SpaceX has reported its first quarterly business update since becoming a publicly traded company in June, showing revenue nearly doubled even as spending surged sharply. The company said revenue rose 92% to $7.8bn (£5.8bn) from a year earlier, while spending increased by more than 550% to $18.3bn, leaving a net loss of $2bn in the first six months of the year.
What did SpaceX say in its first public report?
The company, which builds space rockets and Starlink internet satellites and owns the social media platform X, began trading on the US stock market in June. It said the second-quarter report gives investors their first detailed look at its finances as a public company, and comes amid growing scrutiny of whether the business can turn rapid revenue growth into profit.
Second-source reporting said analysts had expected revenue of $6.93bn and a loss of 26 cents per share, while investors were looking for more insight into the company’s prospects. It also said the stock had fallen 24% since the June debut, erasing nearly $500bn in market cap, and that the shares were down 50% from their peak and trading below the IPO price.
“This report comes at an important time, the share price crashed and burned in recent weeks, it is down 50% from its peak and is trading below its IPO price,” said Kathleen Brooks, research director at XTB. “Unsurprisingly, investors are jittery leading up to this report as it may determine the long-term direction for the stock.”
How have investors reacted?
SpaceX shares fell nearly 9% in after-hours trading after the report, effectively wiping out gains made during the day. Since making history with its largest-ever public listing, and then briefly eclipsing much larger and more established companies like Microsoft and Amazon in total market valuation, SpaceX has struggled to hold on to investor enthusiasm.
The stock has steadily drifted down in price since reaching an on-the-day high of $176 in June. It has been trading lower than its original $135 per share debut price for the last several weeks. The second outlet said the stock had fallen 24% since the IPO, though the company remains under pressure after its sharp post-listing slide.
Why are traders watching the next few weeks?
Investors are also watching for the first “lockup” shares in SpaceX to become available for public trading on Thursday. Lockup shares are usually held by employees and some insiders before a company goes public, and their release can increase the supply of stock in the market.
According to the second source, the amount of stock available for trading on Thursday will be more than double the current amount, which could weaken the share price further. The outlet said SpaceX is a conglomeration of several of Musk’s businesses, including Starlink, xAI, X and the rocket business, and that the only profitable portion is its connectivity arm, Starlink.
It also said SpaceX is not profitable overall, reporting revenue of $18.7bn last year while recording a loss, and that analysts are forecasting revenue of $835m for space, $3.38bn for connectivity and $2.18bn for AI.
What does the wider financial picture show?
The company’s latest results underline the scale of its expansion and the cost of keeping pace with it. While revenue continues to grow quickly, the jump in spending and the reported loss suggest SpaceX is still dependent on investor confidence as it works toward sustained profitability.
For comparison, the second source noted that Meta generated revenue of more than $200bn last year with a net income upwards of $60bn, highlighting how much larger and more profitable some of SpaceX’s listed peers remain.
Key Facts
- SpaceX went public in June and released its first quarterly business report as a listed company.
- Revenue rose 92% to $7.8bn (£5.8bn), while spending increased by more than 550% to $18.3bn.
- The company reported a net loss of $2bn in the first six months of the year.
- Shares fell nearly 9% in after-hours trading after the report.
- Analysts expect more stock to become available for trading on Thursday as lockup shares expire.
