Virgin Galactic pushes positive cash flow timeline as spaceflight launch slips to 2027
Virgin Galactic pushes positive cash flow timeline as spaceflight launch slips to 2027
Overview
US space travel firm's Q2 revenue declined yr/yr but beat analyst expectations
Net loss narrowed to $56 mln, helped by debt extinguishment gain and lower expenses
Company substantially completed $134 mln equity raise; first commercial spaceflight delayed to Feb 2027
Shares of the company were down about 3% in extended trading
Outlook
Virgin Galactic expects Q3 2026 free cash flow between $(95) mln and $(100) mln, deepening from second quarter
Company sees Q4 2026 free cash flow improving to $(80) mln to $(90) mln
Virgin Galactic expects first commercial spaceflight in February 2027, delayed from Q4 2026
Positive quarterly cash flow still not expected until sometime within 2027
Result Drivers
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
Company press release: ID:nBw8xCzF6a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $134,000 | $126,670 (6 Analysts) |
Q2 Net Loss |
| $55.89 mln |
|
Q2 Operating Expenses |
| $65.06 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the aerospace & 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 $3.29
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)