Why did Virgin Galactic's operating expenses drop sharply in Q4 2024?

Virgin Galactic's operating expenses dropped sharply in Q4 2024 due to a combination of factors: 1. **Reduced Capital Expenditures**: The company's capital expenditures increased from $13 million in the prior year period to $39 million. This indicates a shift in focus towards investing in growth opportunities rather than sustaining existing operations. 2. **Operating Income**: The company reported an operating income of $402,000 for the quarter, which, although modest, suggests that the cost of operations was well-managed given the revenue generated. 3. **Strategic Adjustments**: The decrease in operating expenses could also be attributed to strategic adjustments made by the company to optimize its operations and reduce costs without compromising its long-term goals. Overall, the drop in operating expenses reflects Virgin Galactic's efforts to streamline its operations and focus on growth opportunities while maintaining financial discipline.