Virgin Galactic Announces First Quarter 2025 Financial Results and Provides Business Update
- Future Astronaut Sales Expected to Open in Q1 of 2026
-
Progress on SpaceShips Continues Across Rocket Systems, Avionics, Flight Controls,
Mechanical Systems and Structures -
Commercial Spaceflight Remains Planned for Summer 2026 with
First Research Space Mission
First Quarter 2025 Financial Highlights
-
Cash position remains strong, with cash, cash equivalents and marketable securities of
$567 million as ofMarch 31, 2025 . -
Revenue of
$0.5 million , compared to$2.0 million in the first quarter of 2024, with the decrease driven by the pause in commercial spaceflights to focus efforts on the production of the Delta Class SpaceShips. -
GAAP total operating expenses of
$89 million , compared to$113 million in the first quarter of 2024. Non-GAAP total operating expenses of$80 million in the first quarter of 2025, compared to$101 million in the first quarter of 2024. -
Net loss of
$84 million , compared to a$102 million net loss in the first quarter of 2024, with the improvement primarily driven by lower operating expenses. -
Adjusted EBITDA totaled
$(72) million , compared to$(87) million in the first quarter of 2024, primarily driven by lower operating expenses. -
Net cash used in operating activities totaled
$76 million , compared to$113 million in the first quarter of 2024. -
Cash paid for capital expenditures totaled
$46 million , compared to$13 million in the first quarter of 2024. -
Free cash flow totaled
$(122) million , compared to$(126) million in the first quarter of 2024. -
Generated
$31 million in gross proceeds through the issuance of 6.9 million shares of common stock as part of the Company's at-the-market offering program.
Business Updates
- First spaceflight with new SpaceShip carrying research payloads planned for summer 2026.
- Private astronaut spaceflights planned for fall 2026.
-
Midway through feasibility study to potentially develop second spaceport in
Italy .
Financial Guidance
The following forward-looking statements reflect our expectations for the second quarter of 2025 as of
-
Free cash flow for the second quarter of 2025 is expected to be in the range of
$(105) million to$(115) million .
Non-GAAP Financial Measures
In addition to the Company's results prepared in accordance with generally accepted accounting principles in
Conference Call Information
About
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, development, production and design of our
First Quarter 2025 Financial Results
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Condensed Consolidated Statements of Operations and Comprehensive Loss |
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(In thousands, except per share amounts) |
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Three Months Ended |
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2025 |
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2024 |
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Revenue |
|
$ |
461 |
|
|
$ |
1,985 |
|
|
|
|
|
|
|
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Operating expenses: |
|
|
|
|
||||
|
Spaceline operations |
|
|
20,826 |
|
|
|
22,591 |
|
|
Research and development |
|
|
33,310 |
|
|
|
58,969 |
|
|
Selling, general and administrative |
|
|
30,550 |
|
|
|
27,884 |
|
|
Depreciation and amortization |
|
|
4,223 |
|
|
|
3,699 |
|
|
Total operating expenses |
|
|
88,909 |
|
|
|
113,143 |
|
|
|
|
|
|
|
||||
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Operating loss |
|
|
(88,448 |
) |
|
|
(111,158 |
) |
|
|
|
|
|
|
||||
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Interest income |
|
|
7,215 |
|
|
|
12,308 |
|
|
Interest expense |
|
|
(3,240 |
) |
|
|
