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Jun 30, 2025
Virgin Galactic Q2 2025 Earnings Report
Virgin Galactic announced its second quarter 2025 financial results, reporting a significant decrease in revenue due to a pause in commercial spaceflights, while also showing improvements in net loss and operating expenses compared to the previous year.
Key Takeaways
Virgin Galactic reported a revenue of $0.4 million for Q2 2025, a substantial decrease from $4.2 million in Q2 2024, primarily due to the halt in commercial spaceflights to focus on Delta Class SpaceShips production. Despite this, the company reduced its net loss to $67 million from $94 million year-over-year, driven by lower operating expenses. The company maintains a strong cash position of $508 million and expects commercial service to resume in 2026.
Revenue for Q2 2025 was $0.4 million, a significant drop from $4.2 million in Q2 2024, attributed to the pause in commercial spaceflights.
Net loss improved to $67 million in Q2 2025, down from $94 million in Q2 2024, primarily due to reduced operating expenses.
GAAP total operating expenses decreased to $70 million from $106 million in the prior year's quarter, with non-GAAP total operating expenses also falling to $58 million from $95 million.
The company maintained a strong cash position with $508 million in cash, cash equivalents, and marketable securities as of June 30, 2025, and generated $56 million from common stock issuance.
Forward Guidance
Virgin Galactic expects free cash flow for the third quarter of 2025 to be in the range of $(100) million to $(110) million. The company continues to target commercial spaceflight for 2026, with both research and private astronaut flights anticipated to begin in the fall of 2026.
Positive Outlook
- Commercial spaceflight remains on track for 2026.
- Both research and private astronaut flights are expected to commence in the fall of 2026.
- SpaceShip wing assembly and feather assembly are expected to be completed during Q4 2025.
- SpaceShip fuselage is expected to be completed late Q4 2025 or early Q1 2026.
- Feasibility study for a second spaceport in Italy is progressing.
Challenges Ahead
- Free cash flow for Q3 2025 is projected to be between $(100) million and $(110) million, indicating continued cash burn.
- The company has not provided a reconciliation of forward-looking free cash flow to GAAP measures due to substantial uncertainty.
- Future results may be materially affected by factors such as delays in commercial flights.
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