Virgin Galactic (SPCE) Q3 2024 earnings summary

Executive summary

• Entered the build phase of the Delta Class spaceship program, with commercial service targeted for 2026 and design work advancing on a second mothership for future growth.

• Revenue declined to $0.4 million from $1.7 million year-over-year due to a pause in commercial spaceflights, as focus shifted to Delta Class production.

• Net loss improved to $75 million from $105 million year-over-year, with adjusted EBITDA at $(59) million, compared to $(87) million.

• Free cash flow was negative $118 million, compared to negative $105 million in the prior year period.

• $37 million raised through an at-the-market equity offering.

Financial highlights

• Q3 2024 revenue was $402,000, primarily from Future Astronaut membership fees.

• Operating expenses were $82 million, down from $116 million year-over-year, due to lower R&D and SG&A.

• Capital expenditures rose to $39 million from $13 million year-over-year, reflecting investment in Delta-class fleet development.

• Cash, cash equivalents, and marketable securities totaled $744 million at quarter end.

• Adjusted EBITDA for the quarter was $(59.3) million, compared to $(87.3) million year-over-year.

Outlook and guidance

• Q4 2024 free cash flow expected to be negative $115 million to $125 million.

• Commercial operations for Delta ships expected in 2026, with full fleet and second mothership targeted for 2028.

• Spending to peak in Q1 2025 due to tooling and parts payments, then decline through the rest of 2025 as assembly and testing progress.

• Current capital is expected to sustain operations for at least the next twelve months.