Virgin Galactic Holdings Inc (SPCE) Q1 2025 earnings call Highlights: Progress towards …

Appearance date: May 15, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Virgin Galactic Holdings Inc (NYSE: SPCE) will make solid progress until 2026 to bring the next generation spaceships into commercial service.

• The company focuses strongly on the control of the costs, which leads to a decline in operating costs a year compared to the previous year.

• Virgin Galactic Holdings Inc (NYSE: SPCE) holds a strong record with over half a billion dollars of cash equivalents and marketable securities.

• The company uses modern avion and proprietary software to improve the predictability and reduction of the maintenance requirements.

• Virgin Galactic Holdings Inc (NYSE: SPCE) plans to reopen the spatial reservations in the first quarter of 2026, whereby the expectations of pricing and strong customer interest are expected.

• The company is still in one phase before the introduction, whereby sales for the first quarter are only $ 500,000.

• The Free Cashflow remains negative in the second quarter of 2025, with a forecast of 105 to 115 million US dollars.

• Risks are associated with the production time bar, since unexpected delays in the provision of parts have already occurred.

• The company faces challenges in setting up a second room manager in Italy, with airspace and economic factors being important considerations.

• Virgin Galactic Holdings Inc (NYSE: SPCE) is still dependent on significant investment expenses for tool and manufacturing capacity.

Q: How do you think over the entire addressable market of 300,000 US dollars or more and how do you think about 100 million US dollars about the free cash flow? Do tariffs also affect their material inputs? A: Michael Colg Glazer, CEO: We have no new inputs for the entire addressable market of 300,000 US dollars. We expect strong sales activities and repetitions to see how the private astronauts of our last flight log out again. Most of our materials are the United States and we have bought blade materials, which minimizes the tariff effects. Doug Aarons, CFO: The top expenses are behind us, and we expect a falling expenditure trend until 2025, which will be aimed at less than $ 100 million in the fourth quarter of 2025. In 2026, with two spaceships in operation, we expect a positive cash flow.

Q: What is the ideal residue size in view of the future flight cadence and how do you plan to manage sales waves? A: Michael Colg Glazer, CEO: A 1 to 2-year deficit is ideal for flexibility and earnings management. We plan to fly 125 flights every year with six people per flight. With sales waves, we can manage pricing and offer an onboarding experience from Weißglove, which improves customer satisfaction and brand value.