Virgin Galactic (SPCE) Q3 2024 earnings summary

Executive summary

• Entered the build phase for Delta Class spaceships, with assembly to begin in Q1 2025 and commercial service targeted for 2026; Unity flights paused to focus on Delta development.

• Expanded fleet plans include a third and fourth spaceship and a second mothership, with commercial service for the new mothership targeted for 2028.

• Net loss narrowed to $74.5 million–$75 million from $104.6 million–$105 million year-over-year, and adjusted EBITDA improved to $(59) million from $(87) million.

• $37 million raised through at-the-market equity offering; $108.7 million gross proceeds from share sales under the 2023 ATM Program.

• Settled litigation with Boeing in October 2024, resolving all related disputes and benefiting R&D expenses.

Financial highlights

• Q3 2024 revenue was $0.4 million, down from $1.7 million year-over-year, mainly due to a pause in commercial spaceflights.

• Operating expenses for Q3 2024 were $82 million–$82.1 million, down from $116 million–$116.0 million year-over-year.

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

• Free cash flow was negative $118 million, compared to negative $105 million in Q3 2023.

• Cash, cash equivalents, and marketable securities totaled $744 million at quarter end, including $32 million in restricted cash.

Outlook and guidance

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

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

• Commercial service for Delta Class spaceships remains on track for 2026, with positive operating cash flow expected once the first two Delta ships enter service.

• Second-generation mothership program targets commercial service in 2028 and beyond.

• Accelerated fleet expansion with growth capital could double revenue and quadruple EBITDA by 2028.