PART I [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Virgin Galactic's H1 2025 revenue was **$0.87 million** with a **$151.8 million** net loss, and total assets stood at **$898.8 million** [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$898.8 million** by June 30, 2025, driven by reduced cash and marketable securities, impacting equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $163,547 | $178,605 | | Marketable securities (short & long-term) | $314,025 | $445,901 | | Total current assets | $532,795 | $627,936 | | Total assets | $898,817 | $961,225 | | **Liabilities & Equity** | | | | Customer deposits | $80,871 | $84,493 | | Convertible senior notes, net | $421,263 | $420,120 | | Total liabilities | $635,444 | $638,945 | | Total stockholders' equity | $263,373 | $322,280 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q2 2025 revenue declined to **$0.4 million**, but net loss narrowed to **$67.3 million** due to significantly lower operating expenses Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $406 | $4,220 | $867 | $6,205 | | Operating Loss | $(69,942) | $(101,790) | $(158,390) | $(212,948) | | Net Loss | $(67,280) | $(93,775) | $(151,767) | $(195,787) | | Net Loss Per Share (Basic & Diluted) | $(1.47) | $(4.36) | $(3.74) | $(9.43) | - Total operating expenses decreased significantly to **$70.3 million** in Q2 2025 from **$106.0 million** in Q2 2024, driven by reductions in Spaceline operations and Research and development costs[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved in H1 2025, with financing providing **$83.6 million**, decreasing total cash by **$17.2 million** Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(131,364) | $(192,361) | | Net cash provided by investing activities | $30,634 | $83,676 | | Net cash provided by financing activities | $83,572 | $69,921 | | **Net decrease in cash, cash equivalents and restricted cash** | **$(17,158)** | **$(38,764)** | - Capital expenditures increased significantly to **$104.4 million** in the first six months of 2025, compared to **$47.5 million** in the prior year period, reflecting investment in future fleet development[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's aerospace business, accounting policies, and key financial events including a legal settlement and ATM stock offerings - The company is focused on developing, manufacturing, and operating spaceships for private individuals, researchers, and government agencies[27](index=27&type=chunk) - In July 2025, the company reached a settlement in the 'Lavin v. Virgin Galactic' class action lawsuit for **$8.5 million**, with an expected net cost of **$2.9 million** after insurance coverage, accrued in Q2 2025[78](index=78&type=chunk) - During the first six months of 2025, the company sold **22.7 million** shares of common stock under its 2024 ATM Program, generating **$86.3 million** in gross proceeds[50](index=50&type=chunk) - The company has **$425 million** in principal of 2.50% convertible senior notes due in 2027, with a net carrying amount of **$421.3 million** as of June 30, 2025[43](index=43&type=chunk)[44](index=44&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Delta Class spaceship development on track for 2026, reduced operating expenses, and sufficient capital to fund operations for the next twelve months - Development of the new Delta Class spaceships is progressing on schedule, with commercial service planned to begin in the fall of 2026[95](index=95&type=chunk) - As of June 30, 2025, the company holds reservations for approximately **675** future astronauts, which translates to about **$190 million** in expected future revenue[98](index=98&type=chunk) - The company believes its current capital, including cash, cash equivalents, and marketable securities totaling **$507.7 million**, is adequate to sustain operations for at least the next twelve months[116](index=116&type=chunk)[125](index=125&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q2 2025 revenue decreased to **$0.4 million**, while operating expenses significantly reduced, including Spaceline operations down **48%** and R&D down **52%** Operating Expense Comparison (Q2 2025 vs Q2 2024, in millions) | Expense Category | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Spaceline operations | $14.2 | $27.3 | $(13.1) | (48)% | | Research and development | $20.1 | $41.5 | $(21.4) | (52)% | | Selling, general and administrative | $31.9 | $33.9 | $(2.0) | (6)% | - The decrease in R&D expenses was primarily driven by a **$19.2 million** reduction in sub-contractor and contract labor costs related to the development of next-generation spaceflight vehicles[107](index=107&type=chunk) - The decrease in Spaceline operations expense was mainly due to an **$8.7 million** decrease in compensation and benefits and a **$4.1 million** decrease in materials and other operational costs[104](index=104&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, total liquidity was **$507.7 million**, with **$83.6 million** from ATM offerings, supporting short-term needs Key Liquidity Figures (as of June 30, 2025, in millions) | Item | Amount | | :--- | :--- | | Cash, cash equivalents and restricted cash | $193.7 | | Total marketable securities | $314.0 | | **Total Liquidity** | **$507.7** | - The company's 2024 ATM Program generated **$86.3 million** in gross proceeds during the first six months of 2025 from the sale of **22.7 million** shares[130](index=130&type=chunk) - Net cash used in operating activities for the first six months of 2025 was **$131.4 million**, a decrease from **$192.4 million** in the same period of 2024[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section is not applicable as Virgin Galactic Holdings, Inc. qualifies as a smaller reporting company - Disclosure is not required for smaller reporting companies[137](index=137&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level[139](index=139&type=chunk) - No changes occurred in the internal control over financial reporting during Q2 2025 that have materially affected, or are reasonably likely to materially affect, these controls[140](index=140&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings, none of which are considered material to its business or financial condition - The company states that no pending legal proceedings are expected to have a material adverse effect on its operating results, financial condition, or cash flows. For more details, it refers to Note 12 of the financial statements[141](index=141&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the company's 2024 Annual Report and Q1 2025 Quarterly Report - The company reports no material changes to the risk factors disclosed in its 2024 Annual Report on Form 10-K and Q1 2025 Form 10-Q[142](index=142&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[143](index=143&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated Rule 10b5-1 trading plans during Q2 2025 - No officers or directors adopted or terminated any Rule 10b5-1 trading plans during the second quarter of 2025[146](index=146&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents, incentive plans, and officer certifications - The report includes exhibits such as the Third Amended and Restated 2019 Incentive Award Plan, the 2025 Employee Stock Purchase Plan, and certifications by the Principal Executive Officer and Principal Financial Officer[147](index=147&type=chunk)[148](index=148&type=chunk)

