Non-GAAP Measures

To provide investors with additional information in connection with our results as determined in accordance with GAAP, we use non-GAAP measures of adjusted EBITDA. We use adjusted EBITDA in order to evaluate our operating performance and make strategic decisions regarding future direction of the company since it provides a meaningful comparison to our peers using similar measures. We define adjusted EBITDA as net income (as determined by U.S. GAAP) adjusted for interest expense, depreciation and amortization expense, capital raise expense, severance costs, equity-based compensation and impairment loss. These non-GAAP measures may be different from non-GAAP measures made by other companies since not all companies will use the same measures. Therefore, these non-GAAP measures should not be considered in isolation or as a substitute for relevant U.S. GAAP measures and should be read in conjunction with information presented on a U.S. GAAP basis.

The following table reconciles adjusted EBITDA to net loss (the most comparable GAAP measure) for the three months ended March 31, 2026 and 2025:

Three Months Ended

March 31,

2026

2025

Change

%

Net Income / (Loss)

$

(5,211,607)

$

(6,414,627)

$

1,203,020

(19)

%

Interest Income/Expense (i)

(258,102)

341,707

(599,809)

(176)

%

Depreciation & Amortization(ii)

611,606

934,674

(323,068)

(35)

%

Capital Raise expense (iii)

–

5,480

(5,480)

(100)

%

Severance Costs

16,042

206,100

(190,058)

(92)

%

Equity based compensation (iv)

215,127

252,243

(37,116)

(15)

%

Total Non-GAAP Adjustments

584,673

1,740,204

(1,155,531)

(66)

%

Adjusted EBITDA

(4,626,934)

(4,674,423)

47,488

(1)

%

(i)

Sidus Space incurred lower net interest expense following the repayment of the asset-based loan in January 2026 and increased interest income from cash holdings.

(ii)

Sidus Space incurred lower depreciation expense following the satellite impairment write-off in Q4 2025.

(iii)

Sidus Space did not incur internal fundraising expense related to capital raises.

(iv)

Sidus Space issued stock-based compensation for employee and Board services rendered.

 

SIDUS SPACE, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

March 31,

December 31,

2026

2025

Assets

Current assets

Cash

$

27,349,756

$

43,175,996

Accounts receivable

215,916

272,831

Accounts receivable – related parties

1,254,447

1,727,939

Contract asset

81,241

322,773

Contract asset – related party

119,306

209,673

Prepaid and other current assets

4,137,358

4,979,378

Total current assets

33,158,024

50,688,590

Property and equipment, net

17,260,377

14,184,379

Operating lease right-of-use assets

635,143

702,856

Intangible asset

398,135

398,135

Other assets

141,366

116,751

Total Assets

$

51,593,045

$

66,090,711

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable and other current liabilities

$

3,352,995

$

5,472,464

Accounts payable and accrued interest – related party

50,240

876,007

Contract liability

161,299

186,537

Contract liability – related party

28,292

–

Asset-based loan liability

–

8,212,186

Operating lease liability

280,324

273,545

Total current liabilities

3,873,150

15,020,739

Operating lease liability – non-current

362,510

434,695

Total Liabilities 

4,235,660

15,455,434

Commitments and contingencies

–

–

Stockholders’ Equity

Preferred Stock: 5,000,000 shares authorized; $0.0001 par value; no shares issued and outstanding

Series A convertible preferred stock: 2,000 shares authorized; 0 shares issued and outstanding

–

–

Common stock: 210,000,000 authorized; $0.0001 par value

Class A common stock: 200,000,000 shares authorized; 66,419,851 and 65,324,055 shares issued and outstanding, respectively

6,642

6,532

Class B common stock: 10,000,000 shares authorized; 100,000 shares issued and outstanding

10

10

Additional paid-in capital

142,389,868

140,456,263

Accumulated deficit

(95,039,135)

(89,827,528)

Total Stockholders’ Equity

47,357,385

50,635,277

Total Liabilities and Stockholders’ Equity

$

51,593,045

$

66,090,711

 

