Virgin Galactic (NYSE: SPCE) details 2025 losses, cash burn and fleet timeline
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Virgin Galactic Holdings reported wider-than-reported operating progress but continued heavy losses for the fourth quarter and full year 2025 while advancing its next-generation fleet. For Q4 2025, revenue was only $0.3 million, largely from access fees, and the company posted a net loss of $63 million and free cash flow of $(95) million, both improved versus 2024 due to lower operating expenses.
For full year 2025, revenue fell to $2 million from $7 million as commercial flights were paused to focus on building new SpaceShips. The net loss narrowed to $279 million and free cash flow to $(438) million as operating costs declined. Cash, cash equivalents and marketable securities totaled $338 million as of December 31, 2025, supported by $122 million of equity raised through at-the-market programs and other offerings.
The company opened sales for limited Virgin Galactic Spaceflight Expeditions, each priced at $750,000, and targets commercial operations with its first new SpaceShip in Q4 2026, with a second entering service between late Q4 2026 and early Q1 2027. Management expects Q1 2026 free cash flow between $(90) million and $(95) million, with sequential improvement over the remainder of 2026.
Positive
- None.
Negative
- None.
Insights
Virgin Galactic cuts cash burn and advances fleet, but losses and dilution remain substantial.
Virgin Galactic is still pre-scale, with 2025 revenue of $2 million versus $7 million in 2024 after pausing flights to prioritize new SpaceShip production. Despite minimal revenue, GAAP operating expenses fell sharply to $287 million, improving net loss and Adjusted EBITDA.
Free cash flow improved but remains deeply negative at $(438) million for 2025 and guidance of $(90) to $(95) million for Q1 2026. Cash, cash equivalents and marketable securities of $338 million at year-end were bolstered by $122 million raised via at-the-market stock offerings and additional equity-linked financing, alongside a debt realignment that cut contractual obligations by $142 million.
Operationally, management is targeting commercial service for the first new SpaceShip in Q4 2026 and the second by between late Q4 2026 and early Q1 2027, with tickets at $750,000. The investment case still hinges on the company meeting these timelines and ramping flight cadence before existing liquidity and ongoing cash burn require further financing.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q4 2025 revenue: $0.3 million
Full year 2025 revenue: $2 million
Full year 2025 net loss: $279 million
+5 more
8 metrics
Q4 2025 revenue
$0.3 million
Fourth quarter 2025 revenue from access fees
Full year 2025 revenue
$2 million
2025 revenue vs $7 million in 2024 after flight pause
Full year 2025 net loss
$279 million
Net loss for year ended December 31, 2025
Year-end cash and securities
$338 million
Cash, cash equivalents and marketable securities as of December 31, 2025
2025 free cash flow
$(438) million
Full year 2025 free cash flow
Debt obligations reduction
$142 million
Reduction in contractual debt obligations from December 2025 realignment
Equity raised in 2025 ATMs
$122 million
Gross proceeds from at-the-market offerings in 2025
Ticket price per expedition
$750,000
Price for Virgin Galactic Spaceflight Expeditions
Key Terms
Adjusted EBITDA, free cash flow, non-GAAP total operating expenses, at-the-market offering program, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA totaled $(49) million, compared to $(63) million in the fourth quarter of 2024"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Free cash flow totaled $(95) million, compared to $(117) million in the fourth quarter of 2024"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
non-GAAP total operating expenses financial
"Non-GAAP total operating expenses of $53 million in the fourth quarter of 2025"
at-the-market offering program financial
"Generated $12 million in gross proceeds through the issuance of 3.5 million shares of common stock as part of the Company’s at-the-market offering program"
An at-the-market offering program lets a company sell newly issued shares directly into the open market at current trading prices through a broker, rather than issuing a large block of stock all at once. It matters to investors because it provides the company a flexible way to raise cash over time, which can dilute existing shares gradually and affect earnings per share and stock price depending on how much and when shares are sold—think of it as a faucet the company can open or close to add supply to the market.
debt restructuring expense financial
"Debt restructuring expense of $2,798 thousand was included in the period"
Offering Details
Filing offering details
Offering
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________
FORM 8-K
____________________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 30, 2026
____________________________
(Exact name of registrant as specified in its charter)
____________________________
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
(949 ) 774-7640
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
____________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On March 30, 2026, Virgin Galactic Holdings, Inc. (the “Company”) issued a press release announcing certain financial and other results for the fiscal quarter and year ended December 31, 2025. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Current Report”) and is incorporated herein by reference.
