- First spaceflight with new Delta SpaceShip carrying research
payloads planned for summer 2026
- Private astronaut spaceflights planned for fall 2026
- Assembly of first Delta SpaceShip begins in March 2025
Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“Virgin Galactic”
or the "Company”) today announced its financial results for the
fourth quarter and full year ended December 31, 2024 and provided a
business update.
CEO Michael Colglazier said, "We are excited to share that our
first spaceflight with our new Delta SpaceShips is planned for
summer 2026. This first spaceflight will carry scientific research,
and we expect to begin private astronaut spaceflights in the fall
of 2026. We have made tremendous progress with the fabrication of
tools and parts, and assembly of the first SpaceShip begins next
month in Phoenix.”
Fourth Quarter 2024 Financial Highlights
- Cash position remains strong, with cash, cash equivalents and
marketable securities of $657 million as of December 31, 2024.
- Revenue of $0.4 million, compared to $2.8 million in the fourth
quarter of 2023, with the decrease driven by the pause in
commercial spaceflights to focus efforts on the production of the
Delta Class SpaceShips.
- GAAP total operating expenses of $82 million, compared to $117
million in the fourth quarter of 2023. Non-GAAP total operating
expenses of $72 million in the fourth quarter of 2024, compared to
$100 million in the fourth quarter of 2023.
- Net loss of $76 million, compared to a $104 million net loss in
the fourth quarter of 2023, with the improvement primarily driven
by lower operating expenses.
- Adjusted EBITDA totaled $(63) million, compared to $(84)
million in the fourth quarter of 2023, primarily driven by lower
operating expenses.
- Net cash used in operating activities totaled $81 million,
compared to $95 million in the fourth quarter of 2023.
- Cash paid for capital expenditures totaled $36 million,
compared to $18 million in the fourth quarter of 2023.
- Free cash flow totaled $(117) million, compared to $(114)
million in the fourth quarter of 2023.
- Generated $29 million in gross proceeds through the issuance of
4.1 million shares of common stock as part of the Company's
at-the-market offering program.
Full Year 2024 Financial Highlights
- Revenue of $7 million for each of the years ended December 31,
2024 and 2023, which was primarily attributable to commercial
spaceflights and memberships fees related to future
astronauts.
- GAAP total operating expenses of $384 million, compared to $538
million in 2023. Non-GAAP total operating expenses of $338 million,
compared to $476 million in 2023.
- Net loss of $347 million, compared to a $502 million net loss
in 2023, with the improvement primarily driven by lower operating
expenses.
- Adjusted EBITDA totaled $(289) million, compared to $(427)
million in 2023, with the improvement primarily driven by lower
operating expenses.
- Net cash used in operating activities totaled $353 million,
compared to $448 million in 2023.
- Cash paid for capital expenditures totaled $122 million,
compared to $44 million in 2023.
- Free cash flow totaled $(475) million, compared to $(493)
million in 2023.
- Generated $138 million in gross proceeds through the issuance
of 12.9 million shares of common stock as part of the Company's
at-the-market offering programs.
Business Updates
- Production schedule for Delta Class SpaceShips remains on track
for commercial service in 2026.
- Contract executed with Redwire for the design and production of
next-generation SpaceShip research payload lockers.
- SpaceShip Factory completes on-boarding of team and begins
assembly of first SpaceShip in March 2025.
- Work advances on feasibility study with Italy's civil aviation
authority for potential second spaceport.
Financial Guidance
The following forward-looking statements reflect our
expectations for the first quarter of 2025 as of February 26, 2025
and are subject to substantial uncertainty. Our results are based
on assumptions that we believe to be reasonable as of this date,
but may be materially affected by many factors, as discussed below
in “Forward-Looking Statements.”
- Free cash flow for the first quarter of 2025 is expected to be
in the range of $(115) million to $(125) million.
Non-GAAP Financial Measures
In addition to the Company's results prepared in accordance with
generally accepted accounting principles in the United States
(GAAP), the Company is also providing certain non-GAAP financial
measures. A discussion regarding the use of non-GAAP financial
measures and a reconciliation of such measures to the most directly
comparable GAAP information is presented later in this press
release.
