Virgin Galactic (SPCE) Stock: Q3 Loss Improves to $64 Million as Launch Date Approaches

TLDR

• Virgin Galactic posted a Q3 2025 net loss of $64 million, improving from the $75 million loss a year earlier as operating costs fell 19%.
• The space tourism firm holds $424 million in cash and expects to complete 90% of its first SpaceShip’s structural components by year-end.
• Flight testing starts Q3 2026 with commercial operations launching Q4 2026, targeting 125 annual missions at $600,000 per seat.
• The company projects $450 million in yearly revenue at full capacity with approximately $100 million in adjusted EBITDA.
• Virgin Galactic plans to begin selling tickets for new SpaceShip flights in Q1 2026, with most customers flying in 2027.

Virgin Galactic delivered its third-quarter 2025 financial results, showing losses continue to shrink as the company moves closer to commercial spaceflight operations. The aerospace firm reported a net loss of $64 million for the period.

The loss marks an improvement from the $75 million deficit posted in Q3 2024. Total operating expenses dropped 19% to $67 million, down from $82 million in the year-ago quarter.

The company generated minimal revenue of $400,000 during the quarter. These funds came entirely from future astronaut access fees.

Virgin Galactic Holdings, Inc., SPCE

Virgin Galactic closed the quarter with $424 million in cash, cash equivalents, and marketable securities. The company pulled in $23 million through its equity offering program during the three-month period.

SpaceShip Manufacturing Timeline Advances

CEO Michael Colglazier updated investors on production progress for the company’s new spacecraft fleet. Virgin Galactic expects to have approximately 90% of carbon and metallic parts for its first SpaceShip completed by mid-December.

The company worked through supply chain hurdles related to the forward fuselage. The lower skin piece arrived within the extended timeframe the company had anticipated.

The first fuselage now appears set to finish slightly ahead of the previous quarter’s forecast. Flight testing remains scheduled to kick off in Q3 2026.

Commercial operations are still planned for Q4 2026. These target dates remain largely consistent with earlier projections.

Virgin Galactic intends to launch its first wave of ticket sales in Q1 2026. Seats on the new SpaceShips will be available for purchase at that time.

Revenue Targets and Flight Capacity

The company outlined ambitious plans to scale up to 125 space missions annually using two SpaceShips. With tickets priced at $600,000 per seat, this capacity would generate roughly $450 million in yearly revenue.

Management estimates this flight schedule would produce about $100 million in adjusted EBITDA once operations reach steady state. Virgin Galactic upgraded its Eve launch vehicle to handle the increased workload.

The Eve aircraft can now fly SpaceShips on back-to-back days. The company aims to achieve an average of three to four flights weekly.

The bulk of existing customers should fly in 2027. This schedule matches up with the ramped-up flight capabilities.

Financial Outlook and Spending

Virgin Galactic forecasts Q4 2025 revenue of around $300,000 from astronaut access fees. The company expects free cash flow between negative $90 million and $100 million for the quarter.

Spending should continue dropping through Q3 2026. Costs will then climb when commercial service begins in Q4 2026.

Capital expenditures hit $51 million in Q3, up from $39 million in the prior year quarter. Property, plant and equipment totaled $350 million at quarter-end, jumping 67% from the end of 2024.

Adjusted EBITDA came in at negative $53 million versus negative $59 million a year earlier. Free cash flow was negative $108 million, representing an 8% improvement year-over-year.

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