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 the 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 program beginning October 2026 and rocket production starting in Q4 2026.

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

• Significant debt redemptions and exchanges completed, reducing outstanding 2027 and 2028 Notes and improving liquidity.

• 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, including $31 million in restricted cash.

• 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 was $(91) million, a 20% improvement YoY.

• Net loss for Q2 2026 was $55.9 million, improved from $67.3 million YoY; adjusted EBITDA was $(52) million, consistent with the prior year.

• Net loss per share for Q2 2026 was $(0.50), improved from $(1.47) YoY; weighted-average shares outstanding increased to 110.8 million from 45.6 million YoY.

• Free cash flow for Q3 2026 expected between $(95) million and $(100) million; Q4 2026 expected to improve to $(80) million to $(90) million.

Outlook and guidance

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

• Positive quarterly cash flow anticipated within 2027, supported by a targeted flight rate of 10+ spaceflights per month by end of Q2 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.

• With two fully utilized spaceports, adjusted EBITDA could surpass $1 billion annually.

• 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.