The information furnished in this Current Report (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed to be incorporated by reference in any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
99.1 | Press Release, dated March 30, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| VIRGIN GALACTIC HOLDINGS, INC. | ||||||||||||||
Date: March 30, 2026 | By: | /s/ Douglas Ahrens | ||||||||||||
| Name: | Douglas Ahrens | |||||||||||||
| Title: | Chief Financial Officer and Treasurer | |||||||||||||
Exhibit 99.1
Virgin Galactic Announces Fourth Quarter and Full Year 2025 Financial Results and Provides Business Update
•Sales Open for Virgin Galactic Spaceflight Expeditions - Priced At $750K
•First of Two New SpaceShips Progressing to Ground Test Phase in April; Flight Test Phase Begins Q3 2026
•Commercial Spaceflight Operations with First New SpaceShip Continue on Track for Q4 2026
•Second New SpaceShip Expected to Enter Service Between Late Q4 2026 and Early Q1 2027
ORANGE COUNTY, CALIFORNIA. – March 30, 2026 – Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“Virgin Galactic” or the “Company”) today announced its financial results for the fourth quarter and full year ended December 31, 2025 and provided a business update.
CEO Michael Colglazier said, “We completed pivotal milestones during the first quarter of 2026, and with assembly of our first SpaceShip nearly complete and ground testing set to begin in April, we have released a limited number of Virgin Galactic Spaceflight Expeditions, each priced at $750,000. Fabrication efforts are pivoting to support testing and production of our second SpaceShip, which we expect will enter service between late Q4 2026 and early Q1 2027 in line with our planned ramp in spaceflight cadence. With production of SpaceShips well underway, we are gearing up for rocket motor assembly at our Phoenix factory, with manufacturing planned to begin in Q4 2026. We continue to strategically manage our capital to support our planned ramp in cash flow from commercial spaceline operations.”
Fourth Quarter 2025 Financial Highlights
•Cash position remains strong, with cash, cash equivalents and marketable securities of $338 million as of December 31, 2025.
•Revenue of $0.3 million, compared to $0.4 million in the fourth quarter of 2024, attributable to access fees related to future astronauts.
•GAAP total operating expenses of $61 million, compared to $82 million in the fourth quarter of 2024. Non-GAAP total operating expenses of $53 million in the fourth quarter of 2025, compared to $72 million in the fourth quarter of 2024.
•Net loss of $63 million, compared to a $76 million net loss in the fourth quarter of 2024, with the improvement primarily driven by lower operating expenses.
•Adjusted EBITDA totaled $(49) million, compared to $(63) million in the fourth quarter of 2024, with the improvement primarily driven by lower operating expenses.
•Net cash used in operating activities totaled $52 million, compared to $81 million in the fourth quarter of 2024.
•Cash paid for capital expenditures totaled $42 million, compared to $36 million in the fourth quarter of 2024.
•Free cash flow totaled $(95) million, compared to $(117) million in the fourth quarter of 2024.
•Generated $12 million in gross proceeds through the issuance of 3.5 million shares of common stock as part of the Company’s at-the-market offering program.
Full Year 2025 Financial Highlights
•Revenue of $2 million, compared to $7 million in 2024, with the decrease driven by the pause in commercial spaceflights to focus efforts on the production of the new SpaceShips.
•GAAP total operating expenses of $287 million, compared to $384 million in 2024. Non-GAAP total operating expenses of $249 million, compared to $338 million in 2024.
•Net loss of $279 million, compared to a $347 million net loss in 2024, with the improvement primarily driven by lower operating expenses.
•Adjusted EBITDA totaled $(226) million, compared to $(289) million in 2024, with the improvement primarily driven by lower operating expenses.
•Net cash used in operating activities totaled $240 million, compared to $353 million in 2024.
•Cash paid for capital expenditures totaled $198 million, compared to $122 million in 2024.
•Free cash flow totaled $(438) million, compared to $(475) million in 2024.
•Generated $122 million in gross proceeds through the issuance of 33.5 million shares of common stock as part of the Company’s at-the-market offering programs.
Business Updates
•Newly launched commercial website and astronaut portal completed in conjunction with launch of sales.
