Virgin Galactic (SPCE) investor relations material

Executive summary

• Commercial service and private astronaut flights are targeted for fall 2026, with significant progress in next-generation spaceship assembly and testing.

• Revenue declined to $0.4 million from $4.2 million year-over-year due to a pause in commercial flights and focus on new vehicle production.

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

• Strong cash position maintained, with over $500 million in cash, cash equivalents, and marketable securities.

• Settlement terms for a major class action were reached, with most costs covered by insurance.

Financial highlights

• Q2 2025 revenue was $0.4 million, primarily from astronaut access fees, down from $4.2 million year-over-year.

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

• Adjusted EBITDA improved to negative $52 million from negative $79 million year-over-year.

• Free cash flow was negative $114 million in Q2, unchanged or slightly improved from the prior year.

• Capital expenditures increased to $58 million in Q2, up from $34 million year-over-year.

Outlook and guidance

• Commercial service and private astronaut flights remain on track for fall 2026, with sales reservations reopening in Q1 2026.

• Free cash flow for Q3 2025 is expected between negative $100 million and negative $110 million.

• Management believes current capital is sufficient to deliver the initial fleet and sustain operations for at least twelve months.

• Cash spending projected to decline through 2025 and into 2026.