SPCE

Virgin Galactic Holdings, Inc. SPCE paired customer demand with a schedule adjustment on its second-quarter 2026 earnings call. Management moved the first commercial Delta-class spaceflight to February 2027 as installation work took longer than planned, while retaining its 2027 positive quarterly cash flow target. The quarter produced a reported loss of $0.58 per share versus the Zacks Consensus Estimate for a loss of $0.60. Revenues of $0.13 million topped the consensus estimate of $0.10 million. Virgin Galactic Holdings, Inc. price-consensus-eps-surprise-chart | Virgin Galactic Holdings, Inc. Quote President and CEO Michael Colglazier said that the schedule change reflects extensions across hundreds of avionics and mechanical installation tasks, not new scope or a single technical issue. Ground testing is expected to begin in August, followed by shipment to New Mexico in October for flight testing. The second spaceship is expected to join the fleet in March 2027. Colglazier said that the revised timing still supports the planned cadence. Management targets 10 or more spaceflights per month by the end of the second quarter of 2027. Colglazier said that the spaceflight tranche, priced at $750,000, sold out ahead of schedule and was oversubscribed. The bookings added more than $50 million to expected future spaceflight revenues. Virgin Galactic has more than 700 members in its astronaut community. About 60% of the newest cohort booked as part of groups, including research missions and corporate charters. The company retired the $750,000 price point and plans to reopen bookings this fall at higher prices. Responding to a TD Cowen analyst, Colglazier said that successive tranches are expected to carry higher pricing. Executive vice president, CFO and treasurer, Douglas Ahrens, said that the third-quarter 2026 free cash flow is expected between negative $95 million and negative $100 million, as added labor and installation time lift spending. Management expects the outflow to improve to negative $80-$90 million in the fourth quarter as capital expenditure resumes its downward trend. Commercial spaceflight revenue recognition is expected to start in February 2027. Virgin Galactic ended the second quarter with $286 million in cash, cash equivalents and marketable securities after raising $134 million through its at-the-market program. Ahrens said that customers will pay ticket balances ahead of future flights once commercial service begins. Ahrens said that each new spaceship is expected to cost $60 million to produce. Management assumes 500 lifetime flights per ship, six astronauts per flight, average pricing of $600,000 and contribution margins above 80%. Under those assumptions, each spaceship could generate more than $1.4 billion in lifetime contribution margin. With the first two ships, management expects a quarter in 2028 representing $100 million of annualized adjusted EBITDA once average pricing reaches $600,000. The model scales further with fleet expansion. Virgin Galactic projects more than $450 million in annual adjusted EBITDA with four spaceships and an additional launch vehicle at one fully utilized spaceport. A KeyBanc analyst asked whether additional capital would be required before positive cash generation in 2027. Ahrens said that Virgin Galactic does not need additional capital now after strengthening liquidity and reducing debt obligations. He added that future fundraising could be tied to accelerating fleet growth. Capital spending is expected to decline after the fourth quarter of 2026 and further in 2027 as the business shifts from manufacturing toward operations. A Morgan Stanley analyst pressed management on balancing expansion with free cash flow. Ahrens said that the roughly $60 million spaceship costs apply to near-term vehicles, while Colglazier emphasized maintaining a solid balance sheet and demand backlog. Management's focus is completing the first two spaceships while preserving the targeted 2027 operating cadence. The near-term trade-off is higher spending and a later commercial-service start, followed by lower expected capital intensity as manufacturing winds down. Colglazier tied higher future pricing and fleet expansion to customer demand, while Ahrens maintained the target for positive quarterly cash flow within 2027. SPCE presently carries a Zacks Rank #2 (Buy), indicating a favorable near-term earnings estimate revision profile. Its Style Scores are less supportive, with an F for Value, C for Growth, F for Momentum and F for VGM Score. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks framework favors combining a Zacks Rank #1 or #2 with Style Scores of A or B. SPCE's favorable Rank contrasts with weak Value, Momentum and VGM readings, and a middle-range Growth score. The Zacks Rank can change as analysts revise estimates after the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Virgin Galactic Holdings, Inc. (SPCE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Cash Position: Ended Q2 2026 with $286 million in cash equivalents and marketable securities, up from $251 million at the end of the prior quarter. Capital Raised: Raised $134 million through the at-the-market equity offering program during Q2. Debt Reduction: Reduced principal balance on 2027 and 2028 notes by $93 million; remaining principal payments for 2027 notes are $17.9 million. Operating Expenses: $65 million in Q2 2026, compared to $70 million in the prior year period. Capital Expenditures: $41 million in Q2 2026, down from $58 million in the prior year period. Free Cash Flow: Negative $91 million in Q2 2026, a 20% improvement compared to the prior year period. Q3 2026 Revenue Guidance: Approximately $400,000 for future access fees and events. Q3 2026 Free Cash Flow Guidance: Expected to be in the range of negative $95 million to $100 million. Q4 2026 Free Cash Flow Guidance: Projected to be in the range of negative $80 million to $90 million. Future Spaceflight Revenue: Added over $50 million to expected future spaceflight revenue from oversubscribed bookings at the $750,000 price point. Unit Economics: Each new spaceship expected to cost approximately $60 million to produce, with potential to generate over $1.4 billion in lifetime contribution margin based on 500 flights per spaceship, six astronauts per flight, average pricing of $600,000, and contribution margin over 80%. Warning! GuruFocus has detected 5 Warning Signs with SPCE. Is SPCE fairly valued? Test your thesis with our free DCF calculator. