Virgin Galactic

SPCE Q1 2025 Earnings

Reported May 15, 2025 at 4:07 PM ET · SEC Source

Q1 25 EPS

$-2.38

BEAT +6.79%

Est. $-2.55

Q1 25 Revenue

$461,000

BEAT +61.35%

Est. $285,710

vs S&P Since Q1 25

-52.3%

TRAILING MARKET

SPCE -28.9% vs S&P +23.4%

Market Reaction

Did SPCE Beat Earnings? Q1 2025 Results

Virgin Galactic delivered a pair of beats in its Q1 2025 earnings results, topping expectations on both the top and bottom lines even as the company remains deep in its development phase. The space-tourism firm posted a loss of $2.38 per share, beati… Read more Virgin Galactic delivered a pair of beats in its Q1 2025 earnings results, topping expectations on both the top and bottom lines even as the company remains deep in its development phase. The space-tourism firm posted a loss of $2.38 per share, beating the consensus estimate of $2.55 by 6.79%, while revenue of $461,000 cleared estimates of $285,710 by 61.35%, though it fell sharply from $1.99 million a year ago, a 76.8% decline that reflects the deliberate pause in commercial spaceflights to concentrate resources on Delta Class SpaceShip construction. The most meaningful driver of the earnings beat was disciplined cost management, with total GAAP operating expenses falling to $88.91 million from $113.14 million and R&D spending roughly halved to $33.31 million. The company's stock surged more than 35% following the report, aided in part by news that private astronaut ticket prices on the new Delta Class ships are expected to exceed $600,000. With $567 million in cash on hand and commercial spaceflights targeted for 2026, Virgin Galactic guided Q2 free cash flow at negative $105 million to negative $115 million as capital deployment remains elevated.

Key Takeaways

  • Lower total operating expenses drove improvement in net loss and Adjusted EBITDA year-over-year
  • Significant reduction in R&D spending from $59.0 million to $33.3 million
  • Improved operating cash flow due to lower cash burn from operations
24/7 Wall St

SPCE YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

SPCE Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 25

“The first quarter demonstrated strong progress advancing the build of our new SpaceShips and keeping pace with our plans to begin commercial spaceflight in 2026. The assets being built as we march through our pre-revenue phase are tremendous, and we expect them to open up a powerful and profitable business model that will benefit from an industry-leading cost structure, fixed-cost leverage as we scale, and an unparalleled customer experience.”

— Michael Colglazier, Q1 2025 Earnings Press Release