Virgin Galactic Holdings, Inc
For the period ended Sep 30, 2025. Filed Nov 13, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 13, 2025
SPCE$2.77+16.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001706946-25-000131
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-13.
0001706946-25-000150
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 74 previous paragraphs and 74 current paragraphs.
48 unchanged; 21 reworded; 4 added; 5 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
We are continuing the development of our new Delta Class spaceships and are progressing through our build milestones. We currently expect our flight test program to commence in the third quarter of 2026 and then our first commercial spaceflight, a research flight, is expected to occur in the fourth quarter of 2026. We currently expect private astronaut spaceflights to commence six to eight weeks after our first commercial spaceflight.
Current report
Spaceline operations expense decreased from $19.9 million for the three months ended September 30, 2024 to $19.5 million for the three months ended September 30, 2025. The decrease was primarily driven by a $4.6 million decrease in cash compensation and other employee benefit costs, partially offset by a $4.4 million increase in materials and sub-contractor and contract labor costs.
Current report
Spaceline operations expense decreased from $69.8 million for the nine months ended September 30, 2024 to $54.5 million for the nine months ended September 30, 2025. The decrease was primarily driven by a $15.9 million decrease in cash compensation and other employee benefit costs.
Current report
Income Tax Expense
Removed paragraphs (5)
Previous report
The development of our new Delta Class spaceships is on track. We are progressing through our build milestones with key tools and materials continuing to arrive at our spaceship final assembly facility. Commercial service remains planned for 2026, with both research and private astronaut flights expected in the fall of 2026.
Previous report
Spaceline operations expense decreased from $27.3 million for the three months ended June 30, 2024 to $14.2 million for the three months ended June 30, 2025. The decrease was primarily driven by a $8.7 million decrease in cash compensation and other employee benefit costs and a $4.1 million decrease in materials, sub-contractor and contract labor costs, and other operational costs.
Previous report
Spaceline operations expense decreased from $49.9 million for the six months ended June 30, 2024 to $35.0 million for the six months ended June 30, 2025. The decrease was primarily driven by an $11.3 million decrease in cash compensation and other employee benefit costs and a $3.8 million decrease in decrease in materials, sub-contractor and contract labor costs, and other operational costs.
Previous report
Selling, general and administrative expenses increased from $61.8 million for the six months ended June 30, 2024 to $62.4 million for the six months ended June 30, 2025. The increase was primarily driven by a $2.9 million expense associated with the settlement of the Lavin Action and a $2.5 million increase in cash compensation and other employee benefit costs. These increases were partially offset by a $4.2 million decrease in stock-based compensation.
Previous report
Income Tax Expense (Benefit)
Reworded paragraphs (21)
Previous wording
On July 18, 2025, plaintiffs and defendants executed a Memorandum of Understanding outlining the terms of a settlement to resolve all claims in the putative class action complaint filed against us in the action entitled Lavin v. Virgin Galactic Holdings, Inc. (“Lavin Action”). See Note 12 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information. We are currently working on the final settlement agreement to submit to the Court for final approval and expect to make all payments by the end of 2025.
Current wording
On July 18, 2025, plaintiffs and defendants executed a Memorandum of Understanding outlining the terms of a settlement to resolve all claims in the putative class action complaint filed against us in the action entitled Lavin v. Virgin Galactic Holdings, Inc. (“Lavin Action”). See Note 12 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information. We have reached a preliminary settlement and are awaiting final approval of the settlement by the Court. We expect to make all payments in connection with the settlement in early 2026.
Previous wording
We have already received significant interest from potential astronauts. Going forward, we expect the size of our backlog and the number of astronauts that have flown to space on our spaceflight system to be an important indicator of our future performance. Our sales remain paused, but we expect to open tranches of sales reservations in the first quarter of 2026 as we approach the start of commercial service. As of June 30, 2025, we have reservations for spaceflights for approximately 675 future astronauts, which represent approximately $190 million in expected future spaceflight revenue upon completion of the spaceflights.