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Strong demand for spaceflight expeditions, with the $750,000 price point tranche oversubscribed, adding over $50 million to expected future revenue. Astronaut community has grown to over 700 members, with a diverse range of customers including multi-generation groups, research missions, and corporate charters. Progress on spaceship manufacturing, with the first ship nearing completion and second ship expected to join the fleet in March, supporting planned flight rates. Improved balance sheet with $286 million in cash and marketable securities, up from $251 million, and reduced debt obligations. Projected strong unit economics, with each new spaceship expected to generate over $1.4 billion in lifetime contribution margin. First commercial spaceflight delayed to February 2027 due to longer-than-expected installation tasks, pushing back revenue recognition. Temporary increase in capital expenditures in Q3 2026 due to added labor and resources, leading to a slight uptick in free cash flow burn. Free cash flow remains negative, with Q3 2026 expected to be between negative $95 million and $100 million. No additional capital raise planned currently, but future growth may require capital, which could dilute shareholders. The next launch vehicle development is moving slowly, with no clear timeline or CapEx commitment shared, potentially limiting fleet expansion. Q: Can you help us distinguish between timing and scope regarding the commercial flight timeline shift? Has any material work been added, or is this primarily a derisking decision? Also, on demand durability, you've had two consecutive tranches sell out ahead of schedule at very high prices. Do you see any natural limit to that demand curve, and how are you thinking about pricing for the next fall release?A: Michael Colglazier (CEO): The scope of work is the same, but hundreds of small installation tasks have taken longer than estimated due to minor fit and tolerance issues, not new scope. We've flowed the needed time into the schedule, pushing the first commercial flight to February 2027. On demand, the recent tranche at the $750,000 price point was oversubscribed, and we've closed active bookings. We plan to reopen bookings this fall at higher price points, as we see strong demand and are the only provider of suborbital human spaceflight. We don't need to raise prices as quickly as competitors, but each new tranche will be priced higher than the last. Q: On the cash position, do you see the need to raise additional capital to get to positive cash generation in 2027? Is there any reason we should expect a big step down in burn in early '27, or any way we should think about 2027's cadence once commercial flights resume?A: Douglas Ahrens (CFO): We don't need to raise additional capital at the moment. We raised $134 million through our ATM program in Q2 and have managed our debt payments to align with the expected ramp in operations. When commercial service starts in Q1 2027, we will begin receiving cash inflows from customers ahead of their flights, which changes the cash flow dynamics. While there may be a time in the future to raise capital to accelerate fleet growth, it would be tied to the attractive ROI of adding more vehicles, but nothing is needed today. Q: Can you frame how we should think about the trajectory for CapEx from the third quarter into 2027 based on the updated flight schedule?A: Douglas Ahrens (CFO): CapEx is coming down significantly as we wrap up the build of the spaceships, which has been the primary driver of capital expenditures. We expect CapEx to decrease quite a bit by the fourth quarter and even more in 2027 as the cost structure shifts from CapEx-driven manufacturing to OpEx for commercial spaceflight operations. Q: Given VMS Eve is the solo mothership for now, what is the current flight cycle or maintenance schedule, and are there any structural limitations on that ship as Delta flight testing begins?A: Michael Colglazier (CEO): We have a detailed maintenance program similar to commercial airplanes, with inspections at various flight intervals. We expect Eve to fly on a three-times-per-week cadence, though the maintenance schedule supports higher rates. There are no different structural limitations for the Delta ships compared to Unity; Eve has been adapted and upgraded to be a capable and reliable launch vehicle for the new spaceships. Q: Do you have a parameter for the CapEx commitment or timeline for procuring and building the next mothership, or is that paused until Delta gets into its operating cadence?A: Michael Colglazier (CEO): The next launch vehicle is moving more slowly as we focus on finishing the first spaceship. Once that is complete, we will pivot the team back to the launch vehicle design and engineering. We have internal estimates for the CapEx, but we haven't shared those yet. We plan to alternate production between spaceships and launch vehicles to grow the fleet in a balanced fashion. Q: With the economies of scale laid out for the initial fleet of two spaceships and one launch vehicle to reach an adjusted EBITDA run rate of $90 million to $115 million, how should we think about the cash conversion of that EBITDA to operating cash flow?A: Douglas Ahrens (CFO): We are actually collecting cash ahead of the EBITDA because customers pay for future flights in