SIDUS SPACE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

Three Months Ended

March 31,

2026

2025

Revenue

$

250,155

$

160,704

Revenue – related parties

109,217

77,790

Total – revenue

359,372

238,494

Cost of revenue

1,409,445

1,866,972

Gross loss

(1,050,073)

(1,628,478)

Operating expenses

Selling, general and administrative

4,419,637

4,444,442

Total operating expenses

4,419,637

4,444,442

Net loss from operations

(5,469,710)

(6,072,920)

Other income (expense)

Other income

81,846

100,000

Interest expense

(879)

(75,407)

Interest income

195,613

66,345

Asset-based loan expense

(18,477)

(432,645)

Total other income (expense)

258,103

(341,707)

Loss before income taxes

(5,211,607)

(6,414,627)

Provision for income taxes

–

–

Net loss

(5,211,607)

(6,414,627)

Dividend on Series A preferred Stock

–

–

Net loss attributed to stockholders

$

(5,211,607)

$

(6,414,627)

Basic and diluted loss per common share

$

(0.08)

$

(0.35)

Basic and diluted weighted average number of common shares outstanding

66,583,190

18,228,267

 

SIDUS SPACE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

Three Months Ended

March 31,

2026

2025

Cash Flows From Operating Activities:

Net loss

$

(5,211,607)

$

(6,414,627)

Adjustments to reconcile net loss to net cash used in operating activities:

Stock based compensation

215,127

252,244

Depreciation and amortization

611,606

934,673

Non-cash fees on asset-based loan

–

20,243

Changes in operating assets and liabilities:

Accounts receivable

56,915

366,047

Accounts receivable – related party

473,492

(6,566)

Inventory

–

112,744

Contract asset

241,532

9,332

Contract asset – related party

90,367

–

Prepaid expenses and other assets

817,405

1,258,675

Accounts payable and accrued liabilities

(2,119,469)

255,041

Accounts payable and accrued liabilities – related party

(825,767)

21,172

Contract liability

(25,238)

(16,192)

Contract liability – related party

28,292

–

Changes in operating lease assets and liabilities

2,307

1

Net Cash used in Operating Activities

(5,645,038)

(3,207,213)

Cash Flows From Investing Activities:

Purchase of property and equipment

(3,687,604)

(2,978,308)

Net Cash used in Investing Activities

(3,687,604)

(2,978,308)

Cash Flows From Financing Activities:

Proceeds from issuance of common stock units

–

2,381,247

Proceeds from exercise of warrants

1,718,588

–

Proceeds from asset-based loan agreement

–

3,289,744

Repayment of asset-based loan agreement

(8,212,186)

(417,981)

Repayment of notes payable

–

(3,059,767)

Net Cash provided by (used in) Financing Activities

(6,493,598)

2,193,243

Net change in cash

(15,826,240)

(3,992,278)

Cash, beginning of period

43,175,996

15,703,579

Cash, end of period

$

27,349,756

$

11,711,301

Supplemental cash flow information

Cash paid for interest

$

28,626

$

5,462

Cash paid for taxes

$

–

$

–

Contacts:

 Investor Relations
investor-relations@sidusspace.com

Media Inquiries
press@sidusspace.com

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SOURCE Sidus Space, Inc.

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Technology

tonies® and BBC Studios bring Bluey to the Toniebox, expanding family storytelling through immersive audio play

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June 17, 2026

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Family-favorite Bluey joins tonies’ leading interactive audio platform for childrenBluey stories, interactive Tonieplay experiences, and exclusive products will come to families around the world

PALO ALTO, Calif., June 17, 2026 /PRNewswire/ — tonies SE (“tonies”), the globally leading interactive audio platform for children, announces a partnership with BBC Studios to bring Bluey to the Toniebox for the first time. The collaboration expands one of the world’s most beloved TV series into immersive, audio-first experiences for kids and their families.

Available for pre-order in the U.S. today, June 17, on tonies.com and target.com, the partnership will introduce a range of Bluey experiences designed to inspire play, storytelling and shared family moments, including Classic Tonies, interactive Tonieplay adventures, and themed accessories inspired by the globally celebrated series.