Current wording
We have already received significant interest from potential astronauts. Going forward, we expect the size of our backlog and the number of astronauts that have flown to space on our spaceflight system to be an important indicator of our future performance. Our sales remain paused, but we expect to open tranches of sales reservations in the first quarter of 2026 as we approach the start of commercial service. As of September 30, 2025, we have reservations for spaceflights for approximately 675 future astronauts, which represent approximately$189 million in expected future spaceflight revenue upon completion of the spaceflights.
Previous wording
For the Three and Six Months Ended June 30, 2025 Compared to the Three and Six Months Ended June 30, 2024
Current wording
For the Three and Nine Months Ended September 30, 2025 Compared to the Three and Nine Months Ended September 30, 2024
Previous wording
Revenue for the three and six months ended June 30, 2025 was primarily attributable to access fees related to our astronaut community. Revenue for the three and six months ended June 30, 2024 was primarily attributable to revenue generated from our commercial spaceflights and access fees related to our astronaut community.
Current wording
Revenue for the three and nine months ended September 30, 2025 was primarily attributable to access fees related to our astronaut community. Revenue for the three months ended September 30, 2024 was primarily attributable to access fees related to our astronaut community. Revenue for the nine months ended September 30, 2024 was primarily attributable to revenue generated from our commercial spaceflights and access fees related to our astronaut community.
Previous wording
Research and development expenses decreased from $41.5 million for the three months ended June 30, 2024 to $20.1 million for the three months ended June 30, 2025. The decrease was primarily driven by a $19.2 million decrease in sub-contractor and contract labor costs associated with the development of our next generation spaceflight vehicles and a $1.8 million decrease in cash compensation and other employee benefit costs.
Current wording
Research and development expenses decreased from $23.9 million for the three months ended September 30, 2024 to $15.0 million for the three months ended September 30, 2025. The decrease was primarily driven by a $7.2 million decrease in sub-contractor and contract labor costs associated with the development of our next generation spaceflight vehicles and a $1.7 million decrease in cash compensation and other employee benefit costs.
Previous wording
Research and development expenses decreased from $100.5 million for the six months ended June 30, 2024 to $53.4 million for the six months ended June 30, 2025. The decrease was primarily driven by a $36.7 million decrease in sub-contractor and contract labor costs associated with the development of our next generation spaceflight vehicles and a $10.4 million decrease in cash compensation and other employee benefit costs.
Current wording
Research and development expenses decreased from $124.4 million for the nine months ended September 30, 2024 to $68.4 million for the nine months ended September 30, 2025. The decrease was primarily driven by a $45.8 million decrease in sub-contractor and contract labor costs associated with the development of our next generation spaceflight vehicles and a $12.1 million decrease in cash compensation and other employee benefit costs.
Previous wording
Selling, general and administrative expenses decreased from $33.9 million for the three months ended June 30, 2024 to $31.9 million for the three months ended June 30, 2025. The decrease was primarily driven by a $2.2 million decrease in stock-based compensation, a $1.4 million decrease in professional fees and a $1.4 million decrease in outside services and other corporate costs. These decreases were partially offset by a $2.9 million expense associated with the settlement of the Lavin Action.
Current wording
Selling, general and administrative expenses decreased from $95.8 million for the nine months ended September 30, 2024 to $90.4 million for the nine months ended September 30, 2025. The decrease was primarily driven by a $6.1 million decrease in stock-based compensation and a $3.9 million decrease in professional fees. These decreases were partially offset by a $2.6 million increase in cash compensation and other employee benefit costs and a $2.4 million expense associated with the settlement of the Lavin Action.
Previous wording
Depreciation and amortization expense increased from $3.3 million for the three months ended June 30, 2024 to $4.2 million for the three months ended June 30, 2025. Depreciation and amortization expense increased from $7.0 million for the six months ended June 30, 2024 to $8.4 million for the six months ended June 30, 2025. The increases were primarily due to the acquisition of property, plant and equipment.
Current wording
Depreciation and amortization expense decreased from $4.3 million for the three months ended September 30, 2024 to $4.1 million for the three months ended September 30, 2025. The decrease was primarily due to older assets becoming fully depreciated. Depreciation and amortization expense increased from $11.3 million for the nine months ended September 30, 2024 to $12.5 million for the nine months ended September 30, 2025. The increase was primarily due to the acquisition of property, plant and equipment.