advance. This gives us a better free cash flow position ahead of the EBITDA as we ramp into operations. The cash conversion ratio relative to EBITDA is very high, and CapEx doesn't become too significant until around 2029 when we undertake the larger lift of launch vehicle development. Overall, the conversion between EBITDA and cash flow is very strong. Q: Is the $60 million cost per incremental spaceship the run rate for spacecraft number three and four, or is that a more mature production cost down the line? And how do you intend to balance growing EBITDA, which requires CapEx investment, versus generating more free cash flow for balance sheet stability?A: Douglas Ahrens (CFO): The $60 million cost is what we see for spaceships going forward, based on our recent experience building the first two ships. It's not a down-the-road estimate; it applies to Delta 3 and 4 as soon as we start building them. On the balance question, the unit economics are so strong that each new spaceship pays for itself in less than a year of flight time. As long as there is demand, it will always make sense to reinvest cash into building more vehicles to meet that demand and rapidly expand profitability. Q: Regarding the rocket production starting in 4Q, given it's the same propulsion used on Unity, will there be additional labor needed to start that back up, and how long does it take to produce one rocket motor?A: Michael Colglazier (CEO): The team in Arizona is multitask-capable. They are currently finishing systems installation on the first spaceship, then will pivot to complete the static test ship, and then move to building the second production spaceship. After that, the majority of the team will shift to rocket production. We don't expect a big ramp-up in labor. The new production line can ramp to about three motors per week initially to support the first two ships, and the infrastructure can handle up to 15 motors per week when we expand the fleet or add a second spaceport. Q: Can you provide more insight into the demand trends you're seeing, particularly regarding the increase in multi-bookings and the types of customers joining the astronaut community?A: Michael Colglazier (CEO): We now have over 700 members in our astronaut community. Approximately 60% of the new cohort is part of a group, ranging from multi-generational expeditions to research missions, corporate charters, and nonprofit bookings. Many new arrivals see space as a platform for broader initiatives, including science-based and nonprofit For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Commercial spaceflight operations moved to February 2027 to accommodate meticulous installation of avionics and mechanical systems on the first Delta ship. The schedule shift resulted from hundreds of small, complex installation tasks requiring more time than estimated to meet precision and quality standards. Strong demand led to an oversubscribed booking tranche at the $750,000 price point, adding over $50 million to future spaceflight revenue. Management observed a new trend in multi-seat bookings, with approximately 60% of the new cohort representing groups, research missions, or corporate charters. Manufacturing teams are operating on two shifts, seven days a week, utilizing a joint workforce from California, New Mexico, and partner agencies to maintain momentum. Learnings from the first build have been integrated into the schedule for the second ship, which is expected to join the fleet in New Mexico in March 2027. The company maintains its projection to deliver positive quarterly cash flow within 2027, supported by a target flight rate of 10 or more flights per month by Q2 2027. A new tranche of spaceflight expeditions will open this fall at higher price points, following the retirement of the $750,000 tier. Capital expenditures are expected to trend downward starting in Q4 2026 as the heavy manufacturing phase for the initial ships concludes. Revenue recognition and significant cash inflows from final customer payments are scheduled to begin concurrently with commercial service in February 2027. Future growth strategy involves balancing spaceship production with the development of a second launch vehicle to expand capacity across multiple spaceports. Strengthened the balance sheet by raising $134 million through an at-the-market equity program, ending Q2 with $286 million in cash and equivalents. Reduced debt obligations by paying down $93 million in principal on 2027 and 2028 notes to align future payments with the operational ramp. Incremental spending is expected in Q3 and Q4 2026 due to added labor and resources required to manage the schedule extensions. Projected unit economics suggest each $60 million spaceship can generate over $1.4 billion in lifetime contribution margin across 500 flights. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified the scope remains unchanged; the delay is due to the accumulation of small variances in wire harness and pneumatic system installations. The shift is a de-risking measure to ensure integrated vehicle ground testing begins with total precision later this month. The Arizona production team is multi-task capable and will pivot from ship assembly to rocket production without a significant labor ramp-up. The facility is designed to scale from 3 motors per week to approximately 15 motors per week by adding shifts to support fleet expansion. Management stated they do not need to raise additional capital currently to reach the 2027 positive cash flow milestone. Future capital raises would be tied specifically to accelerating growth, such as adding vehicles more quickly to capitalize on high ROI assets. VMS Eve is expected to maintain a cadence of 3 flights per week, with maintenance schedules capable of supporting even higher rates. There are no structural limitations on Eve related to the new Delta ships, as weight and landing parameters remain within design tolerances.

