Virgin Galactic (SPCE) just pulled off a gravity-defying move — and it didn’t even need to leave Earth. Shares of the space tourism company jumped 23% after Q1 earnings landed with only $461,000 in revenue. So why the lift-off?
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Virgin Galactic (SPCE) Launches Future Sales Timeline
The real news wasn’t about what Virgin Galactic earned. It was about what it promised. The company said sales of “future astronaut” tickets — spaceflight seats — will reopen in Q1 2026. The first commercial flight using its upgraded Delta fleet is scheduled for Fall 2026.
That timeline was enough to send Virgin Galactic soaring. Shares rose to $4.23 early Friday, up 26%, while the S&P 500 inched just 0.1% higher. Wall Street had only expected around $300,000 in revenue this quarter. That means the earnings beat was small — but the ambition was big.
Delta Class Spaceships Aim for Frequent Flights
Virgin Galactic suspended commercial space operations in 2024 to focus on building the next-gen Delta fleet. Unlike its previous four-passenger crafts, the new ships are designed to carry six and fly more frequently.
The company’s vision is to create a full-fledged “spaceline” — like an airline, but for the stars. Multiple Delta ships. Multiple spaceports. Regular flights.
SPCE Still Faces Long Road to Profitability
Despite the excitement, the numbers remain steep. Virgin Galactic ended the quarter with $567 million in cash, but analysts expect it to burn through $650 million by the end of 2026 before reaching positive free cash flow in 2027. That’s when sales are projected to finally hit $415 million.
For now, full-year 2025 revenue is expected to stay below $2 million. That’s a far cry from the company’s 2019 SPAC-era forecast of $400 million by 2022 — a milestone it missed by miles, delivering just $2 million that year.
SPCE Stock Still in Deep Orbit
Even with Friday’s jump, Virgin Galactic stock is down 43% year to date, and 87% over the past 12 months. The company also executed a 1-for-20 reverse stock split in June 2024 to keep the share price from crashing into penny-stock territory.
Is Virgin Galactic a Good Stock to Buy?
According to TipRanks, SPCE is rated a Hold based on four analyst ratings. Just one is a Buy, while three suggest holding steady. The average SPCE price target is $14.58, which implies a massive 209% upside from the current price of $4.72. Price forecasts range from $3.25 to $36.00, showing a wide spread in sentiment.
But momentum may be shifting.
TD Cowen analyst Oliver Chen reaffirmed a Buy rating on Friday with a price target of $4.50. He cited Virgin’s strategic focus on launching its Delta spaceship fleet, a growing ticket backlog of 675 future astronauts, and a disciplined approach to spending.
Chen noted the company’s robust cash reserves, improving path to free cash flow, and ambition to roll out full-scale spaceport operations in the U.S. by 2028. Despite risks tied to suppliers and the spaceflight industry itself, Chen’s outlook points to confidence in Virgin’s long-haul game.
