Virgin Galactic Announces $250 Million Share Program as Stock Falls
Key Facts
Virgin Galactic reported third-quarter results on November 12, 2026, and disclosed an agreement allowing it to sell up to $250 million in shares, a move to fund operations, growth projects and part of its debt. The company’s shares, listed under the ticker SPCE, closed at $2.67 in the same session, amid a decline that Reuters said investors linked to continued cash burn, delays to the flight schedule and the share issuance plan. Although the loss per share was lower than analysts’ estimate, that did not prevent the stock from falling. The loss per share was $0.39, compared with an estimated loss of $0.47, beating the estimate by $0.08 per share. The company reported financial results for the quarter ended September 30.
Net loss was $59 million, compared with $64 million in the third quarter of 2025, with the company attributing the improvement mainly to lower operating expenses. Operating expenses under generally accepted accounting principles fell to $59 million from $67 million a year earlier. On a non-GAAP basis, operating expenses were $49 million, compared with $58 million in the year-earlier period. But revenue remained at $427,000, up from $365,000 in the third quarter of 2025. The company said revenue was related to fees from future astronauts and an event for them, while free cash flow was negative $99 million, compared with negative $108 million a year earlier.
Cash, cash equivalents and marketable securities totaled $184 million on September 30. The at-the-market sales agreement with Jefferies allows the company to offer and sell up to $250 million worth of common stock from time to time. The company intends to use the net proceeds for working capital, operations and growth projects, as well as to repay part of its debt. The projects include a high-tempo launch hangar, a fueling facility and expanded rocket-motor production. The bond agreement also requires at least 35% of the offering’s net proceeds to be used to redeem first-lien notes due in 2028, which carry interest of 9.80%; the share issuance adds a source of financing, while a specified portion of its proceeds is tied to debt obligations.
The company expects negative free cash flow of between $80 million and $90 million in the fourth quarter of 2026. In its flight schedule, it is targeting the first glide flight of the "Aperion" vehicle in January 2027, followed by the first commercial spaceflight in early in the second quarter of that year. It expects the second commercial vehicle to enter service in late in the second quarter or early in the third quarter of 2027, with flight frequency ramping toward about 125 flights annually for the initial fleet. The chief executive said "Aperion's" arrival at Spaceport America shifts the focus to operational readiness, preparation for flight testing and the launch of commercial flights. The company plans to open the launch hangar and fueling facility in the second half of 2028, and expects them to raise capacity to 150 spaceflights annually by the end of that year.
The company said more than 100 future astronauts have begun preparing for upcoming flights, with a limited number of bookings open at $850,000 per seat. It completed construction of its rocket-motor production facility in Arizona, but final occupancy approval remains pending, and production preparation has begun on the assembly line. These steps place the facility among the industrial preparations accompanying the operational schedule the company set for 2027. As part of its expansion, the company is targeting an increase in the fleet’s annual capacity to 150 flights by the end of 2028, through the new hangar and fueling infrastructure. The fourth-quarter cash-flow outlook and the timing of upcoming tests and flights remain announced milestones for tracking execution of the plan.