Virgin Galactic Reports $0.4 Million in Revenue and $59 Million Loss in Third Quarter
Key Facts
Virgin Galactic reported results for the third quarter ended September 30, 2026, after the U.S. market close on November 12, posting revenue of $0.4 million and a net loss of $59 million. The company said revenue came from entry fees associated with future astronauts and an event for one of them. Revenue therefore remained at the same level recorded in the third quarter of 2025, while the loss narrowed from $64 million in the year-earlier period. The company attributed the improvement in its net result mainly to lower operating expenses during the quarter. Results also showed basic and diluted loss per share of $0.39, compared with $1.09 a year earlier.
Operating expenses calculated under U.S. generally accepted accounting principles fell to $59 million from $67 million in the third quarter of 2025. On a non-GAAP basis, operating expenses were $49 million, compared with $58 million a year earlier. The decline in expenses reflects the factor the company said drove the narrowing of its net loss, despite revenue holding steady at $0.4 million. In the second quarter of 2026, the company had reported revenue of $0.1 million and a net loss of $56 million. Second-quarter 2025 revenue was about $0.4 million, while its loss was $67 million, placing the third-quarter figures on a path of year-over-year improvement in losses, but not revenue compared with the corresponding quarter.
Cash, cash equivalents and marketable securities totaled $184 million on September 30, 2026. The company had reported a balance of $286 million on June 30, highlighting the decline in liquidity between the end of the second quarter and the end of the third. Virgin Galactic used $58 million in cash in operating activities during the quarter, compared with $56 million in the same period of 2025. Despite the decline in operating expenses, cash used in operating activities rose year over year. The company expects negative free cash flow of between $80 million and $90 million in the fourth quarter of 2026, putting continued cash consumption among the key elements of its next financial update.
On demand, the company said in its November 12 update that more than 100 future astronauts had begun preparations for upcoming flights and that it had opened a limited number of bookings at $850,000 per seat. In August, it announced that a tranche of future flights had sold out ahead of schedule at $750,000 per seat, with demand exceeding the seats offered. It said at the time that those bookings added more than $50 million to expected future spaceflight revenue. On October 28, the Apeiron vehicle arrived at Spaceport America, where the company said it would complete integration and verification of avionics software in preparation for flight tests. These steps mark progress in operational readiness, while third-quarter revenue remained limited at $0.4 million.
Virgin Galactic expects to conduct Apeiron's first glide flight in January, with commercial flights set to begin in early second quarter of 2027 after completion of the flight-test program. It also aims to begin commercial flights with its second vehicle in late second quarter or early third quarter of 2027. In August, the company said the first vehicle was expected to enter commercial service in February 2027, instead of the fourth quarter of 2026, to allow more time for installation of systems and avionics. The company plans to open a high-cadence launch hangar and fueling infrastructure in the second half of 2028. It expects this infrastructure to increase operating capacity 20% to 150 spaceflights annually by the end of 2028.
In regular trading on November 12, the company's shares fell 6.97% to close at $2.67, then declined to $2.625 after the close, down a further 1.69%, according to Investing.com coverage citing Reuters. The drop came in the session after the results were released, although the coverage reported that quarterly results exceeded analysts' expectations. Virgin Galactic had scheduled its results call for that day at 5 p.m. Eastern time. The stock had closed at $2.87 in the November 11 session, according to EL7 data. The operational dates announced by the company remain contingent on completing flight tests and preparing both vehicles, while the company expects negative free cash flow of $80 million to $90 million in the fourth quarter.