Recent Tranche of Spaceflight Expeditions Booked Out Ahead of Schedule and Oversubscribed at $750,000 Price Point, Representing an Addition of Over $50 Million to Expected Future Spaceflight Revenue First Commercial Spaceflight Moves to February 2027 to Complete Systems Installations; Positive Quarterly Cash Flow Expected Within 2027 Upcoming Milestones: Commencement of Flight Test Phase with Spaceship Captive Carry Flight (October 2026); Start of Rocket Production (Q4 2026) ORANGE COUNTY, Calif., August 12, 2026--(BUSINESS WIRE)--Virgin Galactic Holdings, Inc. (NYSE: SPCE) ("Virgin Galactic" or the "Company") today announced its financial results for the second quarter ended June 30, 2026 and provided a business update. CEO Michael Colglazier said, "Our tranche of spaceflight expeditions priced at $750,000 was oversubscribed and booked out ahead of schedule, demonstrating strong demand from a wide range of customers. We expect to release a new tranche of spaceflight expeditions at higher price points this fall. Our first ship is now expected to enter commercial service in February 2027 rather than the fourth quarter of 2026, allowing additional time to complete avionics and systems installations. We expect to commence the flight test phase with this vehicle in October, and with our second spaceship planned to join the fleet in March 2027, we expect to deliver positive quarterly cash flow within 2027." Second Quarter 2026 Financial Highlights Cash position remains strong, with cash, cash equivalents and marketable securities of $286 million as of June 30, 2026. Revenue of $0.1 million, compared to $0.4 million in the second quarter of 2025, attributable to access fees related to future astronauts. GAAP total operating expenses of $65 million, compared to $70 million in the second quarter of 2025. Non-GAAP total operating expenses of $54 million in the second quarter of 2026, compared to $58 million in the second quarter of 2025. Net loss of $56 million, compared to a $67 million net loss in the second quarter of 2025, with the improvement primarily driven by a gain on extinguishment of debt and lower operating expenses in 2026. Adjusted EBITDA totaled $(52) million, consistent with the second quarter of 2025. Net cash used in operating activities totaled $50 million, compared to $55 million in the second quarter of 2025. Cash paid for capital expenditures totaled $41 million, compared to $58 million in the second quarter of 2025. Free cash flow totaled $(91) million, compared to $(114) million in the second quarter of 2025. Generated $134 million in gross proceeds through the issuance of 41 million shares of common stock as part of the Company's at-the-market offering program. Business Updates The Company substantially completed its at-the-market equity offering program, generating $134 million in gross proceeds during the second quarter of 2026. For the notes due December 2028, the Company has no mandatory principal payments due until March 2028 following the principal reduction of $40.5 million during the second quarter of 2026. For the notes due February 2027, the Company reduced the outstanding principal balance by $52.5 million during the second quarter of 2026 to $17.9 million. Financial GuidanceThe following forward-looking statements reflect our expectations for the third quarter of 2026 as of August 12, 2026 and are subject to substantial uncertainty. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed below in "Forward-Looking Statements." Free cash flow for the third quarter of 2026 is expected to be in the range of $(95) million to $(100) million. Free cash flow for the fourth quarter of 2026 is expected to improve from the third quarter and be in the range of $(80) million to $(90) million. Non-GAAP Financial MeasuresIn addition to the Company’s results prepared in accordance with generally accepted accounting principles in the United States (GAAP), the Company is also providing certain non-GAAP financial measures. A discussion regarding the use of non-GAAP financial measures and a reconciliation of such measures to the most directly comparable GAAP information is presented later in this press release. Conference Call InformationVirgin Galactic will host a conference call to discuss the results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) today. To access the conference call, parties should dial +1 800-715-9871 or +1 646-307-1963 and enter the conference ID number 8165984. The live audio webcast along with supplemental information will be accessible on the Company’s Investor Relations website at https://investors.virgingalactic.com/events-and-presentations/. A recording of the webcast will also be available following the conference call. About Virgin GalacticVirgin Galactic is an aerospace and space travel company that enables safe, repeatable commercial human spaceflight and high-altitude scientific discovery. With its advanced air-launch vehicles and industry-leading cost structure, the company is preparing to take humans to space at an unprecedented rate, creating transformative personal experiences and supporting advanced suborbital study and strategic government initiatives. Discover how Virgin Galactic is driving innovation and scaling its business at https://www.virgingalactic.com/. Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our spaceflight systems, development, production and design of our SpaceShips and planned timeline for assembly, testing and commercial service using such Spaceships, our plans to release a new tranche of spaceflights at higher price points and the timing thereof, our plans for rocket motor production and the timing thereof, our plans to take humans to space at an unprecedented rate, to create transformative personal experiences and support advanced suborbital study and strategic government initiatives, our anticipated future cash flow and our objectives for future operations, growth plans and the Company’s financial forecasts, including our expectation to deliver positive quarterly cash flow within 2027 and expected free cash flow in the third and fourth quarters of 2026, are forward-looking statements. The words "believe," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "strategy," "future," "could," "would," "project," "plan," "target," and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to any delay in future commercial flights of our spaceflight fleet, our ability to successfully develop and test our next generation vehicles, and the time and costs associated with doing so, our expected capital requirements and the availability of additional financing, and the other factors, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the "SEC"), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at www.virgingalactic.com, which could cause our actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. Second Quarter 2026 Financial Results Use of Non-GAAP Financial Measures This press release references certain financial measures that are not prepared in accordance with GAAP, including non-GAAP total operating expenses, Adjusted EBITDA, free cash flow and cash flow. The Company defines non-GAAP total operating expenses as total operating expenses other than stock-based compensation, depreciation and amortization, and legal settlement expense. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation and amortization, stock-based compensation, legal settlement expense, and gain on extinguishment of debt. The Company defines free cash flow as net cash provided by operating activities less capital expenditures. The Company defines cash flow as net change in cash, cash equivalents and marketable securities. None of these non-GAAP financial measures is a substitute for or superior to measures prepared in accordance with GAAP and should not be considered as an alternative to any other measures derived in accordance with GAAP. The Company believes that presenting these non-GAAP financial measures provides useful supplemental information to investors about the Company in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational-decision making. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently or may use other measures to calculate their financial performance, and therefore any non-GAAP measures the Company uses may not be directly comparable to similarly titled measures of other companies. A reconciliation of total operating expenses to non-GAAP total operating expenses for the three and six months ended June 30, 2026 and 2025, respectively, is set forth below (in thousands): A reconciliation of net loss to Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025, respectively, is set forth below (in thousands): The following table reconciles net cash used in operating activities to free cash flow for the three and six months ended June 30, 2026 and 2025, respectively (in thousands): The Company has not provided a reconciliation of forward-looking free cash flow and cash flow to the most directly comparable GAAP financial measures because such a reconciliation is not available without unreasonable efforts, due to the variability of these items and/or the fact that there is substantial uncertainty associated with predicting any future adjustments that the Company may make to its GAAP financial measures in calculating such non-GAAP financial measures. View source version on businesswire.com: https://www.businesswire.com/news/home/20260812211408/en/ Contacts For media inquiries: Aleanna Crane - Vice President, [email protected] 575.800.4422For investor inquiries: Eric Cerny - Vice President, Investor [email protected] 949.774.7637

Intuitive Machines, Inc. (LUNR) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 13, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +36.4%. Revenues are expected to be $219.31 million, up 335.9% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 8.9% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Intuitive Machines, Inc., the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -12.85%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Intuitive Machines, Inc. will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Intuitive Machines, Inc. would post a loss of$0.07 per share when it actually produced a loss of -$0.18, delivering a surprise of -157.14%. The company has not been able to beat consensus EPS estimates in any of the last four quarters. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Intuitive Machines, Inc. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Virgin Galactic (SPCE), another stock in the Zacks Aerospace - Defense industry, is expected to report loss per share of $0.6 for the quarter ended June 2026. This estimate points to a year-over-year change of +59.2%. Revenues for the quarter are expected to be $0.1 million, down 75.6% from the year-ago quarter. The consensus EPS estimate for Virgin Galactic has remained unchanged over the last 30 days. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%. This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Virgin Galactic will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intuitive Machines, Inc. (LUNR) : Free Stock Analysis Report Virgin Galactic Holdings, Inc. (SPCE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on lower revenues when Virgin Galactic (SPCE) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly loss of $0.60 per share in its upcoming report, which represents a year-over-year change of +59.2%. Revenues are expected to be $0.1 million, down 75.6% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Virgin Galactic, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that Virgin Galactic will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Virgin Galactic would post a loss of$0.79 per share when it actually produced a loss of -$0.81, delivering a surprise of -2.53%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Virgin Galactic doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Virgin Galactic Holdings, Inc. (SPCE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Virgin Galactic Holdings, Inc.? Here are five stocks we like better. Virgin Galactic said it is still on track to begin flight testing its first Delta-class spaceship in Q3 2026 and start rocket-powered spaceflights in Q4 2026, with commercial operations expected to ramp in 2027. The company reported stronger first-quarter results, with the net loss narrowing to $65 million from $84 million a year ago as operating expenses fell 26%, while cash and marketable securities totaled $251 million at quarter-end. Demand for future flights remains strong, with about 650 founding astronauts booked and new $750,000 seats seeing global interest; Virgin Galactic expects early flights to boost cadence gradually and aims for modest positive quarterly cash flow in 2027. 