Previous wording
Interest income decreased from $11.1 million for the three months ended June 30, 2024 to $5.8 million for the three months ended June 30, 2025. Interest income decreased from $23.4 million for the six months ended June 30, 2024 to $13.0 million for the six months ended June 30, 2025. These decreases were primarily driven by decreased average balances of marketable securities and deposits in interest-bearing accounts.
Current wording
Interest income decreased from $10.4 million for the three months ended September 30, 2024 to $5.0 million for the three months ended September 30, 2025. Interest income decreased from $33.8 million for the nine months ended September 30, 2024 to $18.0 million for the nine months ended September 30, 2025. These decreases were primarily driven by decreased average balances of marketable securities and deposits in interest-bearing accounts.
Previous wording
Interest expense was $3.2 million for each of the three months ended June 30, 2025 and 2024. Interest expense was $6.5 million for each of the six months ended June 30, 2025 and 2024. Interest expense primarily consists of interest expense and amortization of debt issuance costs related to our convertible senior notes.
Current wording
Interest expense was $3.3 million and $3.2 million for the three months ended September 30, 2025 and 2024, respectively. Interest expense was $9.7 million for each of the nine months ended September 30, 2025 and 2024. Interest expense primarily consists of interest expense and amortization of debt issuance costs related to our convertible senior notes.
Previous wording
Income tax expense (benefit) was immaterial for the three and six months ended June 30, 2025 and 2024. We have accumulated net operating losses at the U.S. federal and state levels. We maintain a full valuation allowance against our net U.S. federal and state deferred tax assets. The income tax expense (benefit) is primarily related to corporate income taxes for our operations in the United Kingdom, which operates on a cost-plus arrangement.
Current wording
Income tax expense was immaterial for the three and nine months ended September 30, 2025 and 2024. We have accumulated net operating losses at the U.S. federal and state levels. We maintain a full valuation allowance against our net U.S. federal and state deferred tax assets. The income tax expense is primarily related to corporate income taxes for our operations in the United Kingdom, which operates on a cost-plus arrangement.
Previous wording
As of June 30, 2025, we had cash, cash equivalents and restricted cash of $193.7 million and total marketable securities of $314.0 million. Our principal sources of liquidity have come from sales of our common stock and offering of convertible senior notes ("2027 Notes").
Current wording
As of September 30, 2025, we had cash, cash equivalents and restricted cash of $158.8 million and marketable securities of $264.8 million. Our principal sources of liquidity have come from sales of our common stock and offering of convertible senior notes (“2027 Notes”).
Previous wording
Net cash used in operating activities was $131.4 million for the six months ended June 30, 2025, and consisted primarily of $151.8 million of net losses, adjusted for non-cash items, which primarily included stock-based compensation expense of $9.6 million and depreciation and amortization expense of $8.4 million, partially offset by $4.0 million of accretion of marketable securities purchased at a discount and $5.3 million of net changes in operating assets and liabilities.
Current wording
Net cash used in operating activities was $187.7 million for the nine months ended September 30, 2025, and consisted primarily of $216.2 million of net losses, adjusted for non-cash items, which primarily included stock-based compensation expense of $14.3 million and depreciation and amortization expense of $12.5 million, partially offset by $5.4 million of accretion of marketable securities purchased at a discount and $5.4 million of net changes in operating assets and liabilities.
Previous wording
Net cash used in operating activities was$192.4 million for the six months ended June 30, 2024, and consisted primarily of$195.8 million of net losses, adjusted for non-cash items, which primarily included stock-based compensation expense of$16.5 million and depreciation and amortization expense of$7.0 million, partially offset by$10.0 million of accretion of marketable securities purchased at a discount and$11.8 million of net changes in operating assets and liabilities.
Current wording
Net cash used in operating activities was $271.7 million for the nine months ended September 30, 2024, and consisted primarily of $270.3 million of net losses, adjusted for non-cash items, which primarily included stock-based compensation expense of $24.0 million and depreciation and amortization expense of $11.3 million, partially offset by $14.0 million of accretion of marketable securities purchased at a discount and $25.0 million of net changes in operating assets and liabilities.
