Virgin Galactic Begins Delta-Class Testing, Eyes Q4 Flights and Swaps $52.5M Notes
SPCE•Virgin Galactic began testing its Delta-class spacecraft with commercial flights targeted for Q4 2026 and plans glide-testing in Q3 2026. The company exchanged $52.5 million of convertible notes for equity and warrants, reducing debt by 75% and strengthening liquidity.
1. Future Astronaut Factory Tour
Virgin Galactic invited members of its future astronaut community to tour its spacecraft assembly facility, showcasing next-generation Delta-class vehicles under construction. Visitors engaged with engineering and production teams and observed propulsion manufacturing initiatives designed to support higher flight frequencies.
2. Delta-Class Testing and Flight Timeline
Testing of the first Delta-class spacecraft has commenced, with glide tests planned for Q3 2026 and full commercial passenger flights targeted for Q4 2026. The new fleet aims to reduce maintenance requirements and shorten turnaround times compared with the retired VSS Unity program.
3. Convertible Note Exchange
The company agreed to swap $52.5 million of its 2027 convertible notes for equity and warrants, cutting outstanding debt by roughly 75%. This transaction bolsters liquidity ahead of scaled commercial operations and improves the balance sheet.
4. Financial Position and Outlook
In Q1 2026, Virgin Galactic recorded $227,000 in revenue and held about $251 million in cash and securities. Future revenue growth hinges on successful Delta program milestones, with ticket prices set at $750,000 per passenger.
