Virgin Galactic(SPCE) - 2025 Q2 - Quarterly Results

Virgin Galactic Q2 2025 Earnings Release Management Commentary and Business Update 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] - Key operational updates and timelines include: - Commercial Service: Planned for 2026, with private astronaut and research flights on track for Fall 2026[5] - SpaceShip Production: Wing and feather assembly completion expected in Q4 2025; fuselage completion expected late Q4 2025 or early Q1 2026[6] - Strategic Collaborations: Feasibility studies are underway with Lawrence Livermore National Laboratory and for a potential second spaceport in Italy[12] Q2 2025 Financial Highlights 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][6] - Generated $56 million in gross proceeds through its at-the-market (ATM) offering program by issuing 15.7 million shares of common stock[6] Financial Guidance 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] Consolidated Financial Statements 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 | (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 | (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 | (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 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][21] 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) |