Virgin Galactic Announces Fourth Quarter and Full Year 2025 Financial Results and Provides Business Update
ORANGE COUNTY, Calif.--( BUSINESS WIRE)--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
Full Year 2025 Financial Highlights
Business Updates
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.”
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
)
—
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.