10-Q · May 14, 2026
Virgin Galactic reported Q1 2026 results with revenue of $312 million, representing a significant decline compared to $461 million in Q1 2025 and missing consensus estimates of $379.5 million. Although EPS improved to…
Earnings analysis · 10-Q
SPCE earnings analysis
Filed August 12, 2026 · Our reading of the company's report
The latest report
Virgin Galactic exceeded Q2 expectations with revenue of $134,000 versus $121,336 estimated and diluted EPS of $(0.50) versus $(0.64) estimated. EPS improved sequentially and year over year, but revenue declined 41.0%…
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Virgin Galactic exceeded Q2 expectations with revenue of $134,000 versus $121,336 estimated and diluted EPS of $(0.50) versus $(0.64) estimated. EPS improved sequentially and year over year, but revenue declined 41.0% sequentially and 67.0% year over year. The February 2027 commercial-flight timeline and expected free cash flow losses of $(95) million to $(100) million in Q3 and $(80) million to $(90) million in Q4 keep liquidity and execution risk elevated. The 10-Q states there were no material changes to the risk factors disclosed in the Annual Report on Form 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.5
What stood out
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Revenue Beat, But Fell Sequentially
Revenue was $134,000 in Q2 2026, beating the $121,336 consensus estimate by 10.4%, but declining 41.0% sequentially from $227,000 in Q1 2026 and 67.0% year over year from $406,000 in Q2 2025.
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EPS Loss Improved
Diluted EPS was $(0.50), better than the $(0.64) estimate and improved from $(0.81) in Q1 2026 and $(1.47) in Q2 2025.
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Commercial Flight Milestone Updated
The company reported that the first commercial spaceflight is expected in February 2027, providing a revised milestone relative to the prior Q4 2026 expectation.
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Cash Flow Outlook Shows Improvement
Expected Q3 2026 free cash flow was $(95) million to $(100) million and Q4 2026 free cash flow was $(80) million to $(90) million, with positive quarterly cash flow expected within 2027.
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Demand Supports Future Revenue
Management indicated expedition demand represents more than $50 million of expected future revenue at a $750,000 price point.
What to watch
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Commercial Launch Delay
The first commercial spaceflight was pushed to February 2027 from the previously expected fourth quarter of 2026, extending the period before meaningful commercial revenue generation.
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Continued Heavy Cash Burn
Expected free cash flow remains negative at $(95) million to $(100) million in Q3 2026 and $(80) million to $(90) million in Q4 2026, indicating continued substantial cash consumption.
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High-Cost Debt Obligations
The company has 9.80% First Lien Notes due 2028, creating significant financing obligations while quarterly cash flow remains negative.
Management's outlook
The 10-Q excerpt does not provide numeric revenue or EPS guidance. The accompanying earnings update indicates the first commercial spaceflight is now expected in February 2027, versus the prior expectation of Q4 2026; Q3 2026 free cash flow was expected at $(95) million to $(100) million and Q4 2026 free cash flow at $(80) million to $(90) million, with positive quarterly cash flow expected within 2027.
Earlier filings 4
10-K · March 30, 2026
Virgin Galactic emphasizes scaling commercial human spaceflight with next-generation spaceships and launch vehicles, targeting test flights in Q3 2026 and a commercial restart in Q4 2026. Operational milestones include…
10-Q · November 13, 2025
Virgin Galactic reported Q3 2025 revenue of $365,000 and a GAAP net loss of $64.4 million, or $(1.09) per share, an EPS beat versus the $-1.49 estimate. Revenue and operating expense trends show modest revenue decline…
10-Q · August 6, 2025
Virgin Galactic reported Q2 revenue of $406,000 and GAAP net loss per share of $(1.47), with net loss of $67,280,000 for the quarter. Operating loss narrowed to $(69,942,000) as total operating expenses fell to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.