Virgin Galactic(SPCE) - 2025 Q1 - Quarterly Results

First Quarter 2025 Financial Highlights The company reported Q1 2025 revenue of $0.5 million, a decrease from $2.0 million in Q1 2024, due to a pause in commercial flights to focus on Delta Class spaceship production, with net loss improving to $84 million from $102 million year-over-year, driven by lower operating expenses, and a strong cash position of $567 million Q1 2025 Key Financial Metrics vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | Change Driver | | :--- | :--- | :--- | :--- | | Revenue | $0.5 million | $2.0 million | Pause in commercial spaceflights for Delta Class production. | | GAAP Total Operating Expenses | $89 million | $113 million | Lower operating expenses. | | Net Loss | $84 million | $102 million | Primarily driven by lower operating expenses. | | Adjusted EBITDA | $(72) million | $(87) million | Primarily driven by lower operating expenses. | | Free Cash Flow | $(122) million | $(126) million | - | | Net Cash Used in Operating Activities | $76 million | $113 million | - | - Cash position remains strong, with cash, cash equivalents, and marketable securities totaling $567 million as of March 31, 2025[5] - The company generated $31 million in gross proceeds by issuing 6.9 million shares of common stock through its at-the-market (ATM) offering program[5] Business Updates and Future Outlook Virgin Galactic is progressing with the build of its Delta Class spaceships, targeting the first research mission in summer 2026 and private astronaut flights in fall 2026, with future astronaut ticket sales expected to open in Q1 2026, and exploration of a second spaceport in Italy, while Q2 2025 free cash flow is projected between $(105) million and $(115) million - The company is advancing the build of its new Delta Class SpaceShips, with progress across rocket systems, avionics, flight controls, and structures[2][4] - Key operational milestones are planned for 2026: Future Astronaut Sales are expected to open in Q1 2026; The first commercial spaceflight with a new SpaceShip, carrying research payloads, is planned for summer 2026; Private astronaut spaceflights are planned for fall 2026[4][5] - A feasibility study is midway to potentially develop a second spaceport in Italy[5] - Financial guidance for the second quarter of 2025 projects free cash flow to be in the range of $(105) million to $(115) million[6] Detailed Financial Statements This section provides the unaudited condensed consolidated financial statements for the first quarter ended March 31, 2025, including the Statement of Operations, Balance Sheet, and Statement of Cash Flows, with comparative data for the same period in 2024 Condensed Consolidated Statements of Operations For Q1 2025, revenue was $0.5 million, down from $2.0 million in Q1 2024, total operating expenses decreased to $88.9 million from $113.1 million, leading to an improved operating loss of $88.4 million, and the net loss for the quarter was $84.5 million, or $(2.38) per share, compared to a net loss of $102.0 million, or $(5.10) per share, in the prior-year period Condensed Consolidated Statements of Operations (In thousands, except per share amounts) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | Revenue | $461 | $1,985 | | Total operating expenses | $88,909 | $113,143 | | Operating loss | $(88,448) | $(111,158) | | Interest income | $7,215 | $12,308 | | Interest expense | $(3,240) | $(3,227) | | Net loss | $(84,487) | $(102,012) | | Net loss per share (Basic and diluted) | $(2.38) | $(5.10) | | Weighted-average shares outstanding | 35,440 | 20,019 | Condensed Consolidated Balance Sheets As of March 31, 2025, the company held $567 million in cash, cash equivalents, and marketable securities, with total assets of $903.9 million and total liabilities of $631.8 million, compared to total assets of $961.2 million and total liabilities of $638.9 million at the end of 2024 Condensed Consolidated Balance Sheets (In thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $140,763 | $178,605 | | Marketable securities (short & long-term) | $394,359 | $445,901 | | Total current assets | $547,567 | $627,936 | | Total assets | $903,933 | $961,225 | | Liabilities and Stockholders' Equity | | | | Customer deposits | $82,197 | $84,493 | | Total current liabilities | $143,824 | $150,010 | | Convertible senior notes, net | $420,689 | $420,120 | | Total liabilities | $631,762 | $638,945 | | Total stockholders' equity | $272,171 | $322,280 | Condensed Consolidated Statements of Cash Flows In Q1 2025, net cash used in operating activities was $75.9 million, a significant improvement from $113.2 million in Q1 2024, with cash paid for capital expenditures increasing to $46.0 million, $29.7 million generated from financing activities primarily through stock issuance, and free cash flow for the quarter at $(122.0) million Condensed Consolidated Statements of Cash Flows (In thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | Net cash used in operating activities | $(75,918) | $(113,229) | | Net cash provided by investing activities | $7,475 | $83,097 | | Capital expenditures | $(46,047) | $(13,072) | | Net cash provided by financing activities | $29,712 | $6,891 | | Proceeds from issuance of common stock | $30,730 | $7,272 | | Net decrease in cash, cash equivalents and restricted cash | $(38,731) | $(23,241) | Non-GAAP Financial Measures and Reconciliations The company utilizes non-GAAP measures such as non-GAAP total operating expenses, Adjusted EBITDA, and free cash flow to provide investors with supplemental information on its performance, with this section defining these measures and reconciling them to the most directly comparable GAAP figures, showing Q1 2025 Adjusted EBITDA at $(72.2) million and free cash flow at $(122.0) million - The company uses non-GAAP financial measures, including non-GAAP total operating expenses, Adjusted EBITDA, and free cash flow, to supplement its GAAP results and help investors evaluate operating performance[17][18] Reconciliation of GAAP to Non-GAAP Total Operating Expenses (In thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | Total operating expenses (GAAP) | $88,909 | $113,143 | | Stock-based compensation | $4,769 | $8,244 | | Depreciation and amortization | $4,223 | $3,699 | | Non-GAAP total operating expenses | $79,917 | $101,200 | Reconciliation of Net Loss to Adjusted EBITDA (In thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | Net loss (GAAP) | $(84,487) | $(102,012) | | Interest expense | $3,240 | $3,227 | | Income tax expense | $48 | $80 | | Depreciation and amortization | $4,223 | $3,699 | | Stock-based compensation | $4,769 | $8,244 | | Adjusted EBITDA | $(72,207) | $(86,762) | Reconciliation of Net Cash Used in Operating Activities to Free Cash Flow (In thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | Net cash used in operating activities (GAAP) | $(75,918) | $(113,229) | | Capital expenditures | $(46,047) | $(13,072) | | Free cash flow | $(121,965) | $(126,301) |