Bluey joins the tonies family at a time of accelerating global growth, with more than 12 million Tonieboxes already sold worldwide. For families, the partnership brings another opportunity to experience Bluey beyond the screen. For tonies, it reinforces the company’s position as the destination for premium children’s storytelling and one of the world’s leading platforms for family entertainment and play.

Tobias Wann, CEO of tonies, says: “At tonies, we’re listening to our audience and responding to what excites them. Few brands capture family connection and playful storytelling quite like Bluey. For years, families around the world have asked for Bluey on the Toniebox, and we are incredibly proud to bring this beloved world to life in a way that feels uniquely tonies. This partnership is another powerful example of why many of the world’s leading family brands trust tonies to thoughtfully extend the stories fans already love.”

Suzy Raia, EVP Global Consumer Products at BBC Studios, adds: “Bluey has always encouraged children to jump into play, and tonies brings that spirit to life in a truly special way. We are especially excited by Tonieplay and how it invites families to actively take part in the stories they love. Together, we’re thoughtfully expanding the Bluey universe through immersive storytelling and play in ways that feel authentic, playful, and true to the heart of the brand.”

Rolling out across North America, DACH, the UK, France, Australia and New Zealand from June through October, the launch introduces families to an exclusive Bluey Tonieplay experience, developed in-house by tonies’ studio and adapted directly from fan-favourite moments from the series. Designed as immersive audio-first play, the experience invites children to step into Bluey’s world through interactive storytelling, playful challenges and adventures, and has been developed in close collaboration with BBC Studios to preserve the heart of Bluey while introducing a new way to engage with its characters and stories through hands-on play.

In addition, three Classic Tonies figurines including Bluey, Bingo, and Muffin will debut in North America, DACH, the UK, France and New Zealand. Themed accessories, including Bluey Listen and Play bags and a Bluey Toniebox 2 sleeve will be available across all markets.

Ginny McCormick, CXO of tonies, adds: “At tonies, we’ve spent more than a decade building expertise in how children naturally listen, imagine and play. That means every experience starts ears-first and every creative choice begins with protecting what families already love about a brand. With Bluey, we’re especially excited to pair that philosophy with our original Tonieplay innovation, creating experiences that help children actively step into a world they already know by heart”.

Since its debut in Australia in 2018, Bluey has built a global fanbase and become one of the world’s most-watched animated TV series. Known for its heartwarming storytelling, humour, and celebration of play and family life, the show has grown into a cultural phenomenon. Its success has been widely recognised across the industry, earning accolades from a BAFTA to multiple Emmy Awards, as well as the 2026 Toy of the Year Award for “License of the Year” for the second consecutive year.

Pre-order is live now at https://us.tonies.com/collections/bluey-collection & www.target.com.

About tonies

tonies® is the globally leading interactive audio platform for children redefining how children aged 1 to 9+ play, learn, and grow independently without screens. Since its founding in Germany in 2014, around 12.2 million Tonieboxes and over 165 million Tonies have been sold worldwide.

On average, children engage with tonies for ~280 minutes per week, making it a trusted everyday companion that brings the joy and magic of interactive audio entertainment and education into family life worldwide.

The intuitive and award-winning system – centered around Toniebox 2 – offers a portfolio of around 1,500 Tonies figurines and about 20 Tonieplay games and more than 3,500 digital titles via mytonies (library and app) – ranging from tonies Originals® to licensed content from around 350 partners including Disney, Warner Bros., NBC Universal, Mattel, Marvel, Paramount, Hasbro, Universal, Sony Music.

tonies is rapidly expanding its platform globally. Besides DACH, central growth regions include tonies’ largest market, North America, the United Kingdom and Ireland, France, Australia and New Zealand, with Tonieboxes now active in over 100 countries. tonies employs more than 630 people, achieved EUR 630 million in group revenue in fiscal year 2025 (+31% yoy), and is listed in the SDAX segment of Frankfurt Stock Exchange (tonies SE).

About Bluey

The series follows Bluey, a loveable, inexhaustible, blue heeler dog who lives with her Mum, Dad and her little sister, Bingo. Bluey uses her limitless energy to play games that unfold in unpredictable and hilarious ways, bringing her family and the whole neighbourhood into her world of fun.