[Virgin Galactic Q2 2025 Earnings Release](index=1&type=section&id=Virgin%20Galactic%20Q2%202025%20Earnings%20Release) [Management Commentary and Business Update](index=1&type=section&id=Management%20Commentary%20and%20Business%20Update) Management highlights progress on the Delta Class fleet, a strong balance sheet, and disciplined spending, reaffirming the 2026 commercial service timeline - CEO Michael Colglazier emphasized continued progress on the SpaceShips, a strong balance sheet, and disciplined cash spending, reaffirming the 2026 commercial service timeline[2](index=2&type=chunk) - Key operational updates and timelines include: - **Commercial Service:** Planned for 2026, with private astronaut and research flights on track for Fall 2026[5](index=5&type=chunk) - **SpaceShip Production:** Wing and feather assembly completion expected in Q4 2025; fuselage completion expected late Q4 2025 or early Q1 2026[6](index=6&type=chunk) - **Strategic Collaborations:** Feasibility studies are underway with Lawrence Livermore National Laboratory and for a potential second spaceport in Italy[12](index=12&type=chunk) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) The company reported lower Q2 revenue due to a flight pause but improved its net loss through reduced operating expenses, maintaining a strong cash position | Financial Metric | Q2 2025 | Q2 2024 | Change Driver | | :--- | :--- | :--- | :--- | | Revenue | $0.4 million | $4.2 million | Pause in commercial spaceflights | | GAAP Operating Expenses | $70 million | $106 million | Disciplined spending approach | | Non-GAAP Operating Expenses | $58 million | $95 million | Disciplined spending approach | | Net Loss | $(67) million | $(94) million | Lower operating expenses | | Adjusted EBITDA | $(52) million | $(79) million | Lower operating expenses | | Free Cash Flow | $(114) million | $(114) million | N/A | - The company maintains a strong liquidity position with cash, cash equivalents, and marketable securities totaling **$508 million** as of June 30, 2025[2](index=2&type=chunk)[6](index=6&type=chunk) - Generated **$56 million** in gross proceeds through its at-the-market (ATM) offering program by issuing **15.7 million shares** of common stock[6](index=6&type=chunk) [Financial Guidance](index=2&type=section&id=Financial%20Guidance) The company projects third-quarter 2025 free cash flow to be between negative $100 million and negative $110 million - The company projects free cash flow for the third quarter of 2025 to be between **$(100) million and $(110) million**[7](index=7&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The financial statements detail a reduced net loss, a strong cash position, and cash usage for operations and new fleet investment [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) | (In thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $406 | $4,220 | $867 | $6,205 | | Total operating expenses | $70,348 | $106,010 | $159,257 | $219,153 | | Operating loss | $(69,942) | $(101,790) | $(158,390) | $(212,948) | | Net loss | $(67,280) | $(93,775) | $(151,767) | $(195,787) | | Net loss per share (Basic & Diluted) | $(1.47) | $(4.36) | $(3.74) | $(9.43) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $163,547 | $178,605 | | Marketable securities (short & long-term) | $314,025 | $445,901 | | Total current assets | $532,795 | $627,936 | | Total assets | $898,817 | $961,225 | | Total current liabilities | $157,430 | $150,010 | | Total liabilities | $635,444 | $638,945 | | Total stockholders' equity | $263,373 | $322,280 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(131,364) | $(192,361) | | Net cash provided by investing activities | $30,634 | $83,676 | | Net cash provided by financing activities | $83,572 | $69,921 | | Net decrease in cash, cash equivalents and restricted cash | $(17,158) | $(38,764) | [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) The company provides non-GAAP metrics to supplement GAAP results, showing improved Adjusted EBITDA and operating expenses year-over-year - The company uses non-GAAP financial measures to provide investors with supplemental information for evaluating operating results, including non-GAAP total operating expenses, Adjusted EBITDA, and free cash flow[20](index=20&type=chunk)[21](index=21&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net loss | $(67,280) | $(93,775) | | Adjustments | $15,088 | $14,756 | | **Adjusted EBITDA** | **$(52,192)** | **$(79,019)** | Reconciliation of Net Cash Used in Operating Activities to Free Cash Flow (in thousands) | | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(55,446) | $(79,132) | | Capital expenditures | $(58,361) | $(34,415) | | **Free cash flow** | **$(113,807)** | **$(113,547)** |

