Virgin Galactic (SPCE) Q1 2026 earnings summary

Executive summary

• Delivered first new spaceship to test and launch hangar; ground testing underway and on track for Q3 2026 flight testing and Q4 2026 commercial spaceflight.

• Spending and operating expenses continue to decline; debt retirements are on or ahead of schedule; cash balances maintained as company prepares for commercial operations.

• Accelerated hiring of pilots and preparations for commercial spaceflight operations; 650 founding astronauts have flight windows for 2027–early 2028, representing $186 million in expected future revenue.

• Strong early response to $750,000 ticket tranche; construction started on rocket motor assembly line, operational in Q4 2026.

• Settlement agreements reached in major derivative and class action lawsuits, with insurance covering most payments and adoption of corporate reforms pending court approval.

Financial highlights

• Q1 2026 revenue was $227,000, down from $461,000 in Q1 2025, mainly from future astronaut access fees.

• Net loss improved to $64.7 million from $84.5 million year-over-year, driven by lower operating expenses.

• Operating expenses fell 26% year-over-year to $65.8 million; adjusted EBITDA improved 24% to negative $55 million.

• Free cash flow was negative $93 million, a 23% improvement year-over-year.

• Ended Q1 with $251 million in cash, cash equivalents, and marketable securities; $52 million additional raised in April via ATM equity program.

Outlook and guidance

• Q2 2026 revenue expected at $100,000; free cash flow projected between negative $87 million and $92 million.

• Free cash flow to improve modestly in Q3; Q4 to see start of commercial spaceflight revenue.

• Operating expenses expected to be $70–$80 million quarterly by Q4 2026.

• Four flights per month targeted for January 2027, ramping to eight per month by Q2 2027.

• Management has concluded there is substantial doubt about the ability to continue as a going concern for the next twelve months without successful execution of funding plans.