•Executed capital realignment transactions in December 2025 to better align debt maturity dates with planned ramp in cash flow from commercial spaceline operations and reduce contractual debt obligations by $142 million.
Financial Guidance
The following forward-looking statements reflect our expectations for the first quarter of 2026 as of March 30, 2026 and are subject to substantial uncertainty. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed below in “Forward-Looking Statements.”
•Free cash flow for the first quarter of 2026 is expected to be in the range of $(90) million to $(95) million.
•For the remainder of 2026, free cash flow is expected to show sequential improvement from the first quarter.
Non-GAAP Financial Measures
In addition to the Company’s results prepared in accordance with generally accepted accounting principles in the United States (GAAP), the Company is also providing certain non-GAAP financial measures. A discussion regarding the use of non-GAAP financial measures and a reconciliation of such measures to the most directly comparable GAAP information is presented later in this press release.
Conference Call Information
Virgin Galactic will host a conference call to discuss the results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) today. To access the conference call, parties should dial +1 800-715-9871 or +1 646-307-1963 and enter the conference ID number 8658652. The live audio webcast along with supplemental information will be accessible on the Company’s Investor Relations website at https://investors.virgingalactic.com/events-and-presentations/. A recording of the webcast will also be available following the conference call.
About Virgin Galactic Holdings
Virgin Galactic is an aerospace and space travel company, pioneering human-first spaceflight for private individuals, researchers, and governments with its advanced SpaceShips and launch vehicle. Scale and profitability are driven by next-generation vehicles capable of taking humans to space at an unprecedented frequency with an industry-leading cost structure. You can find more information at https://www.virgingalactic.com/.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our spaceflight systems, scaling of our future fleet, increasing our flight rate, development, production and design of our spaceships and proposed timeline for assembly, testing and commercial service using such spaceships, our plans for rocket motor production, and our objectives for future operations, growth plans, including ticket sales, and the Company’s financial forecasts, including expected free cash flow in the first quarter of 2026 and for subsequent quarters in 2026, are forward-looking statements The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “strategy,” “future,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to any delay in future commercial flights of our spaceflight fleet, our ability to successfully develop and test our next generation vehicles, and the time and costs associated with doing so, our expected capital requirements and the availability of additional financing, and the other factors, risks and uncertainties included in our most recent Annual Report on Form 10-K, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at www.virgingalactic.com, which could cause our actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
Fourth Quarter 2025 Financial Results
VIRGIN GALACTIC HOLDINGS, INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per share amounts)
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Revenue | $ | 312 | $ | 429 | $ | 1,544 | $ | 7,036 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||
| Spaceline operations | 18,240 | 20,271 | 72,769 | 90,024 | ||||||||||||||||||||||
| Research and development | 12,083 | 28,237 | 80,466 | 152,678 | ||||||||||||||||||||||
| Selling, general and administrative | 26,802 | 29,703 | 117,167 | 125,496 | ||||||||||||||||||||||
| Depreciation and amortization | 3,974 | 4,171 | 16,485 | 15,467 | ||||||||||||||||||||||
| Total operating expenses | 61,099 | 82,382 | 286,887 | 383,665 | ||||||||||||||||||||||
| Operating loss | (60,787) | (81,953) | (285,343) | (376,629) | ||||||||||||||||||||||
| Interest income | 3,829 | 8,573 | 21,842 | 42,352 | ||||||||||||||||||||||
| Interest expense | (3,045) | (3,237) | (12,782) | (12,927) | ||||||||||||||||||||||
Debt restructuring expense | (2,798) | — | (2,798) | — | ||||||||||||||||||||||
| Other income, net | 119 | 59 | 226 | 538 | ||||||||||||||||||||||
| Loss before income taxes | (62,682) | (76,558) | (278,855) | (346,666) | ||||||||||||||||||||||
Income tax expense (benefit) | 41 | (145) | 52 | 74 | ||||||||||||||||||||||
| Net loss | (62,723) | (76,413) | (278,907) | (346,740) | ||||||||||||||||||||||
| Other comprehensive income (loss): | ||||||||||||||||||||||||||
| Foreign currency translation adjustment | (6) | (25) | 6 | — | ||||||||||||||||||||||
| Unrealized loss on marketable securities | (81) | (939) | (152) | (93) | ||||||||||||||||||||||
| Total comprehensive loss | $ | (62,810) | $ | (77,377) | $ | (279,053) | $ | (346,833) | ||||||||||||||||||
| Net loss per share: | ||||||||||||||||||||||||||
| Basic and diluted | $ | (0.98) | $ | (2.53) | $ | (5.44) | $ | (13.89) | ||||||||||||||||||
| Weighted-average shares outstanding: | ||||||||||||||||||||||||||
| Basic and diluted | 64,232 | 30,254 | 51,242 | 24,955 | ||||||||||||||||||||||
VIRGIN GALACTIC HOLDINGS, INC.