(3,227 |
) |
|
Other income, net |
|
|
34 |
|
|
|
145 |
|
|
Loss before income taxes |
|
|
(84,439 |
) |
|
|
(101,932 |
) |
|
Income tax expense |
|
|
48 |
|
|
|
80 |
|
|
Net loss |
|
|
(84,487 |
) |
|
|
(102,012 |
) |
|
Other comprehensive loss: |
|
|
|
|
||||
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Foreign currency translation adjustment |
|
|
(4 |
) |
|
|
(8 |
) |
|
Unrealized loss on marketable securities |
|
|
(176 |
) |
|
|
(864 |
) |
|
Total comprehensive loss |
|
$ |
(84,667 |
) |
|
$ |
(102,884 |
) |
|
|
|
|
|
|
||||
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Net loss per share: |
|
|
|
|
||||
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Basic and diluted |
|
$ |
(2.38 |
) |
|
$ |
(5.10 |
) |
|
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Weighted-average shares outstanding: |
|
|
|
|
||||
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Basic and diluted |
|
|
35,440 |
|
|
|
20,019 |
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Condensed Consolidated Balance Sheets |
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(In thousands) |
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|
2025 |
|
2024 |
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Assets |
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|
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Current assets: |
|
|
|
|
||||
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Cash and cash equivalents |
|
$ |
140,763 |
|
|
$ |
178,605 |
|
|
Restricted cash |
|
|
31,391 |
|
|
|
32,280 |
|
|
Marketable securities, short-term |
|
|
348,754 |
|
|
|
384,621 |
|
|
Other current assets |
|
|
26,659 |
|
|
|
32,430 |
|
|
Total current assets |
|
|
547,567 |
|
|
|
627,936 |
|
|
Marketable securities, long-term |
|
|
45,605 |
|
|
|
61,280 |
|
|
Property, plant and equipment, net |
|
|
249,219 |
|
|
|
209,114 |
|
|
Other non-current assets |
|
|
61,542 |
|
|
|
62,895 |
|
|
Total assets |
|
$ |
903,933 |
|
|
$ |
961,225 |
|
|
Liabilities and Stockholders' Equity |
|
|
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Current liabilities: |
|
|
|
|
||||
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Accounts payable |
|
$ |
2,956 |
|
|
$ |
3,696 |
|
|
Customer deposits |
|
|
82,197 |
|
|
|
84,493 |
|
|
Other current liabilities |
|
|
58,671 |
|
|
|
61,821 |
|
|
Total current liabilities |
|
|
143,824 |
|
|
|
150,010 |
|
|
Non-current liabilities: |
|
|
|
|
||||
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Convertible senior notes, net |
|
|
420,689 |
|
|
|
420,120 |
|
|
Other long-term liabilities |
|
|
67,249 |
|
|
|
68,815 |
|
|
Total liabilities |
|
|
631,762 |
|
|
|
638,945 |
|
|
Stockholders' Equity |
|
|
|
|
||||
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Common stock |
|
|
4 |
|
|
|
3 |
|
|
Additional paid-in capital |
|
|
2,829,428 |
|
|
|
2,794,871 |
|
|
Accumulated deficit |
|
|
(2,557,359 |
) |
|
|
(2,472,872 |
) |
|
Accumulated other comprehensive income |
|
|
98 |
|
|
|
278 |
|
|
Total stockholders' equity |
|
|
272,171 |
|
|
|
322,280 |
|
|
Total liabilities and stockholders' equity |
|
$ |
903,933 |
|
|
$ |
961,225 |
|
|
|
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Condensed Consolidated Statements of Cash Flows |
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(In thousands) |
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Three Months Ended |
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|
2025 |
|
2024 |
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Cash flows from operating activities: |
|
|
|
|
||||
|
Net loss |
|
$ |
(84,487 |
) |
|
$ |
(102,012 |
) |
|
Stock-based compensation |
|
|
4,769 |
|
|
|
8,244 |
|
|
Depreciation and amortization |
|
|
4,223 |
|
|
|
3,699 |
|
|
