ORANGE COUNTY, California, May 14, 2026, 16:05 (PDT)
- Virgin Galactic is sticking with its 2026 goals: Q3 flight tests and commercial spaceflights in Q4 remain on the schedule.
- First-quarter results showed the company swung to a net loss of $64.7 million, while revenue came in at just about $0.2 million.
- New filings point to additional equity fundraising, shares used to pay down debt, and a warning over the company’s ability to keep operating.
Virgin Galactic Holdings on Thursday reiterated its schedule, sticking with third-quarter flight tests for its new SpaceShip and eyes set on resuming spaceflights in the fourth. That keeps its 2026 goal in play—a key milestone for investors. Alongside the timeline update, the company reported a slimmer first-quarter loss. But the story wasn’t all positive: more shares hit the market and management flagged renewed liquidity concerns.
Timing is critical here: Virgin Galactic describes itself as stuck in a pre-commercial service phase. There’s no income yet from spaceflights, but spending continues on new ships and launch facilities. In its latest quarterly filing, the company’s management said its cash outlook—factoring out any future revenue, market fundraising, or unpredictable debt changes—raises “substantial doubt” about whether operations can last another 12 months. SEC
Virgin Galactic shares (SPCE) hovered at $2.88 late in the U.S. session—unchanged from the prior close. The stock swung between $2.72 and $3.06 earlier in the day on the New York Stock Exchange.
Virgin Galactic posted revenue of $0.2 million for the March 31 quarter, slipping from $0.5 million a year ago as access fees from future astronauts slowed. The company trimmed its net loss to $64.7 million, compared with $84.5 million, reflecting reduced operating expenses. Adjusted EBITDA—stripping out interest, taxes, depreciation and amortization—also saw an improvement, with losses narrowing to $54.8 million from $72.2 million.
Cash burn is still running high. Free cash flow landed at negative $93.3 million for the quarter—an improvement from last year’s negative $122.0 million, but still deep in the red. Virgin Galactic is guiding for second-quarter free cash flow between negative $87 million and negative $92 million, and management expects further sequential gains sometime in 2026.
Virgin Galactic CEO Michael Colglazier said the company has shifted its first new SpaceShip from the assembly hangar into the test-and-launch hangar, with ground tests now underway. According to Colglazier, flight tests are still slated for the third quarter, and the company expects to begin spaceflights in the fourth.
The company noted that its static test article—built for ground stress testing—is now being assembled, while work on a second SpaceShip has begun. At the Arizona facility, rocket-motor production line construction is underway.
Virgin Galactic has leaned on equity sales to keep cash flowing. In the first quarter, it pulled in $11 million in gross proceeds through its at-the-market share sale program. Another $52 million followed in April, according to the company, which says it still has about $87 million of capacity left under the program.
In a Thursday filing with the SEC, Virgin Galactic registered roughly $40.2 million of unsold securities still available through its at-the-market program. This replaces its expiring 2023 registration statement; no additional securities are being offered beyond the existing amount. The document covers common shares, preferred stock, debt, warrants and other types of securities. Virgin Galactic’s common stock last traded at $2.88 on May 13.
Virgin Galactic is turning to stock to pay down debt. According to its latest quarterly filing, the company sent out a notice on April 30 to redeem as much as $10 million of its 2028 notes on May 18. The redemption will be settled in common shares, calculated based on a volume-weighted average price.
Virgin Galactic’s borrowing isn’t cheap for a business yet to report revenue. Its 2028 notes come with a 9.80% yearly interest rate, backed by liens on nearly all assets and those of its U.S. subsidiaries—except for standard carve-outs, the filing shows.
CFO Doug Ahrens told the call the at-the-market program gave the company a bridge through the transition phase ahead of kicking off commercial service. According to Ahrens, dialing back on this kind of financing will depend on when operations reach a steadier footing.
The landscape goes well beyond just suborbital tourism. During the call, TD Cowen’s Oliver Chen pressed management on how SpaceX and the broader commercial space sector are drawing investor attention. Colglazier responded, calling “space a big idea” and noting the sector’s growing momentum. He also flagged possible government and research applications for Virgin Galactic’s vehicles. Investing.com
Prediction-market action focused narrowly on earnings. According to a TipRanks note out before the numbers, Polymarket odds put Virgin Galactic’s chances at 65% for topping a GAAP loss estimate of $1.00 a share. The actual result: a GAAP loss of $0.81 per share.
Delays could derail the timeline, extend the certification process, or increase cash burn beyond Virgin Galactic’s projections. According to the company’s filing, the inaugural commercial spaceflight—a research mission—is set for the fourth quarter, with private astronaut trips targeted six to eight weeks later. If things slip, that means a longer reliance on outside financing and share-backed debt.
