SPCE · Virgin Galactic Holdings, Inc.

Virgin Galactic's first quarter 2026 results reflect continued progress toward commercial spaceflight operations. Revenue was minimal at $0.2 million, primarily from access fees related to future astronauts, down from $0.5 million in the prior year. Total GAAP operating expenses decreased 26% year-over-year to $65.8 million, driven by lower research and development costs ($6.7 million vs. $33.3 million) as the company transitions from development to testing. Selling, general and administrative expenses also declined to $25.6 million from $30.6 million. The net loss improved to $64.7 million from $84.5 million, with adjusted EBITDA of $(54.8) million versus $(72.2) million. Cash flow from operations used $53.5 million, and capital expenditures were $39.8 million, resulting in free cash flow of $(93.3) million. The company ended the quarter with $251 million in cash, cash equivalents, and marketable securities. Management highlighted that the first new SpaceShip has moved from assembly to the test-and-launch hangar, with ground testing underway. Flight testing remains on track for Q3 2026, and the first spaceflight is expected in Q4 2026. The company also provided Q2 2026 free cash flow guidance of $(87) to $(92) million, with sequential improvement expected for the remainder of the year. CEO Michael Colglazier noted that spending continues to decline quarter by quarter and debt retirements are on schedule. In April 2026, the company raised $52 million in gross proceeds from its at-the-market offering and redeemed $10 million of debt. The remaining first lien notes due December 2028 stand at $202 million. The company is also constructing a rocket motor production assembly line in Arizona. Overall, the results show disciplined cost management and steady progress toward the milestone of commercial spaceflight, though the company remains pre-revenue and cash burn continues.