Virgin Galactic Holdings (SPCE) on Thursday reaffirmed its 2026 roadmap, targeting third-quarter flight tests for its new SpaceShip and a return to commercial spaceflights in the fourth quarter. The update provides a key milestone for investors, but comes alongside a cautionary note on liquidity.
The company reported a net loss of $64.7 million for the first quarter ended March 31, an improvement from the $84.5 million loss in the same period last year. Revenue slipped to $0.2 million from $0.5 million, reflecting lower access fees from future astronauts.
Adjusted EBITDA losses narrowed to $54.8 million from $72.2 million a year earlier, while free cash flow improved to negative $93.3 million from negative $122.0 million. For the second quarter, Virgin Galactic guided for free cash flow in the range of negative $87 million to negative $92 million, with further sequential gains expected later in 2026.
Despite the narrowing losses, management flagged in its quarterly filing that its cash outlook—excluding future revenue, market fundraising, or potential debt changes—raises “substantial doubt” about the company’s ability to continue as a going concern for the next 12 months. The company has been relying on equity sales to bridge its cash needs.
Virgin Galactic raised $11 million in gross proceeds through its at-the-market (ATM) share sale program in the first quarter, followed by an additional $52 million in April. The company still has about $87 million of capacity remaining under the program. In a separate SEC filing Thursday, it registered roughly $40.2 million of unsold securities, replacing an expiring 2023 registration statement.
To manage debt, Virgin Galactic issued a notice on April 30 to redeem up to $10 million of its 2028 notes, with the redemption to be settled in common shares. The notes carry a 9.80% annual interest rate and are secured by liens on substantially all assets of the company and its U.S. subsidiaries.
CEO Michael Colglazier said the company has moved its first new SpaceShip from the assembly hangar into the test-and-launch hangar, with ground tests now underway. Flight tests remain on track for the third quarter, with commercial spaceflights expected to begin in the fourth quarter. The first commercial mission will be a research flight, followed by private astronaut trips six to eight weeks later.
Meanwhile, Virgin Galactic is advancing work on a second SpaceShip and has begun construction of a rocket-motor production line at its Arizona facility. The company also noted that its static test article for ground stress testing is being assembled.
During an earnings call, CFO Doug Ahrens described the ATM program as a bridge through the pre-commercial phase, with a reduction in such financing dependent on reaching a steadier operational footing. TD Cowen analyst Oliver Chen pressed management on how SpaceX and the broader commercial space sector are drawing investor attention. Colglazier called “space a big idea” and highlighted potential government and research applications for Virgin Galactic’s vehicles.
Shares of Virgin Galactic closed at $2.88 on Thursday, little changed on the day, after trading between $2.72 and $3.06 on the New York Stock Exchange. The company’s GAAP loss per share came in at $0.81, better than the $1.00 estimate predicted by Polymarket odds.