Conference Call Information
Virgin Galactic will host a conference call to discuss the
results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) today.
To access the conference call, parties should dial +1 800-715-9871
or +1 646-307-1963 and enter the conference ID number 9301433. The
live audio webcast along with supplemental information will be
accessible on the Company’s Investor Relations website at
https://investors.virgingalactic.com/events-and-presentations/. A
recording of the webcast will also be available following the
conference call.
About Virgin Galactic Holdings
Virgin Galactic is an aerospace and space travel company,
pioneering human-first spaceflight for private individuals and
researchers with its advanced air and space vehicles. Scale and
profitability are driven by next-generation vehicles capable of
bringing humans to space at an unprecedented frequency with an
industry-leading cost structure. You can find more information at
https://www.virgingalactic.com/.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. We intend such forward-looking statements to be covered by
the safe harbor provisions for forward-looking statements contained
in Section 27A of the Securities Act of 1933, as amended (the
“Securities Act”) and Section 21E of the Securities Exchange Act of
1934, as amended (the “Exchange Act”). All statements contained in
this press release other than statements of historical fact,
including, without limitation, statements regarding our spaceflight
systems, development, production and design of our Delta Class
spaceships and proposed timeline for assembly and commercial
service using such spaceships, our plans to advance design work on
our next-generation SpaceShip launch vehicle, the acceleration of
our next phase of growth, our plans to begin major parts delivery
and assembly at our Phoenix-Mesa spaceship factory, our plans to
work with Italy's civil aviation authority in connection with a
potential second spaceport, and our objectives for future
operations, growth plans and the Company’s financial forecasts,
including first quarter 2025 expected free cash flow, are
forward-looking statements. The words “believe,” “may,” “will,”
“estimate,” “potential,” “continue,” “anticipate,” “intend,”
“expect,” “strategy,” “future,” “could,” “would,” “project,”
“plan,” “target,” and similar expressions are intended to identify
forward-looking statements, though not all forward-looking
statements use these words or expressions. These statements are
neither promises nor guarantees, but involve known and unknown
risks, uncertainties and other important factors that may cause our
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements, including
but not limited to any delay in future commercial flights of our
spaceflight fleet, our ability to successfully develop and test our
next generation vehicles, and the time and costs associated with
doing so, our expected capital requirements and the availability of
additional financing, and the other factors, risks and
uncertainties included in our Annual Report on Form 10-K for the
fiscal year ended December 31, 2024, as such factors may be updated
from time to time in our other filings with the Securities and
Exchange Commission (the "SEC"), accessible on the SEC’s website at
www.sec.gov and the Investor Relations section of our website at
www.virgingalactic.com, which could cause our actual results to
differ materially from those indicated by the forward-looking
statements made in this press release. Any such forward-looking
statements represent management’s estimates as of the date of this
press release. While we may elect to update such forward-looking
statements at some point in the future, we disclaim any obligation
to do so, even if subsequent events cause our views to change.
