Virgin Galactic (SPCE -0.80%), a company focused on commercial space tourism and spaceflight experiences, announced its results for the second quarter of fiscal 2025 on August 6, 2025. The key news was a 90% plunge in GAAP revenue to $0.4 million in Q2 2025 compared to Q2 2024, below the analyst consensus of $0.45 million (GAAP), as the company remains in a pre-revenue period with commercial operations paused. On the positive side, its net loss shrank to $1.47 per share (GAAP), substantially better than the estimated GAAP net loss per share of $2.34 and the prior year’s GAAP basic and diluted net loss per share of $4.36 in Q2 2024, due to sharply reduced operating expenses. The quarter showed strong progress on cost control and the ongoing ramp-up of the Delta Class SpaceShip program, yet cash burn remained high and revenue minimal.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(1.47) | $(2.34) | $(4.36) | 66.3 % |
| Revenue (GAAP) | $0.4 million | $0.45 million | $4.2 million | (−90.5 %) |
| Non-GAAP Total Operating Expenses | $58.5 million | $94.5 million | (38.1 %) | |
| Adjusted EBITDA | $(52.2 million) | $(79.0 million) | -33.9 % | |
| Free Cash Flow | $(113.8 million) | $(113.5 million) | -0.3 % |
Source: Analyst estimates for the quarter provided by FactSet.
About Virgin Galactic and Recent Strategic Focus
Virgin Galactic runs commercial spaceflights for private individuals and researchers. Its main product, currently in a paused phase, has been human spaceflight aboard the VSS Unity spaceplane, part of its reusable suborbital fleet. The company aims to enable space tourism, offering a multi-day experience including astronaut training and community access. Customers are often high-net-worth individuals seeking an exclusive journey to the edge of space.
The company’s recent focus is on building and preparing its Delta Class SpaceShips, a new generation of vehicles designed for increased flight frequency and carrying capacity. Achieving production milestones for these vehicles is critical for future profitability. Virgin Galactic’s success will depend on scaling operations, controlling costs, upholding safety standards, and delivering innovative customer experiences. Its brand, associated with luxury and adventure, supports this mission but also sets high expectations for operational excellence and safety.
Quarter in Review: Financials, Operations, and Milestones
Virgin Galactic reported sharply lower GAAP revenue in Q2 2025, dropping from $4.2 million a year ago to just $0.4 million. This reflects the company’s pause in commercial operations while it reallocates resources to manufacturing the Delta Class SpaceShips. Commercial flights are planned to resume in 2026, so nearly all reported revenue now comes from astronaut access and event fees, not actual flights. GAAP revenue came in 11.1% below already modest analyst estimates.
Operating expenses, both GAAP and Non-GAAP, fell considerably in Q2 2025. However, Spending on selling, general, and administrative tasks remained about flat compared to Q2 2024. These cost cuts drove the improvement in net loss, which narrowed to $67.3 million, equating to a $1.47 per share loss (GAAP).
Adjusted EBITDA, a measure of profitability that excludes certain non-cash and special expenses, improved from $(79.0) million in Q2 2024 to $(52.2) million in Q2 2025. Free cash flow—the cash available after operating and capital expenses—remained negative at $(113.8) million, roughly unchanged from the prior year. This deep deficit underscores continued heavy investment, especially as capital expenditures (capex) rose 69.7% year-over-year to $58 million in Q2 2025, supporting the build-out of manufacturing and infrastructure.
Cash reserves remained robust at $508 million in cash, equivalents, and marketable securities as of June 30, 2025. This liquidity was boosted by $56 million in gross proceeds from issuing 15.7 million new shares during the quarter. However, this share issuance also means existing shareholders now own a smaller portion of the company, a process known as dilution. The weighted average share count more than doubled compared to Q2 2024, indicating significant dilution from new stock sales. Customer deposits, reflecting cash collected for future flights, edged down slightly, with no new updates on total reservations or backlog released this quarter.
Business Progress and Product/Service Developments
Virgin Galactic concentrated efforts on manufacturing and key milestones for the Delta Class SpaceShips, its next-generation suborbital spacecraft designed for frequent, reusable flights. The company remains on track to complete major assembly steps: wing and feather structures should be finished in the fourth quarter of 2025, while the fuselage is targeted for completion late in that same quarter or early in 2026. These milestones are prerequisites for commencing test flights and returning to paid commercial service.
The company continues to pursue manufacturing efficiency and cost control. Statements emphasized shifting dollars away from daily operating costs and research into capitalized assets that will support long-term scaling. While free cash flow (non-GAAP) remains highly negative, the reduction in operating costs and the targeted completion of “peak investment” suggest future cash burn may decline. Capex now constitutes a larger share of spending, especially as new tooling and automation are installed to streamline assembly.
Tech development also advanced. The Delta Class SpaceShips use a reusable hybrid rocket engine, which is expected to improve turnaround time and reduce flight costs. Collaboration with Lawrence Livermore National Laboratory to explore carrier aircraft uses also points to possible new business areas beyond tourism, including research payloads and government contracts. Research and development expenses (GAAP) decreased during the quarter, but the company did not report any major technical setbacks or delays in the SpaceShip assembly schedule.
On customer experience, Virgin Galactic’s business is strongly tied to its brand, which is marketed as exclusive and transformative. The company offers personalized training and event experiences ahead of flight. Management highlighted plans to reopen reservations in the first quarter of 2026, just ahead of planned service restart. There was no update on price points, but last known ticket sales were priced at $600,000 per seat. The company did not disclose new customer or backlog figures this quarter.
Looking Ahead: Guidance and Watch Points
Management reaffirmed the plan to resume commercial spaceflight operations in fall 2026, including research and private astronaut flights. Free cash flow (non-GAAP) in Q3 2025 is expected to remain negative, in the range of $(100) million to $(110) million. The company stated that its highest spending has likely passed and that quarterly cash burn should decline for the rest of 2025.
No additional guidance was provided for full-year revenue, profit, or operational targets. With commercial service more than a year away, investors should monitor the company's ability to hit key production dates, manage costs, and maintain adequate cash reserves. Particular scrutiny is warranted for capital outlays, timelines for test flights, and market response when new reservations open, as these factors will determine how quickly Virgin Galactic can scale to a commercially viable business model.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