Previous wording
Net cash provided by investing activities was$30.6 million for the six months ended June 30, 2025, and consisted primarily of$356.0 million in proceeds from maturities and calls of marketable securities, partially offset by$220.9 million in purchases of marketable securities and $104.4 million in capital expenditures.
Current wording
Net cash provided by investing activities was $29.9 million for the nine months ended September 30, 2025, and consisted primarily of $492.5 million in proceeds from maturities and calls of marketable securities, partially offset by $306.8 million in purchases of marketable securities and $155.9 million in capital expenditures.
Previous wording
Net cash provided by investing activities was$83.7 million for the six months ended June 30, 2024, and consisted primarily of$479.4 million in proceeds from maturities and calls of marketable securities, partially offset by$348.8 million in purchases of marketable securities and$47.5 million in capital expenditures.
Current wording
Net cash provided by investing activities was $116.4 million for the nine months ended September 30, 2024, and consisted primarily of $729.4 million in proceeds from maturities and calls of marketable securities, partially offset by $527.4 million in purchases of marketable securities and $86.1 million in capital expenditures.
Previous wording
Net cash provided by financing activities was$83.6 million for the six months ended June 30, 2025, and consisted primarily of net cash proceeds from the sale and issuance of common stock pursuant to our at-the-market offering program.
Current wording
Net cash provided by financing activities was $105.7 million for the nine months ended September 30, 2025, and consisted primarily of net cash proceeds from the sale and issuance of common stock pursuant to our at-the-market offering program.
Previous wording
Net cash provided by financing activities was$69.9 million for the six months ended June 30, 2024, and consisted primarily of net cash proceeds from the sale and issuance of common stock pursuant to our at-the-market offering program.
Current wording
Net cash provided by financing activities was $106.3 million for the nine months ended September 30, 2024, and consisted primarily of net cash proceeds from the sale and issuance of common stock pursuant to our at-the-market offering program.
Previous wording
During the six months ended June 30, 2025, we sold 22.7 million shares of common stock under the 2024 ATM Program and generated $86.3 million in gross proceeds, before deducting $2.6 million in underwriting discounts, commissions and other expenses.
Current wording
During the nine months ended September 30, 2025, we sold 30.0 million shares of common stock under the 2024 ATM Program and generated $109.2 million in gross proceeds, before deducting $3.2 million in underwriting discounts, commissions and other expenses.
Previous wording
As of June 30, 2025, we sold a total of 26.8 million shares of common stock under the 2024 ATM Program, generating $115.4 million in gross proceeds since its inception, before deducting $3.4 million in underwriting discounts, commissions and other expenses.
Current wording
As of September 30, 2025, we had sold a total of 34.1 million shares of common stock under the 2024 ATM Program, generating $138.3 million in gross proceeds since its inception, before deducting $4.1 million in underwriting discounts, commissions and other expenses.
Previous wording
Beyond the next twelve months, our principal demand for funds will be to sustain our operations, operate our spaceline at Spaceport America in New Mexico, and expand our fleet of spaceships, launch vehicles, and supporting facilities. We expect to generate revenue from our spaceflight program, which is expected to restart in 2026. To the extent this source of capital as well as sources of capital described above are insufficient to meet our needs, we may need to seek additional debt or equity financing.
Current wording
Beyond the next twelve months, our principal demand for funds will be to sustain our operations, operate our spaceline at Spaceport America in New Mexico, and expand our fleet of spaceships, launch vehicles, and supporting facilities. We expect to generate revenue from our spaceflight program, which is expected to commence with spaceflights in the fourth quarter of 2026. To the extent this source of capital as well as sources of capital described above are insufficient to meet our needs, we may need to seek additional debt or equity financing.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Selling, general and administrative expenses decreased from $34.0 million for the three months ended September 30, 2024 to $28.0 million for the three months ended September 30, 2025. The decrease was primarily driven by a $2.9 million decrease in professional fees, a $1.9 million decrease in stock-based compensation and a $1.3 million decrease in outside services and other corporate costs.