Condensed Consolidated Balance Sheets
(In thousands)
| | ||||||||||||||
| December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Assets | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 144,727 | $ | 178,605 | ||||||||||
| Restricted cash | 30,988 | 32,280 | ||||||||||||
| Marketable securities, short-term | 162,313 | 384,621 | ||||||||||||
| Other current assets | 34,870 | 32,430 | ||||||||||||
| Total current assets | 372,898 | 627,936 | ||||||||||||
| Marketable securities, long-term | — | 61,280 | ||||||||||||
| Property, plant and equipment, net | 388,730 | 209,114 | ||||||||||||
| Other non-current assets | 41,551 | 62,895 | ||||||||||||
| Total assets | $ | 803,179 | $ | 961,225 | ||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 15,163 | $ | 3,696 | ||||||||||
Current portion of long-term debt | 47,830 | — | ||||||||||||
| Customer deposits | 78,535 | 84,493 | ||||||||||||
| Other current liabilities | 67,795 | 61,821 | ||||||||||||
| Total current liabilities | 209,323 | 150,010 | ||||||||||||
| Non-current liabilities: | ||||||||||||||
| Long-term debt | 276,362 | 420,120 | ||||||||||||
| Other long-term liabilities | 43,530 | 68,815 | ||||||||||||
| Total liabilities | 529,215 | 638,945 | ||||||||||||
| Stockholders’ Equity | ||||||||||||||
| Common stock | 7 | 3 | ||||||||||||
| Additional paid-in capital | 3,025,604 | 2,794,871 | ||||||||||||
| Accumulated deficit | (2,751,779) | (2,472,872) | ||||||||||||
| Accumulated other comprehensive income | 132 | 278 | ||||||||||||
| Total stockholders’ equity | 273,964 | 322,280 | ||||||||||||
| Total liabilities and stockholders’ equity | $ | 803,179 | $ | 961,225 | ||||||||||
VIRGIN GALACTIC HOLDINGS, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||||||||
| Net loss | $ | (62,723) | $ | (76,413) | $ | (278,907) | $ | (346,740) | ||||||||||||||||||
| Stock-based compensation | 4,378 | 5,712 | 18,698 | 29,752 | ||||||||||||||||||||||
| Depreciation and amortization | 3,974 | 4,171 | 16,485 | 15,467 | ||||||||||||||||||||||
| Amortization of debt issuance costs | 571 | 565 | 2,292 | 2,234 | ||||||||||||||||||||||
| Accretion of marketable securities purchased at a discount | (691) | (2,673) | (6,071) | (16,635) | ||||||||||||||||||||||
| Other non-cash items | 14 | 827 | (4) | 1,457 | ||||||||||||||||||||||
| Change in operating assets and liabilities: | ||||||||||||||||||||||||||
| Other current and non-current assets | 784 | (3,058) | (3,609) | 10,566 | ||||||||||||||||||||||
| Accounts payable | 6,206 | (3,839) | 11,220 | (29,203) | ||||||||||||||||||||||
| Customer deposits | (1,663) | (1,647) | (5,958) | (13,348) | ||||||||||||||||||||||
| Other current and non-current liabilities | (3,325) | (4,680) | 5,712 | (6,253) | ||||||||||||||||||||||
| Net cash used in operating activities | (52,475) | (81,035) | (240,142) | (352,703) | ||||||||||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||||||||
| Capital expenditures | (42,153) | (35,709) | (198,045) | (121,855) | ||||||||||||||||||||||
| Purchases of marketable securities | (6,289) | (16,073) | (313,043) | (543,434) | ||||||||||||||||||||||
| Proceeds from maturities and calls of marketable securities | 109,418 | 110,982 | 601,923 | 840,335 | ||||||||||||||||||||||
| Other investing activities | — | 12 | 8 | 610 | ||||||||||||||||||||||
| Net cash provided by investing activities | 60,976 | 59,212 | 90,843 | 175,656 | ||||||||||||||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||||||||