Group 1 - Virgin Galactic's stock price increased by 18.7%, reaching $3.86 per share [1]

Core Viewpoint - The article highlights significant stock movements in the Hong Kong and US markets, indicating potential investment opportunities and sector trends, particularly in technology, healthcare, and entertainment sectors [1][2][3]. Hong Kong Market Highlights - Mixue (02097) surged over 7%, while Bluetec (00325) rose over 16%, and Guming (01364) increased over 3% [1]. - Lion Group (02562) gained over 4% as it plans to acquire a domestic SaaS company with substantial market share [1]. - Apple-related stocks saw a broad increase, with Sunny Optical (02382) up nearly 4%, and other companies like Q Tech (01478) and AAC Technologies (02018) rising over 3% [1]. - Far East Pharmaceutical (00512) rose over 3% as it commenced international Phase III clinical trials for its innovative ophthalmic drug CBT-001 [1]. - Alibaba Pictures (01060) jumped over 16%, with a cumulative increase of nearly 140% over the past two weeks, focusing on Damao performances and IP derivatives [1]. - Global Data (09698) increased over 5% after signing a strategic agreement with China Life Investment for comprehensive cooperation in asset securitization [1]. - Three Life Pharmaceuticals (01530) rose over 5% following a significant licensing agreement with Pfizer, showcasing promising data for SSGJ-707 [1]. - JD Group (09618) gained nearly 5% after signing a strategic cooperation agreement with China Resources Group [1]. - Tencent Music (01698) increased over 6% as it expands its international footprint by investing in South Korea's SM Entertainment [1]. - Cinda Biologics (01801) rose over 6% due to promising early data for IBI363 in lung cancer, with Goldman Sachs previously indicating the stock was undervalued [1]. - SMIC (00981) increased nearly 4% as it plans to sell its stake in SMIC Ningbo to focus on its core business [1]. - Rare earth stocks surged, with China Rare Earth (00769) up over 48% [1]. - Fubo Group (03738) rose over 3% after completing a 138 million share placement to enhance its AI business [1]. - Friendship Time (06820) surged over 22%, with a year-to-date increase exceeding 90%, driven by positive market feedback on its new game [1]. - Military stocks collectively rose, with China Shipbuilding Defense (00317) increasing nearly 4% [1]. US Market Highlights - Huaxing Capital Holdings (01911) surged over 14% following the successful listing of stablecoin "first stock" Circle, in which its fund participated in 2018 [2]. - In the US market, Circle's stock skyrocketed nearly 30% on its second day of trading after an initial 168% surge [2]. - Lululemon (LULU.US) fell nearly 20% after lowering its full-year profit guidance [2]. - DocuSign (DOCU.US) dropped nearly 19% after revising its full-year billing revenue forecast downward [2]. - Virgin Galactic (SPCE.US) rose over 2%, with a peak increase of over 14%, as it announced a potential recovery in commercial space flight services [2]. - Nvidia's holdings saw a broad increase, with Applied Digital (APLD.US) up over 8% and Recursion Pharmaceuticals (RXRX.US) rising over 20% [2]. - Robinhood (HOOD.US) fell 6.25% in after-hours trading, while AI stock Applovin (APP.US) dropped 5.53% [3].

