Virgin Galactic (SPCE) Stock: Company Reports Q3 Loss While Advancing Commercial Launch Plans

TLDR

• Virgin Galactic reported a Q3 2025 net loss of $64 million, down from $75 million in the prior year, with operating expenses dropping 19% to $67 million.
• The company expects 90% of structural parts for its first new SpaceShip by the end of 2025, with flight testing beginning in Q3 2026 and first commercial spaceflight in Q4 2026.
• Virgin Galactic maintains a strong cash position of $424 million and raised $23 million through its equity offering program during the quarter.
• The company plans to ramp up to 125 spaceflights per year with its first two SpaceShips, generating an estimated $450 million in annual revenue at full capacity.
• Sales for future space missions on the new SpaceShips are set to open in Q1 2026, with ticket prices at $600,000 per seat.

Virgin Galactic released its third-quarter 2025 financial results, showing continued progress toward commercial operations despite ongoing losses. The space tourism company posted a net loss of $64 million for the quarter.

This represents an improvement from the $75 million loss recorded in the same period last year. Operating expenses decreased 19% to $67 million, down from $82 million in Q3 2024.

Revenue for the quarter came in at just $400,000. The modest figure stems from future astronaut access fees.

Virgin Galactic Holdings, Inc., SPCE

The company ended the quarter with $424 million in cash, cash equivalents, and marketable securities. Virgin Galactic raised $23 million during the quarter through its at-the-market equity offering program.

Production Progress on New SpaceShip

CEO Michael Colglazier provided updates on the company’s SpaceShip manufacturing timeline. By mid-December, Virgin Galactic expects to have roughly 90% of the carbon and metallic parts for its first ship completed.

The company resolved supply chain issues with the forward fuselage. The lower skin component arrived within the expected timeframe extension.

Colglazier said the first fuselage is now forecast to wrap up slightly ahead of schedule compared to last quarter’s projections. Flight testing remains on track to begin in Q3 2026.

The first commercial spaceflight is still planned for Q4 2026. Colglazier noted these dates remain essentially unchanged from previous forecasts.

Virgin Galactic plans to open its first tranche of sales opportunities in Q1 2026. Customers will be able to purchase seats on the new SpaceShips at that time.

Operational Capacity Plans

The company outlined plans to ramp up to 125 space missions per year using its first two SpaceShips. At the current ticket price of $600,000 per seat, this would generate approximately $450 million in annual revenue.

Management projects this flight rate would yield around $100 million in adjusted EBITDA at steady state. The company has upgraded its Eve launch vehicle to support this increased capacity.

The Eve aircraft is now capable of flying SpaceShips on successive days. Virgin Galactic plans to ramp to an average availability of three to four flights per week.

Most current customers are expected to fly in 2027. This timeline aligns with the enhanced flight rate capabilities.

The company hired a Chief Growth Officer as part of its pivot toward commercial readiness. Virgin Galactic is preparing various operational aspects as the launch date approaches.

For Q4 2025, Virgin Galactic expects revenue of approximately $300,000 from astronaut access fees. Free cash flow for the quarter is projected between negative $90 million and $100 million.

Spending is expected to continue declining through Q3 2026. Expenses will then rise with the start of commercial service in Q4 2026.

Capital expenditures in Q3 were $51 million, up from $39 million in the prior year period. Property, plant and equipment reached $350 million at quarter-end, a 67% increase from the end of 2024.

Adjusted EBITDA improved to negative $53 million from negative $59 million in the prior year period. Free cash flow was negative $108 million, an 8% improvement year-over-year.

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