Virgin Galactic pushes positive cash flow timeline as spaceflight launch slips to 2027 - SPCE News | RalliesVirgin Galactic pushes positive cash flow timeline as spaceflight launch slips to 2027
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SPCE• What drove the quarter
- Access fees — Q2 revenue was mainly from access fees related to future astronauts, with no commercial flights in the period
- Lower operating expenses — Net loss narrowed due to lower operating expenses, including reduced research and development and SG&A costs
- Debt extinguishment gain — Net loss improvement was also driven by a gain on extinguishment of debt
Key figures and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|
| Q2 Revenue | Beat | $134,000 | $126,670 (6 analysts) |
| Q2 Net Loss | | $55.89 million | |
| Q2 Operating Expenses | | $65.06 million | |
- The current average analyst rating on the shares is hold, with 2 strong buy or buy, 4 hold, and 2 sell or strong sell recommendations
- The average consensus recommendation for the aerospace and defense peer group is
buy
Wall Street's median 12-month price target for Virgin Galactic Holdings Inc. is $3.03, about 8.1% below its August 11 closing price of $3.29Quarter results and cash burn
- US space travel firm's Q2 revenue declined year over year but beat analyst expectations
- Net loss narrowed to $55.89 million, helped by a debt extinguishment gain and lower expenses
- Shares of the company were down about 3% in extended trading
Launch timing and cash flow outlook
- Virgin Galactic expects Q3 2026 free cash flow between $(95) million and $(100) million, deepening from the second quarter
- The company sees Q4 2026 free cash flow improving to $(80) million to $(90) million
- Virgin Galactic expects its first commercial spaceflight in February 2027, delayed from Q4 2026
- Positive quarterly cash flow is still not expected until sometime within 2027
