Key Highlights

  • SPCE shares fell 3.75% pre-market today to $2.57 from a prior close of $2.67.
  • Third quarter Revenue was $427,000, above market estimates of $333,300.
  • The company announced a $250 million at-the-market Equity program.
  • First commercial spaceflight is expected in early second quarter 2027.

Virgin Galactic (NYSE:SPCE) shares slipped in pre-market today after the company reported third quarter results and outlined a new equity program. The stock was at $2.57, down 3.75% from the prior close of $2.67, which followed a 6.97% decline in the previous session.

Revenue was $427,000, ahead of market estimates of about $333,300, and the adjusted loss was $0.39 per share, narrower than the $0.44 loss the market expected. The company is in its pre-revenue phase.

Virgin Galactic is a Tustin, California-based aerospace and space travel company that designs, manufactures and operates reusable spaceflight systems for private individuals, researchers and government agencies.

Delta-Class Timeline Slips About Two Months on Integration Work

Management said the first Delta-class ship, Aperon, arrived at Spaceport America in late October. A first glide flight is expected in January, the first commercial spaceflight in early second quarter 2027, and the second ship is expected in service in late second quarter or early third quarter 2027. The roughly two-month delay stems from software-hardware integration.

A new high-cadence launch hangar, expected to be operational in the second half of 2028, would lift annual flights from 125 to 150 on the initial two-ship fleet. The company said it would add about $90 million of revenue and $75 million of contribution margin, with a payback period under one year.

More than 100 astronauts have moved into the readiness phase. Bookings have reopened at $850,000 per expedition, with prices expected to rise after this Tranche closes, and blended pricing is expected to reach $600,000 to $800,000 by 2028 as lower-priced early reservations fly.

$250 Million Program Targets Cash, Growth Projects and Debt

The at-the-market equity program is planned to provide about $100 million to bolster cash through the commercial ramp, $65 million to $70 million for growth initiatives, mainly the hangar and rocket production for government and defense, and about one-third to retire debt.

First Lien Debt is expected to fall to about $92 million, due December 31, 2028. A planned exchange of 2027 convertible notes for stock would retire more than $12 million of debt and leave about $5 million outstanding, bringing total debt below $100 million.

Fourth quarter revenue is guided to about $100,000 and free Cash Flow to negative $80 million to negative $90 million, with first quarter 2027 burn expected in a similar range. Positive free cash flow is forecast no later than the first quarter of 2028. The 52-week range runs from $2.13 to $8.90.

Funding Path and the January Glide Flight Frame the Next Milestones

The program gives the company a funding source while it targets positive free cash flow by early 2028, and sales under an at-the-market program add shares to the count over time. With the stock below $5, it trades as a penny stock, and the next markers are the January glide flight and the start of commercial service in early second quarter 2027.