Virgin Galactic (SPCE) Q2 2026 earnings summary

Executive summary

• Spaceflight expeditions at $750,000 per seat were oversubscribed, adding over $50 million to expected future revenue, with bookings fully allocated and next tranche to be released at higher prices in fall 2026.

• First commercial spaceflight delayed to February 2027 due to cumulative installation delays, with flight test phase beginning October 2026 and positive quarterly cash flow targeted within 2027.

• Astronaut community exceeds 700 members, with a notable increase in multi-seat and group bookings, including research and nonprofit missions across 12 countries.

• Spaceship manufacturing and static test articles are progressing, with rocket production starting in Q4 2026.

• Settlements reached in key legal and derivative actions, with payments covered by insurers and corporate reforms pending court approval.

Financial highlights

• Raised $134 million through an at-the-market equity offering, ending Q2 2026 with $286 million in cash, cash equivalents, and marketable securities.

• Q2 2026 operating expenses were $65 million (down from $70 million YoY); capital expenditures were $41 million (down from $58 million YoY).

• Free cash flow for Q2 2026 was $(91) million, a 20% improvement YoY; adjusted EBITDA was $(52) million.

• Net loss for Q2 2026 was $55.9 million, improved from $67.3 million YoY; net loss per share was $(0.50), improved from $(1.47).

• Principal on 2027 and 2028 notes reduced by $93 million; $17.9 million remains on 2027 notes, with no required payments on 2028 notes until March 2028.

Outlook and guidance

• Commercial spaceflight operations to begin in February 2027, with revenue recognition and customer cash inflows starting at that time.

• Q3 2026 revenue expected at $400,000; Q3 free cash flow projected between $(95) million and $(100) million; Q4 free cash flow expected to improve to $(80) million to $(90) million.

• Flight rate of 10+ spaceflights per month targeted by end of Q2 2027, supporting positive quarterly cash flow within 2027.

• Adjusted EBITDA expected to reach $100 million annualized with two ships; potential to exceed $450 million with four ships and one launch vehicle at a single spaceport.

• Uncertainty remains regarding sufficiency of cash and marketable securities to fund operations for the next twelve months, raising substantial doubt about ability to continue as a going concern.