Virgin Galactic (NYSE:SPCE) executives used the company’s fourth-quarter and full-year 2025 earnings call to highlight progress toward restarting commercial spaceflight operations in late 2026, including major build milestones for its first next-generation spaceship, the reopening of ticket sales at a higher price point, and capital-structure actions intended to extend the company’s financial runway.
Assembly milestones and a roadmap to commercial service
CEO Michael Colglazier said Virgin Galactic has “completed structural assembly of all three major components” of its first new ship—its wing, fuselage, and feather—and expects to reach a “weight-on-wheels” milestone in the coming weeks as the major sections are joined. Colglazier said that progress positions the vehicle to enter ground testing in April, with flight testing planned to begin in the third quarter and the first spaceflight targeted for the fourth quarter of 2026.
Looking ahead, Colglazier outlined upcoming program milestones:
- April 2026: Start of production acceptance testing (PAT) and integrated vehicle ground testing (IVGT).
- July 2026: Ground testing expected to conclude, followed by opening the hangar in Phoenix, christening the ship, and transporting it to Spaceport America in New Mexico.
- May 2026: Pilot proficiency effort using glide flights of Unity over Spaceport America.
- Q3 2026: Start of the flight test program, including glide flights and rocket-powered flights.
- Q4 2026: Targeted start of commercial spaceflight operations.
On the flight-test sequence, President of Spaceline Missions and Safety Mike Moses said the plan includes one partial-burn rocket-powered flight that does not reach space, followed by two spaceflights before commercial service. Moses said the first spaceflight will carry only pilots plus research payloads “through the NASA Flight Opportunities program,” and the second will include “two pilots and six mission specialists” (internal personnel) to validate cabin experience and procedures. Moses said the program is shorter than Unity’s because the company is “not learning that envelope for the first time,” though he added Virgin Galactic will proceed with “safety in mind and prudence” and will analyze data between flights.
Ticket sales reopen at $750,000, with higher-priced early opportunities planned
Virgin Galactic said it has reopened sales for spaceflight expeditions, offering a limited tranche of 50 reservations priced at $750,000 per seat. Colglazier said these flights will be scheduled after the company flies its existing “spacefarer community,” which he put at “over 650 founding astronauts.” He added the company expects pricing to rise “in steps” and plans to retire the $750,000 price level after the initial tranche.
Colglazier also said Virgin Galactic intends to offer “a very limited number of reservations to join our earliest space flights on our new spaceship,” which he said will be priced “substantially higher” than regular reservations. He framed the offer around the milestone of being among the first 1,000 humans to go to space, noting that to date “slightly less than 800 people have flown to space throughout history,” and that government flights would reduce the remaining slots.
In response to a question about competition, Colglazier pointed to Blue Origin’s stated intent to focus on its lunar program and said it “was that they were out for no less than two years.” He said Virgin Galactic believes it is “well-positioned” for customers seeking a suborbital experience at a lower price point than orbital space station missions.
Flight cadence plans and capacity constraints
Colglazier said Virgin Galactic expects to begin commercial operations at about four flights per month, then progress to an average of eight flights per month, and later to “10 flights per month or more” after scaling operations. He said the company’s goal is to reach a cadence of 10+ flights per month “sometime in the second quarter of 2027,” subject to vehicle and operational readiness, with weather among the variables that can influence realized cadence.
The company also discussed the role of its carrier aircraft, Eve. Colglazier said Eve has been flying for pilot proficiency and received a significant upgrade, positioning it to support “up to 12-15 space flights per month.” He said this capacity above expected average cadence could help address weather-related delays and said the upgrades are expected to support Eve’s service life “into 2032 or beyond.”
In Q&A, Colglazier described how cadence scales with fleet availability, saying each spaceship is expected to fly twice per week. He said one spaceship and Eve could support an “eight flights per month capability,” while moving beyond eight per month toward 10+ requires a second spaceship, which the company expects to enter service between “late Q4 2026 and early Q1 2027.” He added that beyond the capacity Eve can support, Virgin Galactic expects to need additional launch vehicles, pointing to its LV-X development program and a target for “commercial deployment” of LV-X vehicles “in 2030.”
