Virgin Galactic's Q3 net loss narrows on lower operating expenses; revenue beats estimates

Overview

• Space tourism firm's Q3 revenue was flat yr/yr, slightly beating analyst expectations

• Net loss narrowed from prior year, driven by lower operating expenses

• Company expects first commercial spaceflight in early Q2 2027, with capacity expansion planned

Outlook

• Virgin Galactic expects Q4 2026 free cash flow of -$80 mln to -$90 mln

• Company expects first commercial spaceflight in early Q2 2027

• Company plans to increase spaceflight capacity to 150 flights per year by end of 2028

Result Drivers

• LOWER OPERATING EXPENSES - Co said net loss improvement was primarily driven by reduced operating expenses in Q3 2026

• MINIMAL REVENUE SOURCES - Q3 revenue attributed to access fees related to future astronauts and a future astronaut event

Company press release:

Key Details

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 2 "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 $3.05, about 6.3% above its November 11 closing price of $2.87

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)