Virgin Galactic Holdings, Inc. today announced its financial results for the first quarter ended March 31, 2026 and provided a business update.

CEO Michael Colglazier said, "We've delivered the first of our new SpaceShips from our Assembly hangar to our Test-and-Launch hangar, ground testing of that SpaceShip is underway, and we remain on track to commence flight testing in Q3 and spaceflight in Q4 of this year. Spending continues to decline quarter by quarter, debt retirements are being made on or ahead of schedule, and cash balances are being maintained at appropriate levels as we work through the final quarters of our pre-revenue phase and prepare for the launch of commercial spaceflight operations."

First Quarter 2026 Financial Highlights

– Cash position remains strong, with cash, cash equivalents and marketable securities of $251 million as of March 31, 2026.

– Revenue of $0.2 million, compared to $0.5 million in the first quarter of 2025, attributable to access fees related to future astronauts.

– GAAP total operating expenses of $66 million, compared to $89 million in the first quarter of 2025. Non-GAAP total operating expenses of $58 million in the first quarter of 2026, compared to $80 million in the first quarter of 2025.

– Net loss of $65 million, compared to an $84 million net loss in the first quarter of 2025, with the improvement primarily driven by lower operating expenses.

– Adjusted EBITDA totalled $(55) million, compared to $(72) million in the first quarter of 2025, primarily driven by lower operating expenses.

– Net cash used in operating activities totalled $54 million, compared to $76 million in the first quarter of 2025.

– Cash paid for capital expenditures totalled $40 million, compared to $46 million in the first quarter of 2025.

– Free cash flow totalled $(93) million, compared to $(122) million in the first quarter of 2025.

– Generated $11 million in gross proceeds through the issuance of 4.0 million shares of common stock as part of the Company's at-the-market offering program.

Business Updates

– During April 2026, the Company generated approximately $52 million in gross proceeds through its at-the-market offering program and had approximately $87 million remaining on the existing program.

– On April 30, 2026, the Company announced an offer to redeem $10 million of debt originally due in September of 2026 by issuing shares of its common stock. Upon the successful completion of this redemption, the remaining amount outstanding on the first lien notes due in December 2028 will be $202 million.

– Construction to support rocket motor production assembly line at the spaceship factory in Arizona is underway.

Financial Guidance

The following forward-looking statements reflect our expectations for the second quarter of 2026 as of May 14, 2026 and are subject to substantial uncertainty. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed in "Forward-Looking Statements."

– Free cash flow for the second quarter of 2026 is expected to be in the range of $(87) million to $(92) million.

– For the remainder of 2026, quarterly free cash flow is expected to show sequential improvement from the second quarter.

Non-GAAP Financial Measures

In addition to the Company's results prepared in accordance with generally accepted accounting principles in the United States (GAAP), the Company is also providing certain non-GAAP financial measures. A discussion regarding the use of non-GAAP financial measures and a reconciliation of such measures to the most directly comparable GAAP information is presented later in this press release.

Conference Call Information

Virgin Galactic will host a conference call to discuss the results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) today. The live audio webcast along with supplemental information will be accessible on the Company's Investor Relations website. A recording of the webcast will also be available following the conference call.