Virgin Galactic's performance falls short of expectations, but the stock still rises over 5%, as spacecraft testing approaches.

2026-03-31 14:53:08

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Orange County, California — On Monday, Virgin Galactic Holdings Inc. (NYSE: SPCE) reported a fourth-quarter per-share loss of $0.98 for the period ended December 31, 2025, with revenue of $310,000. Revenue fell 27% year over year, compared with $429,000 in the same period last year.

After the earnings release, the company’s stock price rose 5.53% in pre-market trading.

The company announced that sales for its spaceflight exploration program are now open, priced at $7.5 million. Its first new spacecraft will enter the ground testing phase in April, with flight testing scheduled to begin in the third quarter of 2026.

Chief Executive Officer Michael Colglazier said: “We completed key milestones in the first quarter of 2026, and as assembly of our first spacecraft nears completion and ground testing begins in April, we have released a limited Virgin Galactic spaceflight exploration program, priced at $7.5 million per flight.”

Commercial spaceflight operations for the first new spacecraft are still scheduled to begin in the fourth quarter of 2026, while the second spacecraft is expected to enter service between the end of the fourth quarter of 2026 and the beginning of the first quarter of 2027.

The company plans to begin manufacturing rocket engines at its factory in Phoenix in the fourth quarter of 2026.

Virgin Galactic’s net loss narrowed from $76 million in the same period last year to $63 million, mainly due to lower operating expenses.

Adjusted EBITDA improved to negative $49 million, compared with negative $63 million in the fourth quarter of 2024. As of December 31, 2025, the company maintained a cash position of $338 million.

For the first quarter of 2026, Virgin Galactic expects free cash flow to be between negative $90 million and negative $95 million, with the midpoint at negative $92.5 million. The company said free cash flow for the remainder of 2026 is expected to improve quarter over quarter from the first quarter.

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