Virgin Galactic Stock Is Falling: What's Going On?

Virgin Galactic Holdings Inc SPCE shares are trading lower in Tuesday's after-hours session on the heels of the company's second-quarter results.

What Happened: Virgin Galactic reported second-quarter revenue of $1.87 million, which missed the consensus estimate of $2.69 million.

The company reported an adjusted loss of 46 cents per share, which beat analyst estimates for a loss of 51 cents per share. 

The loss was wider than the prior year, primarily driven by an increase in research and development expenses related to the development of its future fleet.

Free cash flow used came in at $135 million versus $91 million utilized in the second quarter of 2022.

Virgin Galactic said its cash position remains strong, with cash, equivalents and marketable securities of $980 million as of June 30.

"During the quarter, we successfully completed two spaceflights in two months, including the launch of commercial service in late June with a scientific research mission," said Michael Colglazier, CEO of Virgin Galactic.

"Scheduled for next week, the 'Galactic 02' mission will deliver a transformational experience for our first private astronauts, and we expect to continue broadening access to space with monthly flights thereafter."

Virgin Galactic said it anticipates revenue of approximately $1 million in both the third and fourth quarters. Free cash flow utilized in both quarters is expected to be $120 million to $130 million.

Virgin Galactic said it remains on track to deliver Delta Class spaceships for commercial service in 2026.

Management will hold a conference call to discuss these results at 5 p.m. ET.

See Also: Elon Musk's SpaceX Revolution: From 'Fool's Errand' To Building A 'New Internet In Space'

SPCE Price Action: Virgin Galactic shares were down 3.14% after hours at $4.00 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Virgin Galactic.