| Proceeds from issuance of long-term debt | 212,496 | — | 212,496 | — | ||||||||||||||||||||||
| Repurchase of convertible debt | (320,601) | — | (320,601) | — | ||||||||||||||||||||||
Debt issuance costs | (1,827) | — | (1,827) | — | ||||||||||||||||||||||
| Payments of finance lease obligations | (57) | (44) | (211) | (193) | ||||||||||||||||||||||
| Proceeds from issuance of common stock pursuant to at-the-market offering | 12,483 | 29,098 | 121,643 | 137,796 | ||||||||||||||||||||||
| Transaction costs related to issuance of common stock pursuant to at-the-market offering | (344) | (1,008) | (3,523) | (2,054) | ||||||||||||||||||||||
| Proceeds from issuance of common stock and Pre-Funded Warrants pursuant to Registered Offering | 45,588 | — | 45,588 | — | ||||||||||||||||||||||
| Proceeds from issuance of Purchase Warrants | 62,517 | — | 62,517 | — | ||||||||||||||||||||||
Transaction costs related to issuance of common stock and equity-classified warrants | (2,243) | — | (2,243) | — | ||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Proceeds from issuance of common stock pursuant to ESPP | 473 | — | 473 | — | ||||||||||||||||||||||
| Withholding taxes paid on behalf of employees on net settled stock-based awards | (65) | (54) | (183) | (1,207) | ||||||||||||||||||||||
| Other financing activities | — | — | — | (2) | ||||||||||||||||||||||
Net cash provided by (used in) financing activities | 8,420 | 27,992 | 114,129 | 134,340 | ||||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 16,921 | 6,169 | (35,170) | (42,707) | ||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 158,794 | 204,716 | 210,885 | 253,592 | ||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 175,715 | $ | 210,885 | $ | 175,715 | $ | 210,885 | ||||||||||||||||||
| Cash and cash equivalents | $ | 144,727 | $ | 178,605 | $ | 144,727 | $ | 178,605 | ||||||||||||||||||
| Restricted cash | 30,988 | 32,280 | 30,988 | 32,280 | ||||||||||||||||||||||
| Cash, cash equivalents and restricted cash | $ | 175,715 | $ | 210,885 | $ | 175,715 | $ | 210,885 | ||||||||||||||||||
USE OF NON-GAAP FINANCIAL MEASURES
This press release references certain financial measures that are not prepared in accordance with GAAP, including non-GAAP total operating expenses, Adjusted EBITDA and free cash flow. The Company defines non-GAAP total operating expenses as total operating expenses other than stock-based compensation, depreciation and amortization and legal settlement expense. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation and amortization, stock-based compensation, legal settlement expense and debt restructuring expense. The Company defines free cash flow as net cash provided by operating activities less capital expenditures. None of these non-GAAP financial measures is a substitute for or superior to measures prepared in accordance with GAAP and should not be considered as an alternative to any other measures derived in accordance with GAAP.
The Company believes that presenting these non-GAAP financial measures provides useful supplemental information to investors about the Company in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational-decision making. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore any non-GAAP measures the Company uses may not be directly comparable to similarly titled measures of other companies.
