tiprankstipranks
Trending News
More News >
Virgin Galactic Holdings (SPCE)
NYSE:SPCE
Advertisement

Virgin Galactic Holdings (SPCE) AI Stock Analysis

Compare
10,226 Followers

Top Page

SPCE

Virgin Galactic Holdings

(NYSE:SPCE)

Select Model
Select Model
Select Model
Neutral 49 (OpenAI - 4o)
Rating:49Neutral
Price Target:
$3.50
▼(-6.42% Downside)
Virgin Galactic's overall stock score is primarily impacted by its weak financial performance, characterized by persistent losses and high leverage. Technical analysis provides some positive signals, but the valuation remains unattractive due to negative earnings. The earnings call highlights both progress and challenges, with significant delays and cash flow issues. The company's strategic focus on cost management and future growth is promising, but immediate financial and operational hurdles weigh heavily on the score.
Positive Factors
Strong Cash Position
A strong cash position provides financial stability and flexibility, allowing the company to invest in growth initiatives and weather operational challenges.
Reduction in Operating Expenses
Effective cost management enhances profitability potential and supports sustainable operations, crucial for long-term financial health.
Launch Vehicle Design Progress
Advancements in launch vehicle design can open new revenue streams and strengthen market position, supporting future growth.
Negative Factors
Delay in Fuselage Schedule
Delays in project timelines can hinder revenue generation and impact market credibility, challenging long-term growth prospects.
Free Cash Flow Remains Negative
Continued negative cash flow indicates financial strain, limiting the ability to fund operations and invest in growth without external financing.
Rising Financial Leverage
High leverage increases financial risk, potentially leading to liquidity issues and constraining strategic flexibility in adverse conditions.

Virgin Galactic Holdings (SPCE) vs. SPDR S&P 500 ETF (SPY)

Virgin Galactic Holdings Business Overview & Revenue Model

Company DescriptionVirgin Galactic Holdings, Inc. focuses on the development, manufacture, and operation of spaceships and related technologies for conducting commercial human spaceflight and flying commercial research and development payloads into space. It is also involved in the ground and flight testing, and post-flight maintenance of its spaceflight system vehicles. The company serves private individuals, researchers, and government agencies. Virgin Galactic Holdings, Inc. was founded in 2017 is headquartered in Las Cruces, New Mexico. Virgin Galactic Holdings, Inc. was a former subsidiary of Virgin Orbit Holdings, Inc.
How the Company Makes MoneyVirgin Galactic generates revenue primarily through the sale of tickets for its suborbital spaceflights, targeting wealthy individuals, researchers, and commercial entities interested in unique space experiences. The company offers a premium experience, with ticket prices initially set at around $250,000 per seat. Additional revenue streams may include partnerships with research organizations and universities for conducting scientific experiments during flights, as well as potential collaborations with other aerospace companies and government agencies. The company's earnings are also influenced by its ability to scale operations, attract customers, and successfully complete test flights leading to commercial operations.

Virgin Galactic Holdings Key Performance Indicators (KPIs)

Any
Any
Operating Expense Breakdown
Operating Expense Breakdown
Details core costs like R&D, marketing, and admin, offering insight into how efficiently Virgin Galactic runs and where it’s prioritizing investment, crucial for understanding its path to profitability and strategic focus in the emerging space tourism industry.
Chart InsightsVirgin Galactic's operating expenses have notably decreased, particularly in research and development, reflecting a strategic pivot towards capital investments. This aligns with the earnings call's highlight of a 21% reduction in operating expenses and increased capital expenditures. The company is leveraging its strong cash position to advance SpaceShip production and explore new revenue streams, despite remaining in a pre-revenue phase. The focus on cost management and strategic advancements indicates a disciplined approach to future growth, even as they face logistical challenges and negative free cash flow.
Data provided by:Main Street Data

Virgin Galactic Holdings Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative elements. While there are significant advancements in spaceship development and financial management, delays in project timelines and continued negative cash flow indicate challenges. The company is managing expenses well and preparing for future growth, but immediate financial hurdles and project delays remain concerns.
Q2-2025 Updates
Positive Updates
Progress in Spaceship Program
Significant advancements in next-generation human spaceflight vehicles with key components like oxidizer tanks and propulsion systems qualified for flight.
Strong Cash Position
Virgin Galactic maintains over $0.5 billion in cash, cash equivalents, and marketable securities, demonstrating a strong balance sheet.
Reduction in Operating Expenses
Total operating expenses decreased by 34% year-over-year, indicating effective management of costs.
Improved Adjusted EBITDA
Adjusted EBITDA improved by 34% from the previous year and 28% sequentially, showing progress toward financial efficiency.
Launch Vehicle Design Progress
Design work on the next-generation launch vehicle, LV-X, is advancing, with potential government applications being explored.
Negative Updates
Delay in Fuselage Schedule
Fuselage schedule has slipped, pushing the first research spaceflight to fall 2026, impacting the timeline.
Free Cash Flow Remains Negative
Free cash flow was negative $114 million in Q2, though within guidance, it represents continued cash burn.
Headcount Reduction
Reduction of contract engineering workforce by 85% and overall company headcount by 7% due to lower demand for resources.
Company Guidance
In the Virgin Galactic Second Quarter 2025 Earnings Conference Call, the company provided guidance on several key metrics. It was highlighted that Virgin Galactic is on track to launch its commercial spaceflight business in 2026, with research and private astronaut flights expected to commence in the fall of that year. The company is managing its business prudently, maintaining over $508 million in cash, cash equivalents, and marketable securities. Operating expenses for the second quarter decreased by 34% compared to the previous year, and adjusted EBITDA improved by 34% year-over-year to negative $52 million. The free cash flow was negative $114 million, a 7% improvement from the first quarter. Looking forward, the company expects its quarterly cash spending to continue decreasing, with forecasted free cash flow for the third quarter of 2025 ranging from negative $100 million to $110 million. Additionally, Virgin Galactic plans to reopen ticket sales in the first quarter of 2026 and is advancing the design of its LV-X launch vehicle as part of its long-term growth strategy.