5 Space Stocks to Watch as the Industry Reaches New Heights Virgin Galactic (NYSE:SPCE) said it remains on schedule to begin flight testing its first new Delta-class spaceship in the third quarter of 2026 and conduct rocket-powered spaceflight in the fourth quarter, as the company works through the final stages of its pre-revenue development phase. On the company’s first-quarter 2026 earnings call, Chief Executive Officer Michael Colglazier said Virgin Galactic delivered the first of its new spaceships from its assembly hangar to its test and launch hangar and has begun ground testing. He said the company continues to expect commercial spaceflight operations to ramp in 2027. → Micron Investors Face a High-Stakes Moment After the Latest Rally MarketBeat Week in Review – 6/19 - 6/23 “We remain on track to commence flight testing in Q3 and space flight in Q4,” Colglazier said. He added that Virgin Galactic has accelerated preparations for commercial operations, including hiring pilots, providing flight-window expectations to existing customers and beginning construction of a rocket motor assembly line in Phoenix. Colglazier said Virgin Galactic reached a “weight on wheels” milestone in April when it moved its first spaceship from the assembly hangar to the test and launch hangar at its Phoenix campus. Structural assembly is also continuing for a static test article and for the company’s second operational spaceship. → How Bad Could Tesla’s Cybertruck Recall Be for Shares? Blastoff! Is Virgin Galactic Stock Headed to the Moon? The static test article will be used extensively in the testing program but will not fly, Colglazier said. The second operational spaceship has begun fabrication and is expected to enter service between late fourth quarter 2026 and early first quarter 2027. He said that timing supports the company’s plan to “substantially increase the number of space flights per month” during the first two quarters of 2027. Colglazier said Virgin Galactic has changed its ground-testing approach compared with its original spaceship, Unity, by investing in off-ship testing infrastructure. That includes the company’s Safety and Test Center in Irvine, California, and an “Iron Bird” test platform used for system-level testing. → Reading the Stripes: Is The Industrial Recession Over? He said the company completed dozens of component qualifications during the quarter, including for its central computer, which he described as “the heart of the digital flight control system.” Virgin Galactic also completed testing of its flight control surfaces under loaded flight conditions at the Southwest Research Institute in San Antonio, Texas, and is preparing to structurally test wing, fuselage and feather subassemblies. Integrated vehicle ground testing in Phoenix is expected to begin in June. After ground testing is complete, the company plans to carry the new spaceship to Spaceport America using its launch vehicle, Eve. Glide testing is expected to begin in the third quarter, followed by rocket-powered flights in the fourth quarter. Colglazier also said Unity is expected to return to the skies for several glide flights above Spaceport America later this month, providing pilots with a real-world proxy ahead of testing the new spaceship. Virgin Galactic has about 650 “founding astronauts” booked for spaceflight expeditions, which Colglazier said represents roughly one year of advance bookings. The company has provided those customers with expected flight windows through a new astronaut portal. Most are expected to fly in 2027, with the remainder expected in the first half of 2028. The company recently opened a limited number of new bookings priced at $750,000 each, with expected flight dates in mid-2028. Colglazier said the response has been “strong and global in nature,” with qualified inquiries from customers in more than 20 countries. During the question-and-answer session, Colglazier said interest has come from individuals, families, groups of friends, research organizations, government agencies and potential corporate charter customers. He said the company has secured deposits for “a meaningful portion” of the available seats at the $750,000 price point and expects to close that limited tranche during the glide flight program in the third quarter. Once that tranche is allocated, Virgin Galactic plans to pause new bookings and later open another tranche, likely at a higher price, Colglazier said. Chief Financial Officer Doug Ahrens said Virgin Galactic generated $200,000 in first-quarter revenue from access fees related to future astronauts. Total operating expenses were $66 million, down 26% from $89 million in the prior-year period. The company reported a first-quarter net loss of $65 million, an improvement from a loss of $84 million a year earlier. Adjusted EBITDA was negative $55 million, compared with negative $72 million in the prior-year period. Capital expenditures were $40 million, down from $46 million a year earlier, and free cash flow was negative $93 million, a 23% improvement from the prior-year period. Virgin Galactic ended the quarter with $251 million in cash, cash equivalents and marketable securities, including $11 million in gross proceeds from its at-the-market equity offering program. Ahrens said that figure did not include $52 million in gross proceeds raised through the ATM program in April. Ahrens also said the company announced the potential redemption