Bluey is produced by Ludo Studio for ABC KIDS (Australia) and co-commissioned by ABC Children’s and BBC Studios Kids & Family. Financed in association with Screen Australia, Bluey is proudly 100% created, written, animated, and post produced in Brisbane Queensland, Australia, with funding from the Queensland Government through Screen Queensland and the Australian Government.

In Australia, the show is broadcast on ABC. The series airs and streams to U.S. and global audiences (outside of Australia, New Zealand, and China) across Disney Channel, Disney Jr., and Disney+ through a global broadcasting deal between BBC Studios and Disney Branded Television.

Bluey | Website | Facebook | Instagram | TikTok | YouTube 

About Ludo Studio

Ludo Studio is a BAFTA, multi-Emmy®, Logie and Peabody award-winning Australian studio and one of TIME’s Most Influential Companies of 2024, that creates and produces original scripted drama, animation and digital stories that are authored by incredible local talent, distributed globally and loved by audiences everywhere.

ludostudio.com.au

About BBC Studios Brands & Licensing

The BBC Studios Brands & Licensing division is the driving force in extending BBC Studios IP through innovative brand extensions, fostering deep fan engagement worldwide. Partnering our iconic brands – including Doctor Who and Bluey – with the world’s biggest brands, promoters, and publishers, ignites the imagination of fans and creates memorable brand-fame moments. Our diverse portfolio spans consumer products, live entertainment, gaming, and publishing, while BBC Studios Digital drives over 1 billion views per month, offering advertising and branded content opportunities. Supported by award-winning teams, we focus on finding visionary opportunities to enhance global brand impact and digital growth.

BBC Studios | Website | Press Office | X | LinkedIn | Instagram 

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Avalara CRUSH Europe 2026 Brings Tax and Compliance Leaders Together for the Agentic AI Era

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June 17, 2026

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Customers and partners invited to register and hear directly from leaders transforming tax and compliance with AI

LONDON, June 17, 2026 /PRNewswire/ — Avalara, Inc., the agentic AI leader in global tax and compliance, today announced that registration is open for Avalara CRUSH Europe 2026, the company’s premier customer and partner event. Taking place on 8 October 2026 at The Dorchester in London, CRUSH Europe will bring together tax, finance, accounting, e-commerce, and technology leaders to explore how agentic AI is transforming tax and compliance.

Registration is now open at events.avalara.com/event/Europe/Home.

“Compliance leaders across Europe are being asked to navigate unprecedented regulatory change while finding new ways to drive efficiency and growth,” said Danny Fields, Chief Technology and Customer Operations Officer at Avalara. “CRUSH Europe is an opportunity for customers and partners to learn from industry experts, connect with peers, and see firsthand how agentic AI is transforming tax and compliance from a manual business burden into a strategic, automated advantage.”

Attendees can expect a curated agenda that includes:

Visionary keynotes and roundtables on agentic AI and the future of global tax and complianceLive product demonstrations showcasing Avalara’s most advanced technology, including Avi, Avalara’s AI tax and compliance agent, with capabilities spanning e-invoicing, tariff classification, exemption certificate management, and real-time tax code predictionFireside chats and customer stories featuring real-world perspectives from businesses navigating today’s most complex compliance challengesNetworking opportunities to connect with peers, Avalara leaders, and partners shaping the future of the industry

Space is limited at CRUSH Europe 2026 and early registration is encouraged.

Event Details
Date: 8 October 2026
Location: The Dorchester, London, UK
Registration: events.avalara.com/event/Europe/Home 

About Avalara
Avalara is the agentic AI platform for global tax and compliance. For more than two decades, Avalara has built one of the most expansive libraries of tax content and integrations in the industry, processing more than 54 billion transactions annually and supporting millions of businesses worldwide. The company’s purpose-built AI agents automate end-to-end compliance with greater precision, from tax calculations and return filings to exemption certificate management and beyond. For more information, visit Avalara.com.