Fourth Quarter 2024 Financial Results
VIRGIN GALACTIC HOLDINGS,
INC. Condensed Consolidated Statements of Operations and
Comprehensive Loss (In thousands, except per share amounts)
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
Revenue
$
429
$
2,809
$
7,036
$
6,800
Operating expenses:
Spaceline operations
20,271
24,338
90,024
50,538
Research and development
28,237
53,848
152,678
295,140
Selling, general and administrative
29,703
30,844
125,496
174,864
Depreciation and amortization
4,171
3,646
15,467
13,369
Special charges
—
4,398
—
4,398
Total operating expenses
82,382
117,074
383,665
538,309
Operating loss
(81,953
)
(114,265
)
(376,629
)
(531,509
)
Interest income
8,573
13,644
42,352
42,234
Interest expense
(3,237
)
(3,224
)
(12,927
)
(12,872
)
Other income, net
59
99
538
263
Loss before income taxes
(76,558
)
(103,746
)
(346,666
)
(501,884
)
Income tax expense (benefit)
(145
)
238
74
453
Net loss
(76,413
)
(103,984
)
(346,740
)
(502,337
)
Other comprehensive income (loss):
Foreign currency translation
adjustment
(25
)
72
—
81
Unrealized gain (loss) on marketable
securities
(939
)
1,608
(93
)
7,616
Total comprehensive loss
$
(77,377
)
$
(102,304
)
$
(346,833
)
$
(494,640
)
Net loss per share:
Basic and diluted
$
(2.53
)
$
(5.20
)
$
(13.89
)
$
(29.79
)
Weighted-average shares outstanding:
Basic and diluted
30,254
19,988
24,955
16,863
VIRGIN GALACTIC HOLDINGS,
INC. Condensed Consolidated Balance Sheets (In
thousands)
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
178,605
$
216,799
Restricted cash
32,280
36,793
Marketable securities, short-term
384,621
657,238
Other current assets
32,430
39,999
Total current assets
627,936
950,829
Marketable securities, long-term
61,280
71,596
Property, plant and equipment, net
209,114
93,806
Other non-current assets
62,895
63,286
Total assets
$
961,225
$
1,179,517
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable
$
3,696
$
32,415
Customer deposits
84,493
97,841
Other current liabilities
61,821
55,404
Total current liabilities
150,010
185,660
Non-current liabilities:
Convertible senior notes, net
420,120
417,886
Other long-term liabilities
68,815
70,495
Total liabilities
638,945
674,041
Stockholders' Equity
Common stock
3
2
Additional paid-in capital
2,794,871
2,631,235
Accumulated deficit
(2,472,872
)
(2,126,132
)
Accumulated other comprehensive income
278
371
Total stockholders' equity
322,280
505,476
Total liabilities and stockholders'
equity
$
961,225
$
1,179,517
VIRGIN GALACTIC HOLDINGS,
INC. Condensed Consolidated Statements of Cash Flows (In
thousands)
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
Cash flows from operating activities:
Net loss
$
(76,413
)
$
(103,984
)
$
(346,740
)
$
(502,337
)
Stock-based compensation
5,712
8,660
29,752
44,258
Depreciation and amortization
4,171
3,646
15,467
13,369
Amortization of debt issuance costs
565
548
2,234
2,166
Accretion of marketable securities
purchased at a discount
(2,673
)
(7,077
)
(16,635
)
(15,085
)
Other non-cash items
827
1
1,457
1,509
Change in operating assets and
liabilities:
Other current and non-current assets
(3,058
)
2,262
10,566
16,555
Accounts payable
(3,839
)
(394
)
(29,203
)
8,625
Customer deposits
(1,647
)
(82
)
(13,348
)
(4,806
)
Other current and non-current
liabilities
(4,680
)
1,111
(6,253
)
(12,447
)
Net cash used in operating activities
(81,035
)
(95,309
)
(352,703
)
(448,193
)
Cash flows from investing activities:
Capital expenditures
(35,709
)
(18,368
)
(121,855
)
(44,309
)
Purchases of marketable securities
(16,073
)
(136,886
)
(543,434
)
(1,009,836
)
Proceeds from maturities and calls of
marketable securities
110,982
235,526
840,335
937,872
Other investing activities
12
—
610
—
Net cash provided by (used in) investing
activities
59,212
80,272
175,656
(116,273
)
Cash flows from financing activities:
Payments of finance lease obligations
(44
)
(60
)
(193
)
(235
)
Proceeds from issuance of common stock
29,098
—
137,796
484,145
Withholding taxes paid on behalf of
employees on net settled stock-based awards
(54
)
(239
)
(1,207
)
(3,240
)
Transaction costs related to issuance of
common stock
(1,008
)
(133
)
(2,054
)
(5,239
)
Other financing activities
—
—
(2
)
—
Net cash provided by (used in) financing
activities
27,992
(432
)
134,340
475,431
Net increase (decrease) in cash, cash
equivalents and restricted cash
6,169
(15,469
)
(42,707
)
(89,035
)
Cash, cash equivalents and restricted cash
at beginning of period
204,716
269,061
253,592
342,627
Cash, cash equivalents and restricted cash
at end of period
$
210,885
$
253,592
$
210,885
$
253,592
Cash and cash equivalents
$
178,605
$
216,799
$
178,605
$
216,799
Restricted cash
32,280
36,793
32,280
36,793
Cash, cash equivalents and restricted
cash
$
210,885
$
253,592
$
210,885
$
253,592
USE OF NON-GAAP FINANCIAL MEASURES
This press release references certain financial measures that
are not prepared in accordance with GAAP, including non-GAAP total
operating expenses, Adjusted EBITDA and free cash flow. The Company
defines non-GAAP total operating expenses as total operating
expenses other than stock-based compensation, depreciation and
amortization and certain other items the Company believes are not
indicative of its core operating performance. The Company defines
Adjusted EBITDA as earnings before interest expense, income taxes,
depreciation and amortization, stock-based compensation, and
certain other items the Company believes are not indicative of its
core operating performance. The Company defines free cash flow as
net cash provided by operating activities less capital
expenditures. None of these non-GAAP financial measures is a
substitute for or superior to measures prepared in accordance with
GAAP and should not be considered as an alternative to any other
measures derived in accordance with GAAP.
