Virgin Galactic Reports 77% Revenue Decline in Q3, But 66% Increase in Nine-Month Revenue

Virgin Galactic Holdings, Inc. reported its financial results for the three and nine months ended September 30, 2024, highlighting significant changes in revenue, expenses, and overall financial position compared to the previous fiscal period.

For the third quarter of 2024, Virgin Galactic generated revenue of $402,000, a substantial decrease of 77% from $1,728,000 in the same period of 2023. However, for the nine months ended September 30, 2024, revenue increased by 66% to $6,607,000, compared to $3,991,000 in the prior year. This increase in nine-month revenue reflects the company's ongoing efforts to ramp up its commercial spaceflight operations.

Total operating expenses for the third quarter of 2024 were $82,130,000, down from $116,000,000 in the third quarter of 2023. The operating loss for the quarter was $(81,728,000), an improvement from $(114,272,000) year-over-year. For the nine-month period, the operating loss was $(294,676,000), compared to $(417,244,000) in 2023, indicating a reduction in losses as the company streamlined operations.

Net loss for the third quarter of 2024 was $(74,540,000), compared to $(104,604,000) in the same quarter of 2023. For the nine months, the net loss decreased to $(270,327,000) from $(398,353,000) in the previous year. The net loss per share for the third quarter was $(2.66), down from $(5.57) in 2023, and $(11.66) for the nine months, compared to $(25.20) in the prior year.

The company’s total current assets decreased to $713,245,000 as of September 30, 2024, from $950,829,000 at the end of 2023. Total assets also declined to $1,016,309,000 from $1,179,517,000. Conversely, total liabilities decreased to $650,317,000 from $674,041,000, while the accumulated deficit increased to $(2,396,459,000) from $(2,126,132,000).

Strategically, Virgin Galactic achieved technological feasibility for its initial spaceship, VSS Unity, and mothership, VMS Eve, in July 2023. The company has paused Unity spaceflights and plans to commence test flights of new Delta Class spaceships before resuming commercial service in 2026. A significant development includes the completion of a new manufacturing facility in Mesa, Arizona, with final assembly of Delta Class spaceships expected to begin in 2025.

Additionally, the company executed a 1-for-20 reverse stock split on June 14, 2024, to comply with NYSE listing requirements. Virgin Galactic also settled a lawsuit with Boeing and Aurora Flight Sciences in October 2024, which may positively impact its operational focus moving forward.