Amortization of debt issuance costs |
|
|
569 |
|
|
|
552 |
|
|
Accretion of marketable securities purchased at a discount |
|
|
(2,193 |
) |
|
|
(5,328 |
) |
|
Other non-cash items |
|
|
(14 |
) |
|
|
— |
|
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Change in operating assets and liabilities: |
|
|
|
|
||||
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Other current and non-current assets |
|
|
5,749 |
|
|
|
3,835 |
|
|
Accounts payable |
|
|
(751 |
) |
|
|
(7,480 |
) |
|
Customer deposits |
|
|
(2,296 |
) |
|
|
(5,507 |
) |
|
Other current and non-current liabilities |
|
|
(1,487 |
) |
|
|
(9,232 |
) |
|
Net cash used in operating activities |
|
|
(75,918 |
) |
|
|
(113,229 |
) |
|
Cash flows from investing activities: |
|
|
|
|
||||
|
Capital expenditures |
|
|
(46,047 |
) |
|
|
(13,072 |
) |
|
Purchases of marketable securities |
|
|
(104,607 |
) |
|
|
(161,843 |
) |
|
Proceeds from maturities and calls of marketable securities |
|
|
158,121 |
|
|
|
257,414 |
|
|
Other investing activities |
|
|
8 |
|
|
|
598 |
|
|
Net cash provided by investing activities |
|
|
7,475 |
|
|
|
83,097 |
|
|
Cash flows from financing activities: |
|
|
|
|
||||
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Payments of finance lease obligations |
|
|
(46 |
) |
|
|
(60 |
) |
|
Proceeds from issuance of common stock |
|
|
30,730 |
|
|
|
7,272 |
|
|
Withholding taxes paid on behalf of employees on net settled stock-based awards |
|
|
(50 |
) |
|
|
(269 |
) |
|
Transaction costs related to issuance of common stock |
|
|
(922 |
) |
|
|
(52 |
) |
|
Net cash provided by financing activities |
|
|
29,712 |
|
|
|
6,891 |
|
|
Net decrease in cash, cash equivalents and restricted cash |
|
|
(38,731 |
) |
|
|
(23,241 |
) |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
210,885 |
|
|
|
253,592 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
172,154 |
|
|
$ |
230,351 |
|
|
|
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
140,763 |
|
|
$ |
195,433 |
|
|
Restricted cash |
|
|
31,391 |
|
|
|
34,918 |
|
|
Cash, cash equivalents and restricted cash |
|
$ |
172,154 |
|
|
$ |
230,351 |
|
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 and depreciation and amortization. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation and amortization, and stock-based compensation. 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
|
|
|
Three Months Ended |
||||
|
|
|
2025 |
|
2024 |
||
|
Total operating expenses |
|
$ |
88,909 |
|
$ |
113,143 |
|
Stock-based compensation |
|
|
4,769 |
|
|
8,244 |
|
Depreciation and amortization |
|
|
4,223 |
|
|
3,699 |
|
Non-GAAP total operating expenses |
|
$ |
79,917 |
|
$ |
101,200 |
A reconciliation of net loss to Adjusted EBITDA for the three months ended
|
|
|
Three Months Ended |
||||||
|
|
|
2025 |
|
2024 |
||||
|
Net loss |
|
$ |
(84,487 |
) |
|
$ |
(102,012 |
) |
|
Interest expense |
|
|
3,240 |
|
|
|
3,227 |
|
|
Income tax expense |
|
|
48 |
|
|
|
80 |
|
|
Depreciation and amortization |
|
|
4,223 |
|
|
|
3,699 |
|
|
Stock-based compensation |
|
|
4,769 |
|
|
|
8,244 |
|
|
Adjusted EBITDA |
|
$ |
(72,207 |
) |
|
$ |
(86,762 |
) |
The following table reconciles net cash used in operating activities to free cash flow for the three months ended
|
|
|
Three Months Ended |
||||||
|
|
|
2025 |
|
2024 |
||||
|
Net cash used in operating activities |
|
$ |
(75,918 |
) |
|
$ |
(113,229 |
) |
|
Capital expenditures |
|
|
(46,047 |
) |
|
|
(13,072 |
) |
|
Free cash flow |
|
$ |
(121,965 |
) |
|
$ |
(126,301 |
) |
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250515866413/en/
For media inquiries:
Aleanna Crane - Vice President, Communications
news@virgingalactic.com
575.800.4422
For investor inquiries:
vg-ir@virgingalactic.com
949.774.7637
Source:
