Shocking News (But No, Not Really): Virgin Galactic Needs More Money

Earnings and Financial Performance - Virgin Galactic reported a significant loss of $72.7 million, or$2.66 per share, in Q3 despite a 49% increase in share count [6] - Revenue for the quarter was minimal at $402,000 due to no commercial flights [5] - Operating costs totaled$82.1 million, down 29% from previous periods [5] - Cash burn rate accelerated to $118 million in the quarter, with$744 million in cash and equivalents remaining [7] Future Plans and Challenges - Virgin Galactic is in the "build phase" of its new Delta-class spaceplanes and shifting to design work on a new mothership [2] - Commercial flights are expected to begin in 2026, but delays could push this timeline to 2027 or later [8] - The company plans to issue and sell $300 million worth of stock to fund additional motherships and Delta-class spaceplanes [10] - This stock issuance could dilute existing shareholders by 150$115-$125 million in Q4 [7] - The stock issuance ensures solvency through 2026 but significantly dilutes shareholder value [13] - The company's long-term profitability is uncertain, even in a best-case scenario [14]