Virgin Galactic (SPCE) Q1 2025 earnings summary

Executive summary

• Significant progress made in Delta Class Spaceship development, with first research spaceflight targeted for summer 2026 and private astronaut flights in fall 2026.

• Commercial flights paused to focus on production, with new ticket sales expected to open in Q1 2026.

• Net loss improved to $84–$84.5 million from $102 million year-over-year, driven by lower operating expenses.

• Raised $31 million in gross proceeds through at-the-market equity offerings.

• Feasibility study for a new spaceport in Italy is underway, with strong government support.

Financial highlights

• Q1 2025 revenue was $0.5 million, down from $2.0 million in Q1 2024, mainly from future astronaut access and event fees.

• Operating expenses decreased to $89 million (GAAP) and $80 million (non-GAAP), reflecting disciplined cost management.

• Adjusted EBITDA improved to -$72 million from -$87 million year-over-year.

• Free cash flow was -$122 million, a slight improvement from -$126 million year-over-year.

• Capital expenditures rose to $46 million from $13 million year-over-year, driven by manufacturing investments.

Outlook and guidance

• Q2 2025 revenue expected to be about $400,000, with free cash flow projected between -$105 million and -$115 million.

• Commercial service expected to resume in 2026, with research flights in summer and private astronaut flights in fall.

• Cash spending anticipated to decline through 2025 as peak investment phase concludes.

• Targeting free cash flow burn below $100 million by Q4 2025, with positive cash flow expected in 2026 as commercial operations begin.

• Long-term steady-state revenue projected at $450 million annually with $90–$100 million EBITDA once two Spaceships and carrier are operational.