Virgin Galactic Reports Revenue Decline and Net Loss in Q2 2025

Virgin Galactic Holdings, Inc. reported a significant decline in financial performance for the second quarter of 2025, with revenue dropping to $406,000 compared to $4.2 million in the same period last year. For the first half of 2025, the company generated $867,000 in revenue, down from $6.2 million in the first half of 2024. The decrease in revenue is attributed primarily to the pause in commercial spaceflight sales, as the company prepares for the launch of its next-generation spaceflight vehicles, which are expected to commence operations in 2026.

Operating expenses for the second quarter of 2025 totaled $70.3 million, a decrease from $106 million in the prior year, reflecting a 34% reduction. This decline was driven by lower costs in spaceline operations, which fell by 48% to $14.2 million, and a 52% reduction in research and development expenses, which amounted to $20.1 million. The company reported a net loss of $67.3 million for the quarter, an improvement from the $93.7 million loss recorded in the same period of 2024. The loss per share for the second quarter was $1.47, compared to $4.36 a year earlier.

In terms of operational developments, Virgin Galactic has made progress on its Delta Class spaceships, with commercial service planned for 2026. As of June 30, 2025, the company reported approximately 675 reservations for future spaceflights, representing an estimated $190 million in potential revenue. The company has also expanded its employee headcount, with 55.8 million shares of common stock outstanding as of the end of the quarter, reflecting ongoing efforts to bolster its workforce in anticipation of increased operational capacity.

The company’s liquidity position remains stable, with cash, cash equivalents, and restricted cash totaling $193.7 million as of June 30, 2025. Virgin Galactic has also engaged in capital-raising activities, generating $86.3 million from the sale of common stock under its at-the-market offering program during the first half of 2025. Looking ahead, the company expects to continue investing in its next-generation spaceflight systems and anticipates that its expenditures will increase as it scales up operations and prepares for the resumption of commercial flights. However, management cautioned that future performance is subject to various risks, including market conditions and operational challenges.