Companies /Industrials

Virgin Galactic Holdings Inc - Class A

NYSE: SPCE Aerospace & Defense
$2.98
▼ $0.02 (−0.72%) today
Markets open · 10:34am ET

Q1 2026 Earnings

Reported May 14, 2026, 4:08pm ET · SEC source
$-0.81
Beat +13.83%
EPS · est. $-0.94
$227,000
Miss −5.42%
Revenue · est. $240,000
+24.0%
Beating market
SPCE vs S&P since report
7 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%+8%May 14May 15report 4:08pm ETearnings−1.5%+0.7%
−4%0+4%+8%May 14May 15earnings−1.5%+0.7%
SPCE +0.7%S&P 500 −1.5%
0+5%+10%May 14May 15report 4:08pm ETearnings−2.0%+0.7%
0+5%+10%May 14May 15earnings−2.0%+0.7%
SPCE +0.7%NASDAQ −2.0%
−18%−9%0+9%May 13May 22report 4:08pm ETearnings−0.3%+12.4%
−18%−9%0+9%May 13May 22earnings−0.3%+12.4%
SPCE +12.4%S&P 500 −0.3%
−18%−9%0+9%May 13May 22report 4:08pm ETearnings−0.4%+12.4%
−18%−9%0+9%May 13May 22earnings−0.4%+12.4%
SPCE +12.4%NASDAQ −0.4%
−2.43%
Day of report
−8.19%
Next session
+15.30%
One week
+24.20%
30 days

S&P 500 over the same 30 days: +0.24%.

Did SPCE Beat Earnings? Q1 2026 Results

Virgin Galactic delivered a mixed but broadly encouraging set of Q1 2026 results, posting a loss per share of $0.81 that cleared the $0.94 consensus estimate by 13.83%, extending the company's streak of beating EPS expectations to four consecutive quarters. Revenue came in at $227,000, a 5.42% miss against the $240,000 estimate and a sharp 50.8% decline from a year earlier, with the modest figure consisting entirely of access fees from future astronauts. The real story behind the narrower-than-expected loss was a significant pullback in operating costs, as total operating expenses fell to $65.82 million from $88.91 million a year ago, with R&D spending dropping to $6.71 million from $33.31 million as the program transitions from development into operational ground testing. The company's first next-generation SpaceShip has moved from the Assembly hangar into the Test-and-Launch hangar, keeping flight testing on track for Q3 2026 and a first commercial spaceflight for Q4 2026, a timeline that has drawn renewed analyst confidence. Free cash flow guidance for Q2 2026 sits at negative $87 million to negative $92 million, with sequential improvement expected through year-end.

Key Takeaways
  • Lower total operating expenses drove improved net loss and Adjusted EBITDA
  • Research and development expenses declined significantly from $33.3 million to $6.7 million year-over-year
  • Spaceline operations costs increased from $20.8 million to $29.6 million as vehicle development shifts to testing phase
  • Cash burn reduction with free cash flow improving from $(122) million to $(93) million

“We've delivered the first of our new SpaceShips from our Assembly hangar to our Test-and-Launch hangar, ground testing of that SpaceShip is underway, and we remain on track to commence flight testing in Q3 and spaceflight in Q4 of this year. Spending continues to decline quarter by quarter, debt retirements are being made on or ahead of schedule, and cash balances are being maintained at appropriate levels as we work through the final quarters of our pre-revenue phase and prepare for the launch of commercial spaceflight operations.”

Virgin Galactic CEO, on the earnings call

Forward Guidance & Outlook

Free cash flow for Q2 2026 is expected in the range of $(87) million to $(92) million. For the remainder of 2026, quarterly free cash flow is expected to show sequential improvement from Q2. Flight testing remains on track for Q3 2026 and the first spaceflight for Q4 2026. Post-quarter, the company raised approximately $52 million through its at-the-market offering program and announced an offer to redeem $10 million of debt due September 2026 by issuing common stock, which upon completion would leave $202 million outstanding on first lien notes due December 2028.

SPCE YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$-60,000,000$-40,000,000$-20,000,000$0$461,007$227,000Revenue$-52,123,331$-65,592,000Operating Income$-52,443,274$-64,715,000Net Income
$-60,000,000$-40,000,000$-20,000,000$0RevenueOperating IncomeNet Income

SPCE Revenue by Segment

Spaceline Operations

Figures from SEC filings and company reports. Not investment advice.