Virgin Galactic (SPCE) Q2 2025 earnings summary

Executive summary

• Commercial service and private astronaut flights remain on track for 2026, with research flights also expected in the fall; significant progress continues on next-generation spaceship production and assembly.

• Revenue declined to $0.4 million from $4.2 million year-over-year due to a pause in commercial spaceflights, as focus shifted to new vehicle development.

• Net loss improved to $67 million from $94 million year-over-year, driven by lower operating expenses.

• Strong cash position with over $500 million in cash, cash equivalents, and marketable securities as of June 30, 2025.

• Settlement terms for the Lavin class action were reached, with a $2.9 million net settlement expense recorded and most of the $8.5 million gross settlement covered by insurance.

Financial highlights

• Q2 2025 revenue was $0.4 million, primarily from future astronaut access fees, down from $4.2 million in Q2 2024.

• Operating expenses decreased to $70 million from $106 million year-over-year, reflecting a shift from R&D to manufacturing investments.

• Adjusted EBITDA improved to -$52 million, a 34% year-over-year improvement.

• Free cash flow was -$114 million, unchanged from the prior year quarter.

• Cash, cash equivalents, and marketable securities totaled $508 million as of June 30, 2025.

Outlook and guidance

• Commercial service and private astronaut flights remain on track for fall 2026, with research flights also expected in that timeframe.

• Q3 2025 free cash flow is expected to be between -$100 million and -$110 million.

• Capital on hand is expected to be sufficient to deliver the initial fleet of new spaceships and sustain operations for at least the next twelve months.

• Ticket sales for private astronaut flights expected to reopen in Q1 2026, with last stated price at $600,000 per ticket.