Core Viewpoint - Virgin Galactic has seen a significant decline in its stock value, down 98% over the last five years, highlighting the risks associated with investing in speculative, unprofitable companies [1] - Recent better-than-expected earnings and analyst upgrades have led to a notable 80% increase in shares on May 16, raising questions about the sustainability of this rally [2] Company Overview - Virgin Galactic is pioneering the space tourism industry, offering suborbital flights to wealthy individuals at approximately $600,000 per seat [3][4] - The company estimates a total addressable market of 300,000 potential customers for space tourism, with an expected annual growth rate of 8% [5] Financial Performance - In the first quarter, Virgin Galactic reported a 77% year-over-year revenue decline to $461,000, although a reduction in expenses helped narrow the operating loss from $113.1 million to $88.9 million [6][7] - The company has $140.8 million in cash and equivalents, raising concerns about its ability to sustain losses without seeking external capital, which could lead to equity dilution [8] Business Stage and Future Prospects - Virgin Galactic is currently in a pre-commercial stage, focusing on aircraft design and obtaining regulatory approvals to start commercial flights in 2026 [10] - The management's history of overpromising and underdelivering raises skepticism about the timeline for commercial operations, which were initially expected to begin in 2011 [12] Investment Potential - There is potential for Virgin Galactic to become a millionaire-maker stock if it successfully establishes commercial operations, but this outcome is uncertain [11] - The ongoing capital burn and potential for shareholder dilution present significant risks that may outweigh the potential rewards at this time [13]

Investment Rating - The report maintains a Neutral rating on Virgin Galactic Holdings (SPCE) [1][8] Core Insights - Virgin Galactic expects to open Future Astronaut sales in 1Q26 and plans to commence commercial spaceflight in mid-2026, while continuing to develop its Delta Class spaceships [1] - The company is currently experiencing a high rate of free cash burn relative to its cash balance, raising concerns about its ability to scale without additional capital [1] - Demand for SPCE's offerings remains uncertain, complicating revenue and profitability projections [1] Financial Performance - SPCE reported an adjusted EBITDA of $(72) million for 1Q25, which was better than the FactSet consensus of $(77) million and the estimate of $(87) million [2][17] - The company generated $0.5 million in revenue during the quarter, with free cash flow usage of $(122) million, compared to $(117) million in the previous quarter and $(126) million a year ago [2][20] - SPCE expects free cash flow usage of $(115)-(105) million for 2Q25 [18] Revenue and Earnings Estimates - Revenue estimates for SPCE have been revised for 2025-2027, with projected revenues of $9.5 million in 2025 and $160.5 million in 2026 [3][19] - EPS estimates have been adjusted to $(12.25) for 2025, $(6.67) for 2026, and $(2.21) for 2027, reflecting changes in revenue and margin inputs [19] Price Target Methodology - The 12-month price target for SPCE has been revised to $32 from $36, based on a blend of three scenarios: 2025 EV/sales multiple, sub-orbital steady state, and an "everything works" scenario [19][22] - The target price reflects a significant upside potential of 566.7% from the current price of $4.80 [1]

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or ...

Group 1 - Virgin Galactic (SPCE.N) continues its upward trend, initially surging nearly 100% before narrowing to a 70% increase [1] - The company's Q1 earnings exceeded expectations, contributing to the stock price increase [1]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive has bureaus and studios in key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Group 2 - The company is committed to using technology to enhance workflows and improve content production [4] - Proactive employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Insights - Virgin Galactic reported a quarterly loss of $2.38 per share, which was worse than the Zacks Consensus Estimate of a loss of $2.23, but an improvement from a loss of $5 per share a year ago [1] - The company posted revenues of $0.46 million for the quarter, exceeding the Zacks Consensus Estimate by 15.25%, but down from $1.99 million year-over-year [2] - Virgin Galactic shares have declined approximately 39.6% year-to-date, contrasting with a 0.2% gain in the S&P 500 [3] Financial Performance - The earnings surprise for the latest quarter was -6.73%, while the previous quarter saw a positive surprise of 29.72% with an actual loss of $2.53 against an expected loss of $3.60 [1][2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped revenue estimates twice [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$2.10 on revenues of $0.4 million, and for the current fiscal year, it is -$8.72 on revenues of $2.3 million [7] - The estimate revisions trend for Virgin Galactic is currently favorable, leading to a Zacks Rank 2 (Buy), indicating expected outperformance in the near future [6] Industry Context - The Aerospace - Defense industry, to which Virgin Galactic belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]