Virgin Galactic Holdings Financial Statement Overview

Summary
Virgin Galactic Holdings is facing significant financial challenges across all verticals. The income statement reflects persistent losses and declining revenue, while the balance sheet shows increasing leverage and negative returns on equity. Cash flow metrics highlight ongoing cash outflows and inefficiencies in converting profits to cash. The company needs to address its operational inefficiencies and financial leverage to improve its financial health and stability.
Income Statement
20
Very Negative
Virgin Galactic Holdings has been experiencing significant challenges in its income statement. The company shows negative gross profit margins, indicating that the cost of goods sold exceeds revenue. The net profit margin is also deeply negative, reflecting substantial losses. Revenue growth has been inconsistent, with a notable decline in the TTM period. The EBIT and EBITDA margins are negative, highlighting operational inefficiencies and high operating costs relative to revenue.
Balance Sheet
35
Negative
The balance sheet reveals a high debt-to-equity ratio, which has increased over time, indicating rising financial leverage and potential risk. The return on equity is negative, suggesting that the company is not generating profits from its equity base. The equity ratio is relatively low, reflecting a higher proportion of debt in the capital structure. These factors point to financial instability and potential liquidity concerns.
Cash Flow
25
Negative
Cash flow analysis shows negative operating and free cash flows, indicating cash outflows from operations and investments. The free cash flow growth rate is slightly positive in the TTM period, but overall cash flow metrics are concerning. The operating cash flow to net income ratio is negative, suggesting that the company is not converting its accounting profits into cash effectively. The free cash flow to net income ratio is positive, but this is primarily due to the large net losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.70M7.04M6.80M2.31M3.29M238.00K
Gross Profit-73.48M-82.99M-43.74M406.00K3.02M65.00K
EBITDA-272.89M-318.27M-475.64M-476.33M-341.28M-635.07M
Net Income-302.72M-346.74M-502.34M-500.15M-352.90M-273.04M
Balance Sheet
Total Assets898.82M961.23M1.18B1.14B1.07B803.99M
Cash, Cash Equivalents and Short-Term Investments499.51M563.23M874.04M909.01M603.90M665.92M
Total Debt483.22M420.12M417.89M415.72M42.48M27.52M
Total Liabilities635.44M638.95M674.04M659.72M174.57M141.47M
Stockholders Equity263.37M322.28M505.48M480.22M894.26M662.52M
Cash Flow
Free Cash Flow-470.48M-474.56M-492.50M-396.73M-235.40M-250.36M
Operating Cash Flow-291.71M-352.70M-448.19M-380.24M-230.76M-233.16M
Investing Cash Flow122.61M175.66M-116.27M-286.17M-387.52M-17.20M
Financing Cash Flow147.99M134.34M475.43M459.00M489.36M436.59M

Virgin Galactic Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.74
Price Trends
50DMA
3.42
Positive
100DMA
3.31
Positive
200DMA
3.82
Negative
Market Momentum
MACD
0.08
Negative
RSI
55.89
Neutral
STOCH
53.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPCE, the sentiment is Positive. The current price of 3.74 is above the 20-day moving average (MA) of 3.28, above the 50-day MA of 3.42, and below the 200-day MA of 3.82, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 55.89 is Neutral, neither overbought nor oversold. The STOCH value of 53.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPCE.

Virgin Galactic Holdings Risk Analysis

Virgin Galactic Holdings disclosed 59 risk factors in its most recent earnings report. Virgin Galactic Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Virgin Galactic Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
3.67B-39.42-20.76%11.33%35.92%
56
Neutral
1.34B-37.82-24.04%87.67%18.33%
49
Neutral
$215.39M-91.98%-84.19%55.27%
49
Neutral
6.26B-7.30-4.00%
42
Neutral
36.66M-0.52-74.46%-2.60%82.24%
25
Underperform
576.39M-0.50
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SPCE
Virgin Galactic Holdings
3.47
-2.56
-42.45%
EH
Ehang Holdings
18.59
4.74
34.22%
EVTL
Vertical Aerospace
5.66
-0.57
-9.15%
ACHR
Archer Aviation
9.33
6.41
219.52%
PL
Planet Labs PBC
11.96
9.75
441.18%
SIDU
Sidus Space, Inc. Class A
1.02
-1.75
-63.18%

Virgin Galactic Holdings Corporate Events

Regulatory Filings and ComplianceShareholder Meetings
Virgin Galactic Updates Bylaws for Modern Governance
Neutral
Aug 29, 2025

On August 28, 2025, Virgin Galactic Holdings, Inc. amended its by-laws to change voting standards, address universal proxy rules, and enhance procedural mechanics for stockholder meetings. These amendments aim to modernize governance practices and ensure compliance with regulatory requirements, potentially impacting shareholder engagement and corporate governance.

The most recent analyst rating on (SPCE) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Virgin Galactic Holdings stock, see the SPCE Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 24, 2025