ORANGE COUNTY, Calif., August 12, 2026, 19:46 EDT
- SPCE dropped 12.8% in after-hours trading to $2.89.
- The inaugural commercial spaceflight has been rescheduled from late 2026 to February 2027.
- The company expects to use between $175 million and $190 million of free cash flow in the second half.
Shares of Virgin Galactic Holdings, Inc. NYSE:SPCE declined 12.8% in after-hours trading on Wednesday. The slide came after the company announced a delay to a commercial flight and provided guidance indicating high cash burn.
Shares changed hands at $2.89 as of 19:36 EDT. Prior to the earnings release, the stock finished 0.8% above its previous close at $3.315. After-hours trading volume neared the typical daily average.
| SPCE trading measure | August 12 reading |
|---|---|
| Regular close | $3.315, rising 0.8% |
| After-hours price | $2.89 |
| After-hours move | Falling 12.8% |
| Regular-session volume | 16.4 million shares |
| 52-week range | $2.13 to $8.90 |
The first Delta spacecraft’s commercial operations are now scheduled for February 2027, after previously aiming for the fourth quarter of 2026 as announced in March. The company expects its second Delta ship to enter service in March 2027.
Demand proved strong. Chief Executive Michael Colglazier stated the $750,000 flight group was “oversubscribed and booked out ahead of schedule.” The reservations contributed over $50 million in projected future revenue.
That suggests a minimum of 67 seats. However, projected cash outflow for the second half is 3.5 to 3.8 times the value of bookings. Bookings do not represent immediate liquidity, and income will be realized only when flights occur.
| Demand and cash comparison | Amount | Investor reading |
|---|---|---|
| Anticipated additional revenue | More than $50 million | No fewer than 67 seats at $750,000 |
| Q3 free cash flow outlook | $(95) million to $(100) million | Company forecast |
| Q4 free cash flow outlook | $(80) million to $(90) million | Company forecast |
| Planned second-half spending | $(175) million to $(190) million | 3.5–3.8 times bookings |
Revenue for the second quarter declined to $134,000, down from $406,000. The net loss decreased by 17% to $55.9 million. Free cash flow outflow dropped 20% to $90.7 million.
| Second-quarter metric | 2026 | 2025 | Change |
|---|---|---|---|
| Revenue | $0.1 million | $0.4 million | Decreased 67% |
| Operating expenses | $65.1 million | $70.3 million | Reduced 7% |
| Net loss | $(55.9) million | $(67.3) million | Loss narrowed 17% |
| Free cash flow | $(90.7) million | $(113.7) million | Up 20% |
As of June 30, cash and marketable securities stood at $255.1 million, not counting $31.1 million in restricted cash. A basic initial projection suggests a year-end balance of $65 million to $80 million after factoring in the expected burn rate, with no additional financing or other cash activities assumed.
Some of the funding shortfall has been covered by new equity. Virgin Galactic sold 41.0 million shares in the quarter, bringing in $134.1 million before expenses. The average sale price was approximately $3.27 per share.
| Capital measure | December 31, 2025 | June 30, 2026 | Change |
|---|---|---|---|
| Shares outstanding | 73.3 million | 141.3 million | Increase of 92.7% |
| Cash and marketable securities | $307.0 million | $255.1 million | Decrease of 16.9% |
| Total debt | $324.2 million | $219.0 million | Decrease of 32.4% |
| Q2 ATM issuance | — | 41.0 million shares | Gross proceeds of $134.1 million |
The after-hours share price was 11.6% under the average from the issuance. The number of outstanding shares almost doubled over six months. While debt declined, dilution continues to be the cost of prolonging the runway.
Nasdaq’s market value closed at $444.3 million. By June, unrestricted cash and securities amounted to 57% of this total. As a result, investors are attributing little value to the incomplete flight system.
Wall Street showed restraint ahead of the latest postponement. MarketBeat’s consensus among five analysts stood at Hold, with an average price target of $3.43. This projection was just 3.5% higher than where shares closed on Wednesday.
| Analyst recommendation | Count |
|---|---|
| Strong Buy | 1 |
| Buy | 0 |
| Hold | 2 |
| Sell | 2 |
| Consensus / average target | Hold / $3.43 |
| Target range | $2.30 to $5.00 |
The operational stage of testing is now underway. Captive-carry flight tests are scheduled for October. If the program proceeds successfully, it could reduce schedule risk ahead of the planned commercial launch in February.
Management anticipates generating positive cash flow on a quarterly basis in 2027. Achieving this target relies on staying on schedule with flights and successfully turning reservations into revenue. The August update did not provide a specific quarter-by-quarter breakdown.
Risks: Additional delays in testing may increase cash requirements and lead to greater dilution. Quicker certification, increased bookings or reduced expenditures could extend the runway.
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