Virgin Galactic (SPCE) Q4 2025 earnings summary

Executive summary

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

• Major milestones achieved in spaceship assembly, with the first new SpaceShip nearing ground test phase in April 2026 and commercial operations targeted for Q4 2026; the second new SpaceShip expected to enter service between late Q4 2026 and early Q1 2027.

• Hired 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.

• Capital realignment transactions executed in December 2025, reducing debt obligations by $142 million and extending maturity to 2028.

Financial highlights

• Q4 2025 revenue was $0.3 million, down from $0.4 million in Q4 2024; full-year 2025 revenue was $2 million, down from $7 million in 2024 due to a pause in 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; full-year free cash flow was -$438 million, improved from -$475 million YoY.

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

• $12 million raised in Q4 and $122 million for the year through at-the-market equity offerings.

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.

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

• Commercial spaceflight operations with new SpaceShips expected to ramp up from Q4 2026 into early 2027.