收入：22.7 萬美元（去年同期 46.1 萬美元），主要來自太空人社區費用。

spce-20260331FalseQ120260001706946--12-31http://fasb.org/us-gaap/2025#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2025#OtherAssetsNoncurrentxbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:purespce:planspce:allegedShareholder00017069462026-01-012026-03-3100017069462026-05-0700017069462026-03-3100017069462025-12-3100017069462025-01-012025-03-310001706946us-gaap:CommonStockMember2024-12-310001706946us-gaap:AdditionalPaidInCapitalMember2024-12-310001706946us-gaap:RetainedEarningsMember2024-12-310001706946us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-3100017069462024-12-310001706946us-gaap:RetainedEarningsMember2025-01-012025-03-310001706946us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-03-310001706946us-gaap:AdditionalPaidInCapitalMember2025-01-012025-03-310001706946us-gaap:CommonStockMember2025-01-012025-03-310001706946us-gaap:CommonStockMember2025-03-310001706946us-gaap:AdditionalPaidInCapitalMember2025-03-310001706946us-gaap:RetainedEarningsMember2025-03-310001706946us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-03-3100017069462025-03-310001706946us-gaap:CommonStockMember2025-12-310001706946us-gaap:AdditionalPaidInCapitalMember2025-12-310001706946us-gaap:RetainedEarningsMember2025-12-310001706946us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-12-310001706946us-gaap:RetainedEarningsMember2026-01-012026-03-310001706946us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-01-012026-03-310001706946us-gaap:AdditionalPaidInCapitalMember2026-01-012026-03-310001706946us-gaap:CommonStockMember2026-01-012026-03-310001706946us-gaap:CommonStockMember2026-03-310001706946us-gaap:AdditionalPaidInCapitalMember2026-03-310001706946us-gaap:RetainedEarningsMember2026-03-310001706946us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-03-310001706946spce:AtTheMarketOfferingMember2026-01-012026-03-310001706946spce:AtTheMarketOfferingMember2025-01-012025-03-310001706946us-gaap:WarrantMember2026-01-012026-03-310001706946us-gaap:WarrantMember2025-01-012025-03-310001706946us-gaap:CashMember2026-03-310001706946us-gaap:MoneyMarketFundsMember2026-03-310001706946us-gaap:USTreasurySecuritiesMember2026-03-310001706946us-gaap:CorporateBondSecuritiesMember2026-03-310001706946us-gaap:CashMember2025-12-310001706946us-gaap:MoneyMarketFundsMember2025-12-310001706946us-gaap:USTreasurySecuritiesMember2025-12-310001706946us-gaap:CorporateBondSecuritiesMember2025-12-310001706946us-gaap:LandMember2026-03-310001706946us-gaap:LandMember2025-12-310001706946us-gaap:BuildingMember2026-03-310001706946us-gaap:BuildingMember2025-12-310001706946us-gaap:AirTransportationEquipmentMember2026-03-310001706946us-gaap:AirTransportationEquipmentMember2025-12-310001706946us-gaap:MachineryAndEquipmentMember2026-03-310001706946us-gaap:MachineryAndEquipmentMember2025-12-310001706946spce:ITSoftwareAndEquipmentMember2026-03-310001706946spce:ITSoftwareAndEquipmentMember2025-12-310001706946us-gaap:LeaseholdImprovementsMember2026-03-310001706946us-gaap:LeaseholdImprovementsMember2025-12-310001706946us-gaap:ConstructionInProgressMember2026-03-310001706946us-gaap:ConstructionInProgressMember2025-12-310001706946spce:A2027NotesMemberus-gaap:ConvertibleDebtMember2025-12-310001706946spce:RegisteredOfferingMember2025-12-012025-12-310001706946spce:PreFundedWarrantsMemberspce:RegisteredOfferingMember2025-12-012025-12-310001706946spce:PreFundedWarrantsMemberus-gaap:CommonStockMember2025-12-012026-03-310001706946spce:A2028NotesMemberspce:FirstLienNotesMember2025-12-310001706946spce:PurchaseWarrantsMemberspce:A2028NotesMember2025-12-310001706946spce:A2028NotesMemberspce:FirstLienNotesMember2026-03-310001706946spce:A2027NotesMemberus-gaap:ConvertibleDebtMember2026-03-310001706946us-gaap:ConvertibleDebtMember2026-01-012026-03-310001706946us-gaap:ConvertibleDebtMember2025-01-012025-03-310001706946spce:A2028NotesMembersrt:ScenarioForecastMember2026-09-302026-09-300001706946spce:A2028NotesMembersrt:ScenarioForecastMember2027-12-312027-12-310001706946spce:A2027NotesMember2022-01-310001706946spce:A2027NotesMemberus-gaap:ConvertibleDebtMember2022-01-310001706946spce:A2024AtTheMarketOfferingProgramMember2024-11-300001706946spce:A2024AtTheMarketOfferingProgramMember2026-01-012026-03-310001706946spce:A2024AtTheMarketOfferingProgramMember2024-11-012026-03-310001706946spce:AmendedInducementPlanMember2026-01-012026-03-310001706946spce:AmendedInducementPlanMember2026-03-310001706946spce:SpacelineOperationsMember2026-01-012026-03-310001706946spce:SpacelineOperationsMember2025-01-012025-03-310001706946us-gaap:ResearchAndDevelopmentExpenseMember2026-01-012026-03-310001706946us-gaap:ResearchAndDevelopmentExpenseMember2025-01-012025-03-310001706946us-gaap:SellingGeneralAndAdministrativeExpensesMember2026-01-012026-03-310001706946us-gaap:SellingGeneralAndAdministrativeExpensesMember2025-01-012025-03-310001706946us-gaap:RestrictedStockUnitsRSUMember2026-03-310001706946us-gaap:PerformanceSharesMember2026-03-310001706946us-gaap:RestrictedStockUnitsRSUMember2026-01-012026-03-310001706946us-gaap:PerformanceSharesMember2026-01-012026-03-310001706946us-gaap:StockCompensationPlanMember2026-01-012026-03-310001706946us-gaap:StockCompensationPlanMember2025-01-012025-03-310001706946us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2026-03-310001706946us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2026-03-310001706946us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2026-03-310001706946us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2026-03-310001706946us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2026-03-310001706946us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2026-03-310001706946us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2026-03-310001706946us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2026-03-310001706946us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2026-03-310001706946us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2026-03-310001706946us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2026-03-310001706946us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2026-03-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2026-03-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2026-03-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2026-03-310001706946us-gaap:FairValueMeasurementsRecurringMember2026-03-310001706946us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2025-12-310001706946us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2025-12-310001706946us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2025-12-310001706946us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2025-12-310001706946us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2025-12-310001706946us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2025-12-310001706946us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2025-12-310001706946us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2025-12-310001706946us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2025-12-310001706946us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2025-12-310001706946us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2025-12-310001706946us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2025-12-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2025-12-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2025-12-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2025-12-310001706946us-gaap:FairValueMeasurementsRecurringMember2025-12-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberspce:A2028NotesMember2026-03-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberspce:A2028NotesMember2026-03-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberspce:A2028NotesMember2026-03-310001706946spce:A2028NotesMemberus-gaap:FairValueMeasurementsRecurringMember2026-03-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberspce:A2027NotesMember2026-03-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberspce:A2027NotesMember2026-03-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberspce:A2027NotesMember2026-03-310001706946spce:A2027NotesMemberus-gaap:FairValueMeasurementsRecurringMember2026-03-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberspce:A2028NotesMember2025-12-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberspce:A2028NotesMember2025-12-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberspce:A2028NotesMember2025-12-310001706946spce:A2028NotesMemberus-gaap:FairValueMeasurementsRecurringMember2025-12-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberspce:A2027NotesMember2025-12-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberspce:A2027NotesMember2025-12-310001706946us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberspce:A2027NotesMember2025-12-310001706946spce:A2027NotesMemberus-gaap:FairValueMeasurementsRecurringMember2025-12-310001706946spce:LavinActionMember2025-01-012025-12-310001706946spce:LavinActionMember2025-07-182025-07-180001706946spce:SpiteriGrenierLaidlawAndSt.JeanMember2022-02-212024-07-110001706946spce:SpiteriGrenierLaidlawAndSt.JeanMembersrt:ScenarioForecastMember2026-01-012026-12-310001706946srt:AffiliatedEntityMember2026-01-012026-03-310001706946srt:AffiliatedEntityMember2025-01-012025-03-310001706946spce:A2028NotesMemberus-gaap:SubsequentEventMember2026-04-302026-04-300001706946spce:A2024AtTheMarketOfferingProgramMemberus-gaap:SubsequentEventMember2026-04-012026-04-30

