(Bloomberg) — Virgin Galactic Holdings Inc. fell after it reported third-quarter revenue below expectations and a stock offering of as much as $300 million to pay for a new space tourism vehicle.
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The company founded by Richard Branson on Wednesday reported revenue of $0.4 million for the period ending September 30, slightly lower than the consensus of $0.53 million among analysts surveyed by Bloomberg. That’s about a 77% decline from $1.7 million in the same period a year ago.
Virgin also announced an at-the-market share program, under which it would occasionally sell shares worth as much as $300 million. The money would be used to accelerate the development and production of its fleet, including a new “mothership” carrier aircraft and Delta Class starships, the company said.
The country burned through about $120 million in cash for a quarter after pausing its space tourism trips. The company expects cash burn to fall below $100 million in the fourth quarter of 2025, Chief Financial Officer Doug Ahrens told analysts on a conference call.
Virgin closed down about 12% at $6.28 in New York on Thursday. Shares are down about 87% this year.
The company’s last flight took place in June, and it has halted further voyages while it worked on its more advanced Delta spacecraft, which is expected to enter commercial service in 2026. That raises questions about the cash burn rate.
The California-based company reported a loss per share of $2.66 in the third quarter. Cash and cash equivalents were $172.4 million, down 25% from a year ago.
Virgin said it has completed initial flight control testing and expects to resume ticket sales about a year before Delta flies. The updated vehicles can accommodate six passengers, two more than the vehicle used on previous trips. The new craft is also designed for faster turnaround time between missions.
Virgin Galactic aims to have a second mothership operational around 2028, which will be used to lift spacecraft to high altitude before they launch into space.
Tickets on Delta are expected to cost $600,000 per seat. Delta will be able to clear the existing backlog of about 700 ticket holders within about a year, the company predicts.
(Updates with details of the equity program in third paragraph, CFO comments in fourth paragraph, share price in fifth paragraph.)
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