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Digital champions CEE 2026: Total valuation nears 128 billion USD as deeptech and relocations reshape the region

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June 17, 2026

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WARSAW, June 17, 2026 /PRNewswire/ — The Digital Poland Foundation published the 5th edition of the Digital Champions CEE 2026 report. The ranking of the 100 most valuable technology companies in Central and Eastern Europe reveals a combined market capitalisation of USD 127.9 billion — a robust year-on-year growth of 9.36%. Yet the headline figure only tells part of the story: had all companies that have since relocated or been acquired remained in the ranking, the total value would likely exceed USD 170 billion. The fifth edition of the report maps not only how the region has grown, but also where its most valuable assets have gone — and why.

Top 100 tech companies valued at USD 127.9 billion — and the USD 170 billion reality behind them

At the end of 2025, the 100 largest technology companies in Central and Eastern Europe achieved a combined market capitalisation of USD 127.9 billion, narrowing the gap to the region’s 2021 peak and confirming the continued resilience of the regional digital economy. The strongest growth came from the region’s largest players — the so-called “Digital Phoenixes” valued above USD 1 billion — whose combined valuation increased by 14.58% year-on-year to USD 101.05 billion.

However, the report highlights that official data significantly understates the true scale of value created by the region’s innovators. Many leading firms originating from the CEE region — such as ElevenLabs, Grammarly, ICEYE, Rimac, and Avast — have relocated their headquarters to the United States or the United Kingdom to raise capital or have been acquired by multinational corporations, removing them from the ranking. According to the authors of the report, if these mature companies still met the geographic criteria of the index, the total value of the top 100 technology companies from the CEE region would already exceed USD 170 billion.

“When the inaugural Digital Champions CEE ranking was launched, the region was framed as a ‘Digital Phoenix’ — a symbol of ambitious transformation emerging from post-communist economies. Five editions later, the trajectory remains strong, but the narrative has evolved. Against a backdrop of intensified global headwinds, companies across Central and Eastern Europe have shifted from rapid acceleration to more disciplined, resilient growth. This maturation has sharpened strategic focus: for many organisations, it has unlocked new avenues for expansion and innovation; for others, it has introduced heightened competitive pressure and a more complex, unpredictable operating environment,” said Radzym Wójcik, Counsel at Baker McKenzie.

Poland leads while the Baltics dominate by intensity

Poland remains the region’s largest technology ecosystem in absolute terms, accounting for USD 47.39 billion — or 37.05% — of the total regional value, with 42 companies in the Top 100 ranking. It is also the only market showing strength across all company maturity levels, from emerging scaleups to multi-billion-dollar champions.

The Baltic states, however, continue to outperform the region when measured by capitalisation intensity per capita. Estonia achieved the highest score in the ranking, significantly ahead of all other countries, while Lithuania recorded a 123.97% increase in total capitalisation since 2021. Latvia emerged as the fastest climber by intensity growth over the five-year period.

Together, Poland, Estonia, Lithuania, and Czechia now account for nearly 78% of the region’s total technology value. Croatia delivered the strongest long-term growth in percentage terms, with ecosystem value increasing by 170.7% since 2021, while Bulgaria nearly doubled its market capitalisation over the same period.

Deeptech and defence-related innovation reshape the ecosystem

While e-commerce and marketplace platforms remain the region’s largest value category, accounting for more than 36% of total capitalisation, the report identifies a major structural shift toward deeptech, space technology, healthtech, and dual-use innovation.

The “other” category — which includes deeptech and space tech companies — recorded the strongest year-on-year growth in the entire ranking, surging 87.59%. New high-value entrants such as EnduroSat and Creotech Instruments reflect increasing investor appetite for companies addressing defence, logistics, infrastructure, and strategic resilience.

“The composition of the ranking is also evolving. E-commerce, SaaS and fintech remain the backbone of CEE’s digital economy, but the list now points to a broader and more strategic technology base: robotics, space and Earth observation, cybersecurity, AI-native software, digital health, sovereign cloud and other infrastructure-oriented businesses. This shift shows that CEE is moving beyond consumer platforms and software scale-ups toward technologies directly linked to Europe’s productivity, security, resilience and digital sovereignty,” said Wojciech Świercz, Partner at Arthur D. Little.

