Virgin Galactic (SPCE) Stock Blasts Off On Q3 Earnings: Astronauts Report 'Overwhelmingly Positive Experience'

Virgin Galactic Holdings Inc SPCE shares are taking off in Wednesday's after-hours session after the company reported third-quarter results. Here's a rundown of the report. 

What Happened: Virgin Galactic reported second-quarter revenue of $1.7 million. The company's top-line results more than doubled on a year-over-year basis, driven by commercial spaceflight and membership fees related to future astronauts.

The space tourism company reported a net loss of 28 cents per share, which was improved from a loss of 55 cents per share in the prior year's quarter. 

Net cash used in operating activities totaled $91 million. Free cash flow was negative $105 million in the third quarter. Virgin Galactic ended the quarter with $1.1 billion in cash, equivalents and marketable securities.

"With six spaceflights successfully completed in under six months, Virgin Galactic has demonstrated the repeatability of our spaceflight system and also showcased the overwhelmingly positive experience of our Astronauts," said Michael Colglazier, CEO of Virgin Galactic.

Outlook: Virgin Galactic expects fourth-quarter revenue of approximately $3 million. Free cash flow is expected to be between negative $125 million and negative $135 million. 

"With our third quarter cash and marketable securities position of approximately $1.1 billion, we forecast having sufficient capital to bring our first two Delta ships into service and achieve positive cash flow in 2026," Colglazier said.

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

See Also: SpaceX Sets Sights On $15B In Sales For 2024, Banks On Starlink's Expansion

SPCE Price Action: Virgin Galactic shares were up 17.9% after hours at $1.84 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Virgin Galactic.