Virgin Galactic — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue was $0.4 million for the quarter, consistent with the third quarter of 2025, driven by access fees related to future astronauts and a future astronaut event.
• GAAP total operating expenses were $59 million, down from $67 million in the third quarter of 2025; Non-GAAP total operating expenses were $49 million, down from $58 million in the prior year period.
• Net loss was $59 million, an improvement from the $64 million net loss in the third quarter of 2025, primarily due to lower operating expenses.
• Adjusted EBITDA totaled $(47) million, improving from $(53) million in the third quarter of 2025, driven by lower operating expenses.
• Net cash used in operating activities was $58 million, compared to $56 million in the third quarter of 2025.
• Free cash flow was $(99) million, compared to $(108) million in the third quarter of 2025.
• Cash, cash equivalents, and marketable securities totaled $184 million as of September 30, 2026.
• Capital expenditures were $41 million, down from $51 million in the third quarter of 2025.
• Total operating expenses for the nine months ended September 30, 2026, were $190.3 million compared to $225.8 million in the same period of 2025.
• Net loss for the nine months ended September 30, 2026, was $179.4 million compared to $216.2 million in 2025.
• Free cash flow for the nine months ended September 30, 2026, was $(283.2) million compared to $(343.6) million in 2025.

Guidance and Future Outlook:

• Free cash flow for the fourth quarter of 2026 is expected to be in the range of $(80) million to $(90) million.
• First glide flight with the lead spaceship, Apeiron, is expected in January 2027.
• First commercial spaceflight is expected in early Q2 2027.
• The second spaceship is expected to begin commercial spaceflight in late Q2 or early Q3 2027.
• A new high-cadence launch hangar and fueling infrastructure is planned to open in the second half of 2028, expected to increase spaceflight capacity by 20% to 150 spaceflights per year.
• Management anticipates near-term growth projects will increase capacity from the initial fleet to 150 spaceflights per year by the end of 2028.

Business Segments and Product Lines:

• Construction of the rocket motor production facility within the Spaceship Factory in Arizona has been completed, with final occupancy approval pending and assembly-line production preparations underway.
• Spaceship Apeiron has arrived at Spaceport America, shifting focus to operational readiness, flight testing, and the launch of commercial spaceflight.
• Limited availability of Spaceflight Expedition bookings has been opened at $850,000 per seat.
• Over 100 astronauts have begun preparations for upcoming spaceflights.

Market and Competitive Landscape:

• The company is advancing a long-term vision of opening space to millions for extraordinary purposes through a scalable spaceline operating model.
• The fleet consists of reusable, air-launched Spaceships designed to make spaceflight safe, repeatable, and operationally efficient.

Risks and Challenges:

• Forward-looking statements are subject to substantial uncertainty, including potential delays in future commercial flights, the ability to successfully develop and test next-generation vehicles, and associated time and costs.
• Risks include expected capital requirements and the availability of additional financing.
• Actual results may differ materially from forward-looking statements due to factors detailed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Management Commentary and Tone:

• CEO Michael Colglazier stated that Spaceship Apeiron's arrival shifts the company's focus toward operational readiness as they prepare for flight test and the launch of commercial spaceflight.
• Management expressed confidence that the second spaceship is on track to join Apeiron and Eve in late Q2/early Q3 2027.
• The tone indicates a transition from development to operational readiness and the initiation of near-term growth projects.

Other Key Points:

• The company hosted a conference call on November 12, 2026, to discuss the results.
• A gain on extinguishment of debt of $8.6 million was recorded in the nine months ended September 30, 2026.
• Proceeds from the issuance of common stock pursuant to an at-the-market offering totaled $145.0 million for the nine months ended September 30, 2026.
• Payments of long-term debt totaled $11.2 million for the nine months ended September 30, 2026.
• Customer deposits increased to $80.5 million as of September 30, 2026, from $78.5 million as of December 31, 2025.
• Total liabilities decreased to $403.5 million as of September 30, 2026, from $529.2 million as of December 31, 2025.