Failure To Launch: Why Virgin Galactic Shares Are Falling After Hours

Virgin Galactic Holdings Inc (NYSE: SPCE) shares are trading lower in Thursday's after-hours session after the company reported financial results.

Virgin Galactic reported a first-quarter net loss of $93 million, which was improved from a net loss of $130 million year-over-year. The company reported an adjusted EBITDA loss of $77 million, which was worse than a loss of $56 million in the prior year's quarter. 

Virgin Galactic said its cash position remains strong with $1.22 billion in cash and cash equivalents, restricted cash, and marketable securities. Demand for tickets also remains strong, with approximately 800 future astronaut reservations.

"We look forward to returning to space in the fourth quarter and launching commercial service in the first quarter of next year," said Michael Colglazier, CEO of Virgin Galactic.

The company's VSS Unity test spaceflight is expected to take place in the fourth quarter. Commercial service was slated to start in the fourth quarter, but the commencement target has been moved to the first quarter of 2023 due to supply chain and labor constraints. 

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SPCE 52-Week Range: $6.70 - $57.50

The stock was down 2.66% in after-hours at $7.31.

Photo: courtesy of Virgin Galactic.