Virgin Galactic 2025 Q1 Earnings Misses Targets, Net Loss Narrows 17.2%

Virgin Galactic (SPCE) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The company fell short of revenue expectations but showed a significant improvement in narrowing its net loss. Despite a challenging quarter, Virgin Galactic has maintained focus on future growth, highlighting plans for commercial spaceflights in 2026. The guidance indicates caution due to industry uncertainties, yet optimism prevails regarding the development of new spacecraft. Investors should monitor upcoming earnings calls for insights into the company's trajectory.

Revenue
The total revenue of Virgin Galactic decreased by 76.8% to $461,000 in 2025 Q1, down from $1.99 million in 2024 Q1.

Earnings/Net Income
Virgin Galactic narrowed its losses to $2.38 per share in 2025 Q1 from a loss of $5.10 per share in 2024 Q1, a 53.3% improvement. The company reduced its net loss to $-84.49 million in 2025 Q1, marking a 17.2% reduction compared to the $-102.01 million in 2024 Q1. The EPS remains below expectations but shows improvement.

Price Action
The stock price of Virgin Galactic has dropped 4.29% during the latest trading day, climbed 6.69% during the most recent full trading week, and surged 28.85% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Virgin Galactic (SPCE) stock when revenues exceed expectations and holding for 30 days has demonstrated potential for gains, although it carries inherent risks. Historical analysis from the first quarter of 2024 to the first quarter of 2025 shows a positive market response when SPCE's revenues surpassed forecasts. After the recent earnings release, the stock surged by 16.72% in aftermarket trading on May 15, 2025. Holding the stock for 30 days resulted in a notable increase, with the price reaching $3.91, reflecting a 39.6% gain from the start of the year. The company's financial results for Q1 2025, with a revenue of approximately $500,000, exceeded the Zacks Consensus Estimate by 15.25%. Additionally, a 21% year-over-year reduction in operating expenses contributed to a decreased net loss of $84 million, indicating a strengthening profitability trend. Nonetheless, investors should be mindful of overall market conditions and company-specific factors, such as negative free cash flow of $122 million and the necessity for equity financing, which may impact future stock performance.

CEO Commentary
Michael Colglazier, Chief Executive Officer of Virgin Galactic, expressed optimism about the first quarter, highlighting strong progress in the development of new SpaceShips and affirming plans for commercial spaceflight in 2026. He emphasized the significant assets under construction, anticipating a powerful and profitable business model driven by an industry-leading cost structure, fixed-cost leverage, and an exceptional customer experience. The CEO acknowledged challenges related to the pause in commercial spaceflights, which impacted revenue, but underscored the company's commitment to advancing its technological capabilities and operational readiness.

Guidance
The company expects free cash flow for the second quarter of 2025 to be in the range of $(105) million to $(115) million. Forward-looking statements indicate a cautious approach, acknowledging the substantial uncertainty surrounding future operations, including spaceflight systems and the timeline for commercial service. Key factors influencing these expectations include ongoing development efforts and market conditions impacting the aerospace industry.

Additional News
Virgin Galactic announced plans to restart commercial spaceflights and has logged a narrower loss in the first quarter, leading to a 16% rise in after-hours trading. The company's stock has decreased by 84% over the past 12 months. Virgin Galactic aims to relaunch commercial spaceflights in 2026, with its first research space mission planned for summer and private astronaut spaceflights in the fall of the same year. Additionally, the company is conducting a feasibility study for a potential second spaceport in Italy. CEO Michael Colglazier highlighted the strong progress in building new spaceships and anticipated a profitable business model.