SPCE Earnings: Virgin Galactic Stock Soars on Big EPS and Revenue Beats

Shares of Virgin Galactic (SPCE) soared in after-hours trading after the aerospace company reported earnings for its first quarter of Fiscal Year 2025. Earnings per share came in at -$2.38, which beat analysts’ consensus estimate of -$2.68 per share. In addition, sales fell by 77% year-over-year, with revenue hitting $460,000. Still, this beat estimates of $286,000.

Virgin Galactic’s Outlook

Looking forward, management expects Q2 2025 free cash flow to land between -$115 million and -$105 million. Although SPCE expects to continue burning cash, CEO Michael Colglazier reaffirmed that the company’s first spaceflight using its new Delta SpaceShips is slated for summer 2026, with a payload of scientific research. The company also plans to launch private astronaut spaceflights shortly after, starting in fall 2026. Indeed, it expects future astronaut sales to open in Q1 of 2026.

However, it is easy to wonder if SPCE can scale quickly enough to actually achieve this goal and if there is even enough long-term demand to keep the business alive. In addition, bears are likely concerned about the company’s low revenue levels relative to the amount of cash it is burning. Usually, investors are willing to overlook losses if a business’ revenue is growing extremely fast on both a percentage and absolute basis. However, both requirements aren’t being satisfied at SPCE, as revenue came in below $1 million.

Is SPCE Stock a Good Buy?

Turning to Wall Street, analysts have a Hold consensus rating on SPCE stock based on one Buy and three Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average SPCE price target of $14.58 per share implies 330% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.

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