Virgin Galactic (NYSE: SPCE) experienced a significant uptick of about 20% in its shares during pre-market trading on Friday. This surge followed the company’s announcement regarding its first-quarter predictions and adhering to its flight schedule.
In terms of financials, the company posted a quarterly net loss of $84.5 million, translating to $2.38 per share. This marked an improvement compared to the previous year’s loss of $5.10 per share. However, revenues fell to $500,000 from $2.0 million in the first quarter of 2024 due to ongoing suspensions of commercial flights while development progresses on their Delta-class spacecraft.
Operating expenses decreased by 21% year-on-year to $89 million, which contributed to narrowing the quarterly deficit. Adjusted EBITDA also showed improvement, narrowing to minus $72 million, a notable change from the $87 million deficit the previous year. Free cash flow remained stable at approximately $122 million, with overall liquidity recorded at $567 million.
The management reiterated its plans to launch its first research payload in summer 2026 and initiate a private astronaut mission in the fall of that year, though they did not indicate any acceleration in this timeline. As cash reserves are depleted without a clear pathway forward, investor sentiment may be cautious, even if results did surpass expectations.
According to a one-year price target given by seven analysts, Virgin Galactic Holdings Inc’s average target stands at $8.82, with estimates ranging as high as $36.00 and as low as $1.00. This average suggests a potential upside of 163.33% from the current share price of $3.35.
