Virgin Galactic (SPCE) Q4 2025 earnings summary

Executive summary

• Achieved major milestones in spaceship assembly and production, with structural completion and ground testing set for April 2026, and first commercial spaceflight targeted for Q4 2026; second SpaceShip expected between late Q4 2026 and early Q1 2027.

• Opened sales for spaceflight expeditions at $750,000 per seat, with plans to increase prices in future tranches and launched a new commercial website and astronaut portal.

• Shifted operational focus from R&D to manufacturing and production, hiring a Chief Growth Officer to drive sales, partnerships, and expansion, including new spaceports.

• Upgraded launch vehicle Eve to support up to 12-15 flights per month, extending service life to 2032 or beyond.

• Significant reduction in operating expenses and net loss year-over-year as focus shifted to manufacturing and fleet expansion.

Financial highlights

• Q4 2025 revenue was $0.3 million, down from $0.4 million in Q4 2024, mainly from access fees; full-year 2025 revenue was $2 million, down from $7 million in 2024 due to paused commercial flights.

• Q4 2025 operating expenses fell 26% to $61 million; net loss improved 18% to $63 million.

• Adjusted EBITDA for Q4 2025 improved 23% to -$49 million; free cash flow was -$95 million, a 19% improvement.

• Full-year 2025 net loss was $279 million, a 20% improvement; adjusted EBITDA was -$226 million, a 22% improvement.

• Ended 2025 with $338 million in cash and marketable securities; CapEx was $198 million, up from $122 million in 2024.

Outlook and guidance

• Commercial service expected to begin in Q4 2026, with initial cadence of four flights per month, ramping to 8 and then 10+ flights per month by Q2 2027.

• Free cash flow for Q1 2026 projected at -$90 million to -$95 million, with sequential improvement expected each quarter.

• Modestly positive quarterly cash flow targeted within 2027, scaling in 2028 as higher-priced tickets are flown.

• Anticipates economies of scale as fleet expands, with projected annual revenue of $990 million and adjusted EBITDA of $450 million–$500 million at full scale.

• Revenue per flight will rise as new tranches are sold at higher prices.