of $10 million of 2028 first lien notes through an exchange for common stock. He said the redemption is being made ahead of schedule and reduces debt payments due in September. For the second quarter of 2026, Virgin Galactic expects revenue of approximately $100,000 from future astronaut access fees. The company projected second-quarter free cash flow of negative $87 million to negative $92 million, with slightly less than half allocated to capital expenditures. Ahrens said free cash flow is expected to improve modestly in the third quarter and continue improving in the fourth quarter, when the company expects to begin generating revenue from spaceflight operations. By the fourth quarter, Virgin Galactic expects quarterly operating expense, including variable spaceflight costs, to be in the range of $70 million to $80 million. Ahrens said the company expects to fly four flights per month in January 2027 and reach eight flights per month by the second quarter of 2027, while fourth-quarter 2026 flight cadence will be intentionally constrained to allow learning between flights. Ahrens said early flights will largely include customers who bought reservations years ago at lower prices, with many at $200,000 to $250,000 per astronaut. As higher-priced tickets enter the mix, the company expects average revenue per astronaut to rise. Ahrens said Virgin Galactic expects to achieve modest quarterly positive cash flow within 2027 and reach the adjusted EBITDA level shown in its business model on an annualized basis sometime during 2028 as average ticket prices improve. Colglazier said Virgin Galactic’s licensing process for its new spaceships is underway and that the company has submitted its spaceflight operator license application to the FAA, which has been accepted. He said the company expects to receive its license before its first powered flight in the fourth quarter. Asked about potential obstacles to increasing flight cadence, Colglazier said he does not expect licensing to be a complication. He said the company’s previous flight cadence was constrained by its own inspection and maintenance process, not by the FAA. Colglazier also said Virgin Galactic continues to work with Italian partners on a potential spaceport in Italy, including business model and public-private partnership considerations. He said the company is also in discussions about additional spaceport locations and continues to see potential for three to four permanent spaceports, along with possible partial-year spaceports. The company has also begun construction of a new rocket motor assembly line at its Phoenix campus, which Colglazier said is expected to be operational in the fourth quarter. He said the timing aligns with completion of the second spaceship and would allow the Phoenix team to shift from spaceship assembly to rocket motor assembly. Virgin Galactic Holdings, Inc (NYSE: SPCE) is a commercial spaceflight company developing and operating spacecraft for private individuals and research customers. The firm's primary business is suborbital human spaceflight, offering passengers a brief trip to the edge of space aboard its reusable spaceplane. In parallel, the company is building out infrastructure and support services for suborbital payload deployments and microgravity research missions. The core flight system consists of a carrier aircraft, WhiteKnightTwo, which lifts the spaceplane SpaceShipTwo to high altitude before release. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Virgin Galactic Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

First SpaceShip Advancing Through Ground Test Phase; Static Test Article Assembly In Progress; Fabrication of Second SpaceShip Underway Flight Test Continues on Track for Q3 2026 First Spaceflight Continues on Track for Q4 2026 ORANGE COUNTY, Calif., May 14, 2026--(BUSINESS WIRE)--Virgin Galactic Holdings, Inc. (NYSE: SPCE) ("Virgin Galactic" or the "Company") today announced its financial results for the first quarter ended March 31, 2026 and provided a business update. CEO Michael Colglazier said, "We’ve delivered the first of our new SpaceShips from our Assembly hangar to our Test-and-Launch hangar, ground testing of that SpaceShip is underway, and we remain on track to commence flight testing in Q3 and spaceflight in Q4 of this year. Spending continues to decline quarter by quarter, debt retirements are being made on or ahead of schedule, and cash balances are being maintained at appropriate levels as we work through the final quarters of our pre-revenue phase and prepare for the launch of commercial spaceflight operations." First Quarter 2026 Financial Highlights Cash position remains strong, with cash, cash equivalents and marketable securities of $251 million as of March 31, 2026. Revenue of $0.2 million, compared to $0.5 million in the first quarter of 2025, attributable to access fees related to future astronauts. GAAP total operating expenses of $66 million, compared to $89 million in the first quarter of 2025. Non-GAAP total operating expenses of $58 million in the first quarter of 2026, compared to $80 million in the first quarter of 2025. Net loss of $65 million, compared to an $84 million net loss in the first quarter of 2025, with the improvement primarily driven by lower operating expenses. Adjusted EBITDA totaled $(55) million, compared to $(72) million in the first quarter of 2025, primarily driven by lower operating expenses. Net cash used in operating activities totaled $54 million, compared to $76 million in the first quarter of 2025. Cash paid for capital expenditures totaled $40 million, compared to $46 million in the first quarter of 2025. Free cash flow totaled $(93) million, compared to $(122) million in the first quarter of 2025. Generated $11 million in gross proceeds through the issuance of 4.0 million shares of common stock as part of the Company's at-the-market offering program. Business Updates During April 2026, the Company generated approximately $52 million in gross proceeds through its at-the-market offering program and had approximately $87 million remaining on the existing program. On April 30, 2026, the Company announced an offer to redeem $10 million of debt originally due in September of 2026 by issuing shares of its common stock. Upon the successful completion of this redemption, the remaining amount outstanding on the first lien notes due in December 2028 will be $202 million. Construction to support rocket motor production assembly line at the spaceship factory in Arizona is underway. Financial Guidance The following forward-looking statements reflect our expectations for the second quarter of 2026 as of May 14, 2026 and are subject to substantial uncertainty. