Earnings

Virgin Galactic quarterly loss widens while company preps for spaceflight return

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An aerial view of carrier aircraft VMS Eve, left, and spacecraft VSS Unity, at Spaceport America in New Mexico on Feb. 27, 2023.
Virgin Galactic

Virgin Galactic is aiming to fly its first spaceflight in nearly two years later this month, but the company’s first quarter loss widened dramatically as it funds its fleet growth.

For the quarter ended March 31, Virgin Galactic posted a net loss of $159.4 million, or 57 cents a share, compared with a loss of $93.1 million, or 36 cents a share, a year earlier.

Virgin Galactic had cash and securities totaling $874 million at the end of the quarter, down from about $980 million at the end of the fourth quarter. It reported minimal revenue.

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Virgin Galactic cited “increases in research and development expenses,” in a press release. CEO Michael Colglazier said the company is “making steady progress on the development of our Delta Class spaceships.”

The company is preparing to launch its VSS Unity spacecraft for the first time since flying Sir Richard Branson in July 2021. The next spaceflight, scheduled for the end of May, will carry a crew of company employees on a mission to verify its work. It paused launches for a lengthy refurbishment period of its vehicles, with Virgin Galactic aiming to fly its first commercial mission in “late June.”

The space tourism company reported an adjusted EBITDA loss of $140 million, compared with a $77 million loss in the same period a year ago.

Shares of Virgin Galactic stock slipped more than 1% in after-hours trading, from its close at $4.09 a share. The stock is up about 17% since this beginning of the year.

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