The Company believes that presenting these non-GAAP financial
measures provides useful supplemental information to investors
about the Company in understanding and evaluating its operating
results, enhancing the overall understanding of its past
performance and future prospects, and allowing for greater
transparency with respect to key financial metrics used by its
management in financial and operational-decision making. However,
there are a number of limitations related to the use of non-GAAP
measures and their nearest GAAP equivalents. For example, other
companies may calculate non-GAAP measures differently, or may use
other measures to calculate their financial performance, and
therefore any non-GAAP measures the Company uses may not be
directly comparable to similarly titled measures of other
companies.
A reconciliation of total operating expenses to non-GAAP total
operating expenses for the three months ended December 31, 2024 and
2023 and years ended December 31, 2024 and 2023, respectively, is
set forth below (in thousands):
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
Total operating expenses
$
82,382
$
117,074
$
383,665
$
538,309
Stock-based compensation
5,712
8,660
29,752
44,258
Depreciation and amortization
4,171
3,646
15,467
13,369
Special charges(1)
—
4,398
—
4,398
Non-GAAP total operating expenses
$
72,499
$
100,370
$
338,446
$
476,284
(1) Special charges includes severance and related benefit costs
in connection with the Company's workforce reduction.
A reconciliation of net loss to Adjusted EBITDA for the three
months ended December 31, 2024 and 2023 and years ended December
31, 2024 and 2023, respectively, is set forth below (in
thousands):
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
Net loss
$
(76,413
)
$
(103,984
)
$
(346,740
)
$
(502,337
)
Interest expense
3,237
3,224
12,927
12,872
Income tax expense (benefit)
(145
)
238
74
453
Depreciation and amortization
4,171
3,646
15,467
13,369
Stock-based compensation
5,712
8,660
29,752
44,258
Special charges(1)
—
4,398
—
4,398
Adjusted EBITDA
$
(63,438
)
$
(83,818
)
$
(288,520
)
$
(426,987
)
(1) Special charges includes severance and related benefit costs
in connection with the Company's workforce reduction.
The following table reconciles net cash used in operating
activities to free cash flow for the three months ended December
31, 2024 and 2023 and years ended December 31, 2024 and 2023,
respectively (in thousands):
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Net cash used in operating activities
$
(81,035
)
$
(95,309
)
$
(352,703
)
$
(448,193
)
Capital expenditures
(35,709
)
(18,368
)
(121,855
)
(44,309
)
Free cash flow
$
(116,744
)
$
(113,677
)
$
(474,558
)
$
(492,502
)
The Company has not provided a reconciliation of forward-looking
free cash flow to the most directly comparable GAAP financial
measures because such a reconciliation is not available without
unreasonable efforts, due to the variability of these items and the
fact that there is substantial uncertainty associated with
predicting any future adjustments that we may make to our GAAP
financial measures in calculating our non-GAAP financial
measures.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250226106834/en/
For media inquiries: Aleanna Crane - Vice President,
Communications news@virgingalactic.com 575.800.4422 For investor
inquiries: Eric Cerny - Vice President, Investor Relations
vg-ir@virgingalactic.com 949.774.7637
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