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This article first appeared on GuruFocus.

Release Date: November 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Virgin Galactic Holdings Inc (NYSE:SPCE) is making significant progress in its spaceship program, with major milestones being crossed and a decline in outstanding production checklist items.

• The company expects to begin its flight test program in Q3 2026 and its first space flight in Q4 2026, with no changes to the previously forecasted dates.

• The new oxidizer tank has been qualified for the life of the Delta class spaceships, supporting up to 500 or more space flights, significantly increasing reusability.

• Virgin Galactic Holdings Inc (NYSE:SPCE) is preparing for commercial service launch in Q4 2026, with plans to open the first tranche of sales opportunities in Q1 2026.

• The company has a strong balance sheet with $424 million in cash equivalents and marketable securities, and it is on track to achieve a highly profitable business model with projected annual revenue of $450 million at high margins.

• The completion dates for the wing and feather subassemblies have shifted modestly, although they remain ahead of the critical path.

• The fuselage subassembly is driving the critical path, with manufacturing and supply chain challenges needing resolution.

• Operating expenses for the third quarter were $67 million, and the company reported a net loss of $64 million.

• Free cash flow was negative at $-108 million in the third quarter, although it was within the range of prior guidance.

• The company anticipates a ramp-up in spending as it approaches the start of commercial service, which may impact cash flow positivity.

Q: You mentioned opening the first tranche of sales in Q1 2026. Any initial observations on the size of that tranche or flight price on reopening? A: Michael Colglazer, CEO: We haven’t publicly stated the price, but it will likely be higher than the last published price of $600,000. We plan to sell a quantity at a set price and then reassess for the next tranche, likely increasing the price incrementally.

Q: How are you thinking about the ramp and flight cadence for 2027, given the backlog of astronauts? A: Michael Colglazer, CEO: We plan to start with one flight a week, then move to two, and eventually three flights a week over the first two to three months of operation. The ships and maintenance teams will be ready to meet the cadence of approximately 125 flights a year.