Virgin Galactic Holdings (SPCE) AI Stock Analysis

• Market Cap: $172.20M
• Dividend Yield: N/A
• Average Volume (3M): 4.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.57
• Revenue Growth: -84.19%
• EPS Growth: 55.27%
• Country: US
• Employees: 744
• Sector: Industrials
• Sector Strength: 83
• Industry: Aerospace & Defense
• EPS (TTM): -1.47
• Shares Outstanding: 57,590,965
• 10 Day Avg. Volume: 3,515,946
• 30 Day Avg. Volume: 4,061,653
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 63.78
• Enterprise Value/Gross Profit: -1.47
• Enterprise Value/Ebitda: -0.40
• 1Y Price Target: $4.04
• Price Target Upside: 33.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 43 Neutral
• Price Target: $3.00 ▼(-0.66% Downside)

Virgin Galactic Holdings faces substantial financial and operational challenges, reflected in its low financial performance score. Technical indicators suggest bearish momentum, and valuation metrics highlight ongoing losses. While the earnings call and corporate events show some positive developments, they are overshadowed by the company's financial instability and production delays.

Positive Factors

Business Model Progress

Virgin Galactic showed tangible evidence of progress around its plan to introduce the Delta class spaceship and unlock its target business model.

Financial Performance

Virgin Galactic plans to achieve positive adjusted EBITDA operations with only two Delta Spaceships in service, potentially yielding $450 million in annualized revenue and approximately $100 million of Adjusted EBITDA.

Operational Milestones

Operational milestones could unlock $8 per share on a DCF basis as the path to free cash flow positive becomes clearer.

Negative Factors

Reliance on External Suppliers

SPCE relies on external suppliers to fabricate their spaceship fuselage, wings, and feathering, which could present risks to the production timeline.

Revenue Generation Concerns

The market continues to question the viability of the company’s business model and path to profitability, with a limited catalyst path until the resumption of revenue-generating flights.

Schedule Delays

The company’s first commercial research flight is now anticipated later than previously expected, suggesting tighter execution risk across the remaining production milestones and raising the possibility of further delays.

Virgin Galactic Holdings Business Overview & Revenue Model

Company Description

Virgin 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 Money

Virgin 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 Financial Statement Overview

Summary

Virgin Galactic Holdings faces significant financial challenges with negative profitability and cash flow metrics. The company continues to operate at a loss, with high expenses overshadowing revenue. The balance sheet shows high leverage, which may pose risks if not managed carefully. While the company maintains some equity stability, the persistent cash flow deficits suggest a need for substantial operational improvements to achieve financial sustainability.

Income Statement

Virgin Galactic Holdings is struggling with negative profitability metrics. The TTM gross profit margin and net profit margin are significantly negative, indicating high costs relative to revenue. The revenue growth rate shows some variability, but overall, revenue remains minimal compared to expenses. EBIT and EBITDA margins are also deeply negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, raising concerns about financial leverage. The return on equity is negative due to the company's ongoing losses. However, the equity ratio is relatively stable, suggesting that equity still constitutes a significant portion of total assets. This stability in equity provides some financial resilience.

Cash Flow

Free cash flow growth remains negative, reflecting ongoing cash burn. The operating cash flow to net income ratio shows consistency with the negative net income, while free cash flow to net income ratio is also negative. This indicates that the company is not generating positive cash flow to support its operations, posing sustainability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.70M	7.04M	6.80M	2.31M	3.29M	238.00K
Gross Profit	-73.48M	-82.99M	-43.74M	406.00K	3.02M	65.00K
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 Assets	898.82M	961.23M	1.18B	1.14B	1.07B	803.99M
Cash, Cash Equivalents and Short-Term Investments	499.51M	563.23M	874.04M	909.01M	603.90M	665.92M
Total Debt	483.22M	420.12M	417.89M	415.72M	42.48M	27.52M
Total Liabilities	635.44M	638.95M	674.04M	659.72M	174.57M	141.47M
Stockholders Equity	263.37M	322.28M	505.48M	480.22M	894.26M	662.52M
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 Flow	122.61M	175.66M	-116.27M	-286.17M	-387.52M	-17.20M
Financing Cash Flow	147.99M	134.34M	475.43M	459.00M	489.36M	436.59M

Virgin Galactic Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPCE, the sentiment is Negative. The current price of 3.02 is below the 20-day moving average (MA) of 3.71, below the 50-day MA of 3.31, and below the 200-day MA of 4.35, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 39.51 is Neutral, neither overbought nor oversold. The STOCH value of 9.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPCE.

Virgin Galactic Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PL	73 Outperform	$2.02B	―	-22.54%	―	9.52%	24.27%
Sector *	63 Neutral	$10.80B	16.80	6.58%	2.06%	2.47%	-15.79%
EH	49 Neutral	$1.27B	―	-43.18%	―	167.99%	22.75%
ACHR	49 Neutral	$6.61B	―	-60.83%	―	―	-4.00%
SIDU	44 Neutral	$29.26M	―	-109.05%	―	-18.70%	84.35%
SPCE	43 Neutral	$172.20M	―	-91.98%	―	-84.19%	55.27%
EVTL	25 Underperform	$507.56M	―	115.25%	―	―	―

Virgin Galactic Holdings Corporate Events

Virgin Galactic Extends CEO Michael Colglazier’s Contract

On July 29, 2025, Virgin Galactic Holdings, Inc. amended and restated the employment agreement with CEO Michael Colglazier, extending his term for five years with automatic annual renewals. The agreement includes an increased base salary, a target annual bonus, and a retention bonus linked to the company’s first revenue-generating Delta spaceflight, reflecting the company’s commitment to leadership stability and incentivizing performance in its commercial spaceflight endeavors.

The most recent analyst rating on (SPCE) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on Virgin Galactic Holdings stock, see the SPCE Stock Forecast page.

Virgin Galactic Approves New Incentive and Stock Plans

On June 5, 2025, Virgin Galactic Holdings held its Annual Meeting of Stockholders where two significant plans were approved: the Third Amended and Restated 2019 Incentive Award Plan, and the 2025 Employee Stock Purchase Plan. The Third A&R Plan increases the number of shares available for incentive stock options and extends the right to grant awards through 2035, while the ESPP allows eligible employees to purchase shares, aiming to enhance employee engagement and ownership. The approval of these plans is expected to impact the company’s operations by potentially increasing employee investment in the company, thereby aligning employee interests with those of shareholders.

The most recent analyst rating on (SPCE) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on Virgin Galactic Holdings stock, see the SPCE Stock Forecast page.