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed below in "Forward-Looking Statements." Free cash flow for the second quarter of 2026 is expected to be in the range of $(87) million to $(92) million. For the remainder of 2026, quarterly free cash flow is expected to show sequential improvement from the second quarter. Non-GAAP Financial Measures In addition to the Company’s results prepared in accordance with generally accepted accounting principles in the United States (GAAP), the Company is also providing certain non-GAAP financial measures. A discussion regarding the use of non-GAAP financial measures and a reconciliation of such measures to the most directly comparable GAAP information is presented later in this press release. Conference Call Information Virgin Galactic will host a conference call to discuss the results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) today. To access the conference call, parties should dial +1 800-715-9871 or +1 646-307-1963 and enter the conference ID number 4185352. The live audio webcast along with supplemental information will be accessible on the Company’s Investor Relations website at https://investors.virgingalactic.com/events-and-presentations/. A recording of the webcast will also be available following the conference call. About Virgin Galactic Virgin Galactic is an aerospace and space travel company, pioneering human-first spaceflight for private individuals, researchers, and governments with its advanced SpaceShips and launch vehicle. Scale and profitability are driven by next-generation vehicles capable of taking humans to space at an unprecedented frequency with an industry-leading cost structure. You can find more information at https://www.virgingalactic.com/. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our spaceflight systems, development, production and design of our SpaceShips and planned timeline for assembly, testing and commercial service using such SpaceShips, our plans to hire pilots, our plans for constructing our rocket motor assembly line at the spaceship factory and our objectives for future operations, growth plans and the Company’s financial forecasts, including expected free cash flow in the second quarter 2026 and for subsequent quarters in 2026, are forward-looking statements. The words "believe," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "strategy," "future," "could," "would," "project," "plan," "target," and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to any delay in future commercial flights of our spaceflight fleet, our ability to successfully develop and test our next generation vehicles, and the time and costs associated with doing so, our expected capital requirements and the availability of additional financing, and the other factors, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the "SEC"), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at www.virgingalactic.com, which could cause our actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. Use of Non-GAAP Financial Measures This press release references certain financial measures that are not prepared in accordance with GAAP, including non-GAAP total operating expenses, Adjusted EBITDA and free cash flow. The Company defines non-GAAP total operating expenses as total operating expenses other than stock-based compensation and depreciation and amortization. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation and amortization, and stock-based compensation. The Company defines free cash flow as net cash provided by operating activities less capital expenditures. None of these non-GAAP financial measures is a substitute for or superior to measures prepared in accordance with GAAP and should not be considered as an alternative to any other measures derived in accordance with GAAP. The Company believes that presenting these non-GAAP financial measures provides useful supplemental information to investors about the Company in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational-decision making. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore any non-GAAP measures the Company uses may not be directly comparable to similarly titled measures of other companies. A reconciliation of total operating expenses to non-GAAP total operating expenses for the three months ended March 31, 2026 and 2025, respectively, is set forth below (in thousands): A reconciliation of net loss to Adjusted EBITDA for the three months ended March 31, 2026 and 2025, respectively, is set forth below (in thousands): The following table reconciles net cash used in operating activities to free cash flow for the three months ended March 31, 2026 and 2025, respectively (in thousands): The Company has not provided a reconciliation of forward-looking free cash flow to the most directly comparable GAAP financial measures because such a reconciliation is not available without unreasonable efforts, due to the variability of these items and the fact that there is substantial uncertainty associated with predicting any future adjustments that we may make to our GAAP financial measures in calculating our non-GAAP financial measures. View source version on businesswire.com: https://www.businesswire.com/news/home/20260514666939/en/ Contacts For media inquiries: Aleanna Crane - Vice President, Communications [email protected] 575.800.4422 For investor inquiries: Eric Cerny - Vice President, Investor Relations [email protected] 949.774.7637