TLDR
- Virgin Galactic reported a Q3 2025 net loss of $64 million, down from $75 million in the same quarter last year with operating expenses declining 19%.
- The company maintains $424 million in cash reserves and anticipates receiving 90% of first SpaceShip parts by December 2025.
- Commercial spaceflight operations remain on schedule for Q4 2026 following flight tests in Q3 2026, with 125 annual missions planned.
- Virgin Galactic will open ticket sales in Q1 2026 for seats priced at $600,000, targeting $450 million in annual revenue at full operation.
- Most existing customers are expected to fly in 2027 once the company reaches its planned flight rate of three to four missions weekly.
Virgin Galactic unveiled its third-quarter 2025 earnings, demonstrating steady progress toward becoming a commercial spaceflight operator. The company posted a $64 million net loss for the quarter.
This figure represents a decline from the $75 million loss recorded during Q3 2024. Operating expenses fell 19% to $67 million compared to $82 million in the previous year’s quarter.
Revenue reached $400,000 for the three-month period. The company generated these funds through future astronaut access fees.
Virgin Galactic Holdings, Inc., SPCE
Virgin Galactic finished the quarter holding $424 million in cash, cash equivalents, and marketable securities. The space tourism company raised $23 million via its at-the-market equity program during the quarter.
New SpaceShip Construction Updates
CEO Michael Colglazier shared manufacturing progress on the company’s next-generation spacecraft. Virgin Galactic projects having about 90% of carbon and metallic components for its first SpaceShip by mid-December.
The company resolved previous supply chain challenges with the forward fuselage section. The lower skin component arrived within the company’s expected extended delivery window.
Current forecasts show the first fuselage completing somewhat earlier than last quarter’s projections. Flight testing continues to target a Q3 2026 start date.
The first revenue-generating spaceflight remains planned for Q4 2026. These timelines haven’t changed materially from previous company guidance.
Virgin Galactic plans opening its initial ticket sales window in Q1 2026. Customers will purchase seats on the new SpaceShip fleet at that point.
Scaling to Full Operations
The space tourism operator detailed plans to reach 125 annual missions using two SpaceShips. At current pricing of $600,000 per seat, this would deliver approximately $450 million in yearly revenue.
Leadership projects this flight volume would yield around $100 million in adjusted EBITDA at steady-state operations. Virgin Galactic enhanced its Eve carrier aircraft to support expanded capacity.
The Eve vehicle now handles SpaceShip launches on consecutive days. The company targets averaging three to four weekly flights.
Current ticket holders should predominantly fly during 2027. This aligns with the enhanced operational capabilities coming online.
Fourth Quarter Projections
Virgin Galactic anticipates Q4 2025 revenue near $300,000 from astronaut access fees. Free cash flow for the period should land between negative $90 million and negative $100 million.
Expenditures will keep decreasing through Q3 2026. Spending increases when commercial service commences in Q4 2026.
Capital spending totaled $51 million in Q3 versus $39 million in the year-ago period. Property, plant and equipment stood at $350 million at quarter-end, up 67% from December 2024.
Adjusted EBITDA was negative $53 million compared to negative $59 million one year prior. Free cash flow came in at negative $108 million, an 8% improvement year-over-year.
The company hired a Chief Growth Officer to support its transition to commercial readiness. Virgin Galactic continues preparing operational infrastructure as the launch window approaches.
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