Record VC exits confirm ecosystem maturity

The report also documents record levels of venture capital-backed exits across the region. Following 82 exits in 2024 — the highest number ever recorded — the ecosystem sustained momentum with 81 exits in 2025.

This marks a dramatic increase compared with just 31 exits in 2015 and confirms that Central and Eastern Europe has evolved from an emerging startup market into a mature ecosystem capable of producing a consistent pipeline of acquisition-ready and IPO-ready companies.

Venture capital investment across the region reached EUR 2.71 billion in 2025. However, the report notes that this figure includes approximately EUR 730 million in funding rounds raised by companies that had already relocated their headquarters outside the region. Those excluded rounds included major transactions involving ElevenLabs, ICEYE, Tachyum, and MaintainX.

The relocation dilemma: nearly half of CEE value has left the region

One of the report’s central conclusions concerns the increasing relocation of the region’s most successful technology companies to the United States and the United Kingdom.

According to data cited in the report, 48% of CEE scaleups have moved their headquarters abroad, primarily to access larger pools of growth capital. The United States attracts 56% of relocating companies, while the United Kingdom alone accounts for nearly one-quarter of all relocations. The report warns that this trend presents a broader strategic challenge for Europe’s competitiveness.

“Europe is increasingly being reduced to a highly skilled research and development layer for the American technology sector. Ideas are incubated locally, products are built locally, but the companies are ultimately financed, scaled, and frequently acquired by US capital,” said Piotr Mieczkowski, Managing director at Digital Poland Foundation.

Ukraine represents the most acute example of this dynamic. While the number of Ukrainian companies formally included in the ranking has declined sharply since 2021, many continue to maintain engineering and R&D operations within Ukraine despite relocating corporate headquarters abroad to secure international financing and ensure business continuity.

A new generation of CEE champions emerging

The report also reveals accelerating generational change within the regional ecosystem. Companies founded between 2017 and 2021 recorded the fastest valuation growth of any cohort, increasing their collective value by 189.09% since the first edition of the ranking.

At the same time, a core group of 49 companies has remained in the Top 100 throughout all five editions of the report, demonstrating the growing stability and resilience of the region’s leading technology players.

“Innovation today is the foundation of competitiveness, resilience and technological sovereignty for Poland and Europe. This is why BGK actively engages in building the innovation financing ecosystem through the Innovate Poland initiative, including the Future Tech Poland fund, as well as through the BGK Vinci investment fund. We also invest directly in funds supporting modern technological infrastructure. The Digital Champions CEE 2026 report demonstrates that our region possesses the talent, ambition and entrepreneurial strength which — with the right support — can translate into the growth of future European and global technology leaders,” said Jarosław Dąbrowski, Member of the Management Board at Bank Gospodarstwa Krajowego.

About the report

Digital Champions CEE 2026 is the fifth edition of the annual ranking of the 100 most valuable technology companies in Central and Eastern Europe. The report was first presented to the public at the Private Equity Insights Poland & CEE 2026 conference in Warsaw. The report covers both publicly listed and privately held companies across the broader CEE region, including the Baltic states and non-EU countries such as Serbia and Albania, while excluding Russia, Belarus, and Austria. The report is based on data from leading transaction monitoring platforms such as CB Insights, Crunchbase, Dealroom, PitchBook, Tracxn, PitchBook and Preqin, and is the result of collaboration with selected VC/PE funds and associations in the CEE region. The report is available to download free of charge from the Digital Poland foundation’s website. Arthur D. Little and Poland’s Bank Gospodarstwa Krajowego are strategic partners of the report; Baker McKenzie, MCI Capital and PFR Ventures are partners.

Photo – https://mma.prnewswire.com/media/2993269/Digital_Champions_CEE_Ranking.jpg
Logo – https://mma.prnewswire.com/media/2993268/5999426/Digital_Poland_Logo.jpg

Media contact:
Piotr Mieczkowski
Managing Director
Digital Poland Foundation
piotr.mieczkowski@digitalpoland.org
+48 605 132 645

 

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