Virgin Galactic Holdings Inc

Virgin Galactic has delayed its first commercial spaceflight to February 2027 while maintaining its projection for positive quarterly cash flow within 2027. CEO Michael Colglazier said the schedule shift stems from modest time duration extensions across hundreds of small installation tasks, with no single issue driving the push. The company reported its recent tranche of spaceflight expeditions at the $750,000 price point was oversubscribed, adding over $50 million to expected future spaceflight revenue, and plans to open a new tranche this fall at higher price points. CFO Douglas Ahrens said Virgin Galactic raised $134 million through its ATM during the second quarter, ended the period with $286 million in cash, cash equivalents, and marketable securities, and reduced the principal balance on its 2027 and 2028 notes by $93 million. Third-quarter revenue is expected to be approximately $400,000, with free cash flow projected between negative $95 million and $100 million, while the company continues to forecast a flight rate of 10 or more spaceflights per month by the end of the second quarter of 2027.

The Federal Aviation Administration has prohibited its employees from purchasing or owning shares in SpaceX following the company's public debut earlier this month. The restriction, reported by Politico citing an internal agency document, stems from the FAA's role in licensing SpaceX's commercial spaceflight operations, including launches and reentries, and requiring the company to conduct investigations into rocket incidents. SpaceX started trading on the Nasdaq on June 12 at $150 per share and was trading at approximately $170 per share on Tuesday afternoon. The ban extends to employees' spouses and minor children, and the FAA updated its prohibited investments list this month to include SpaceX and three other commercial space firms: Blue Origin, Rocket Lab, and Virgin Galactic. The agency reportedly sent an ethics alert to staff on Monday referencing the SpaceX stock restriction and advising workers to review the revised list.