A reconciliation of total operating expenses to non-GAAP total operating expenses for the three months ended December 31, 2025 and 2024 and years ended December 31, 2025 and 2024, respectively, is set forth below (in thousands):
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Total operating expenses | $ | 61,099 | $ | 82,382 | $ | 286,887 | $ | 383,665 | ||||||||||||||||||
| Stock-based compensation | 4,378 | 5,712 | 18,698 | 29,752 | ||||||||||||||||||||||
| Depreciation and amortization | 3,974 | 4,171 | 16,485 | 15,467 | ||||||||||||||||||||||
| Legal settlement expense | (125) | — | 2,250 | — | ||||||||||||||||||||||
Non-GAAP total operating expenses | $ | 52,872 | $ | 72,499 | $ | 249,454 | $ | 338,446 | ||||||||||||||||||
A reconciliation of net loss to Adjusted EBITDA for the three months ended December 31, 2025 and 2024 and years ended December 31, 2025 and 2024, respectively, is set forth below (in thousands):
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Net loss | $ | (62,723) | $ | (76,413) | $ | (278,907) | $ | (346,740) | ||||||||||||||||||
| Interest expense | 3,045 | 3,237 | 12,782 | 12,927 | ||||||||||||||||||||||
Income tax expense (benefit) | 41 | (145) | 52 | 74 | ||||||||||||||||||||||
| Depreciation and amortization | 3,974 | 4,171 | 16,485 | 15,467 | ||||||||||||||||||||||
| Stock-based compensation | 4,378 | 5,712 | 18,698 | 29,752 | ||||||||||||||||||||||
| Legal settlement expense | (125) | — | 2,250 | — | ||||||||||||||||||||||
| Debt restructuring expense | 2,798 | — | 2,798 | — | ||||||||||||||||||||||
| Adjusted EBITDA | $ | (48,612) | $ | (63,438) | $ | (225,842) | $ | (288,520) | ||||||||||||||||||
The following table reconciles net cash used in operating activities to free cash flow for the three months ended December 31, 2025 and 2024 and years ended December 31, 2025 and 2024, respectively (in thousands):
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| Net cash used in operating activities | $ | (52,475) | $ | (81,035) | $ | (240,142) | $ | (352,703) | ||||||||||||||||||
| Capital expenditures | (42,153) | (35,709) | (198,045) | (121,855) | ||||||||||||||||||||||
| Free cash flow | $ | (94,628) | $ | (116,744) | $ | (438,187) | $ | (474,558) | ||||||||||||||||||
The Company has not provided a reconciliation of forward-looking free cash flow to the most directly comparable GAAP financial measures because such a reconciliation is not available without unreasonable efforts, due to the variability of these items and the fact that there is substantial uncertainty associated with predicting any future adjustments that we may make to our GAAP financial measures in calculating our non-GAAP financial measures.
_______________
For media inquiries:
Aleanna Crane - Vice President, Communications
news@virgingalactic.com
575.800.4422
For investor inquiries:
Eric Cerny - Vice President, Investor Relations
vg-ir@virgingalactic.com
949.774.7637
FAQ
How did Virgin Galactic (SPCE) perform financially in Q4 2025?
Virgin Galactic reported Q4 2025 revenue of $0.3 million and a net loss of $63 million. Operating expenses fell to $61 million, improving Adjusted EBITDA to $(49) million. Free cash flow was $(95) million, better than the prior year’s $(117) million.
What were Virgin Galactic’s full year 2025 results?
For 2025, Virgin Galactic generated $2 million of revenue versus $7 million in 2024, reflecting a pause in commercial flights. Net loss improved to $279 million, with Adjusted EBITDA of $(226) million and free cash flow of $(438) million, all better than 2024 levels.
What is Virgin Galactic’s cash position and cash burn exiting 2025?
As of December 31, 2025, Virgin Galactic held $338 million in cash, cash equivalents and marketable securities. Free cash flow was $(438) million for 2025, and guidance for Q1 2026 free cash flow is between $(90) million and $(95) million.
When does Virgin Galactic expect its new SpaceShips to enter commercial service?
Virgin Galactic expects commercial spaceflight operations with its first new SpaceShip to begin in Q4 2026. The second new SpaceShip is expected to enter service between late Q4 2026 and early Q1 2027, supporting a planned ramp in flight cadence.
How much will Virgin Galactic charge for its Spaceflight Expeditions tickets?
Virgin Galactic has released a limited number of Spaceflight Expeditions, each priced at $750,000. These tickets target high-net-worth customers seeking suborbital space experiences and are linked to the company’s next-generation SpaceShip fleet now moving into testing and future commercial operations.
How is Virgin Galactic funding its operations and fleet development?
In 2025, Virgin Galactic raised $122 million through at-the-market equity offerings and completed other equity-linked financings. It also executed debt realignment transactions that reduced contractual debt obligations by $142 million, helping support liquidity while funding fleet development and ongoing cash burn.
What guidance did Virgin Galactic give for 2026 free cash flow?
Virgin Galactic expects Q1 2026 free cash flow between $(90) million and $(95) million. Management also indicated that free cash flow for the remainder of 2026 is expected to show sequential improvement from the first quarter, as the company progresses toward future commercial operations.
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