Virgin Galactic Reports Revenue Decline to $461,000 in Q1 2025

Virgin Galactic Holdings, Inc. reported a significant decline in revenue for the first quarter of 2025, generating $461,000 compared to $1.985 million in the same period of 2024. The company attributed this decrease primarily to the suspension of its commercial spaceflights, which are expected to resume in the summer of 2026. Operating expenses also decreased to $88.9 million from $113.1 million year-over-year, driven by reduced research and development costs, which fell by 44% to $33.3 million, and a decrease in spaceline operations expenses, which dropped by 8% to $20.8 million.

The net loss for the quarter was $84.5 million, an improvement from the $102 million loss reported in the first quarter of 2024. This resulted in a net loss per share of $2.38, compared to $5.10 in the prior year. The company’s total assets decreased to $903.9 million from $961.2 million at the end of 2024, with cash and cash equivalents also declining to $140.8 million from $178.6 million. The reduction in cash was attributed to ongoing operational expenditures and capital investments.

In terms of strategic developments, Virgin Galactic is progressing with the development of its next-generation Delta Class spaceships, with the first research spaceflight anticipated in the summer of 2026. The company has received reservations for approximately 675 future astronauts, representing an expected $189 million in future revenue. The company’s employee headcount has increased, with 39.99 million shares outstanding as of March 31, 2025, up from 32.99 million shares at the end of 2024, reflecting ongoing efforts to expand its workforce in preparation for future operations.

Operationally, Virgin Galactic's cash flow from operating activities showed a net outflow of $75.9 million for the quarter, an improvement from the $113.2 million outflow in the same period last year. The company generated $29.7 million in cash from financing activities, primarily through the sale of common stock under its at-the-market offering program. Looking ahead, Virgin Galactic expects to meet its liquidity needs through its current cash reserves and marketable securities, which totaled $394.4 million as of March 31, 2025. The company remains focused on scaling its operations and preparing for the anticipated resumption of commercial flights, while also navigating the challenges posed by market conditions and operational risks.