Italy study, additional spaceport discussions, and partnership approach
Colglazier said Virgin Galactic is nearing the conclusion of its initial study for “Spaceline operations in Italy,” describing progress with partners in the Italian government focused on the Puglia region. He listed achievements including airspace deconfliction planning, probable flight paths and trajectories, infrastructure requirements, weather assessments, and reviews of supply chain and hospitality availability. He said next steps include licensing specifics, timetables, and business arrangements.
Colglazier also said Virgin Galactic advanced spaceport discussions with “additional governments” and expects to share more later regarding international expansion opportunities alongside growth at Spaceport America.
Asked about the investment model for new spaceports, Colglazier said each deal will differ but suggested the arrangements are “likely to be joint venture agreements,” with Virgin Galactic contributing its spaceflight system and vehicles and partner countries contributing physical infrastructure such as the spaceport and runway, along with government-related airspace support. He also described a role for the local community in providing the broader astronaut and guest experience, including hotels and activities.
Capital realignment, cash position, and 2026 outlook
CFO Doug Ahrens detailed “capital realignment transactions” completed in December. He said Virgin Galactic executed an exchange with holders of its 2027 convertible bonds, addressing $355 million of $425 million originally due in February 2027. Ahrens said benefits included extending the final maturity to December 2028, eliminating $142 million of contractual debt payments, and adding flexibility to settle portions of obligations in cash or equity. He also said the company issued warrants with an exercise price “more than double” the recent stock price, and that the warrants would require cash payments to Virgin Galactic upon exercise.
For the fourth quarter of 2025, Ahrens reported revenue of $300,000 from access fees tied to future astronauts. He said fourth-quarter operating expenses fell 26% year-over-year to $61 million, net loss improved to $63 million, adjusted EBITDA improved to negative $49 million, and free cash flow was negative $95 million, which he said was at the midpoint of prior guidance.
For full-year 2025, Ahrens reported $2 million in revenue from access fees, operating expenses of $287 million, net loss of $279 million, adjusted EBITDA of negative $226 million, and free cash flow of negative $438 million. He said the company ended 2025 with $338 million in cash, cash equivalents, and marketable securities. He also said Virgin Galactic generated $122 million in gross proceeds through its at-the-market (ATM) equity offering program during 2025, and reported capital expenditures of $198 million for 2025, up from $122 million the prior year. He said property, plant and equipment rose to $389 million at year-end 2025, up 86% from $209 million at the end of 2024.
Looking to 2026, Ahrens said first-quarter revenue is expected to be about $200,000 in access fees and free cash flow is expected to be in the range of negative $90 million to negative $95 million, with sequential improvement expected after the first quarter. He said a “big change” is expected in the fourth quarter of 2026 due to customer cash inflows as commercial service begins and customers make final payments ahead of flights.
Ahrens also addressed a going concern disclosure expected in the company’s forthcoming 10-K, explaining that the accounting assessment compares cash on hand to spending projections and assumes contractual debt payments are settled in cash, while not allowing inclusion of expected future cash inflows from spaceflights or potential additional capital inflows such as the remaining $138 million under the ATM program.
On cash flow timing, Colglazier reiterated the company’s goal of reaching “modestly positive quarterly cash flow within 2027,” and Ahrens clarified that he used the term “cash flow” intentionally rather than “free cash flow,” noting that potential financing inflows and reinvestment could affect free cash flow even if the company is building cash balance overall.
In Q&A on defense-related opportunities, Colglazier said Virgin Galactic has been “accepted into the IDIQ for the Golden Dome initiative,” describing it as qualifying the company as a supplier, but he said there was “nothing specific to share” beyond ongoing work to identify near-term and longer-lead opportunities involving Eve and future spaceships.
About Virgin Galactic (NYSE:SPCE)
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.
