Virgin Galactic misses Q4 revenue estimates
Overview
U.S. space travel firm's Q4 revenue declined and missed analyst expectations
Net loss and adjusted EBITDA improved, driven by lower operating expenses
Company launched sales for spaceflight expeditions and realigned capital to support operations
Outlook
Virgin Galactic expects Q1 2026 free cash flow between $(90) mln and $(95) mln
Company expects free cash flow to improve sequentially for remainder of 2026
Virgin Galactic expects first new SpaceShip to begin commercial operations in Q4 2026
Result Drivers
COMMERCIAL FLIGHT PAUSE - Co said revenue decline was driven by pause in commercial spaceflights to focus on new SpaceShip production
LOWER OPERATING EXPENSES - Net loss and adjusted EBITDA improved primarily due to reduced operating expenses
CAPITAL REALIGNMENT - Co executed capital realignment transactions to better align debt maturities with planned ramp in cash flow from commercial operations
Company press release: ID:nBw5mLbgYa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Miss | $312,000 | $495,000 (5 Analysts) |
Q4 EPS |
| -$0.98 |
|
Q4 Net Income |
| -$62.72 mln |
|
Q4 Operating Expenses |
| $61.10 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy."
Wall Street's median 12-month price target for Virgin Galactic Holdings Inc is $3.84, about 69.9% above its March 27 closing price of $2.26
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