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026 
OR

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to 
Commission File No. 001-38202
Virgin Galactic Holdings, Inc.
(Exact name of registrant as specified in its charter)

Delaware
85-3608069
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)

1700 Flight Way
Tustin, California 
92782
(Address of Principal Executive Offices)(Zip Code)

(949) 774-7640

(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, $0.0001 par value per share
SPCE
New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer☐Accelerated filer☐
Non-accelerated filer☒Smaller reporting company☒
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒
As of May 7, 2026, there were 100,683,438 shares of the Company’s common stock outstanding.

Table of Contents

VIRGIN GALACTIC HOLDINGS, INC.
TABLE OF CONTENTS

Page
PART I - FINANCIAL INFORMATION

Cautionary Note Regarding Forward-Looking Statements
2

Item 1.
Financial Statements (Unaudited)
4

Condensed Consolidated Balance Sheets
4

Condensed Consolidated Statements of Operations and Comprehensive Loss
5

Condensed Consolidated Statements of Stockholders’ Equity
6

Condensed Consolidated Statements of Cash Flows
7

Notes to Condensed Consolidated Financial Statements
8

Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
23

Item 3.
Quantitative and Qualitative Disclosures about Market Risk
29

Item 4.
Controls and Procedures
29

PART II - OTHER INFORMATION

Item 1.
Legal Proceedings
30

Item 1A.
Risk Factors
30

Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
30

Item 3.
Defaults Upon Senior Securities
30

Item 4.
Mine Safety Disclosures
30

Item 5.
Other Information
30

Item 6.
Exhibits
30

Signatures
32

1

Table of Contents

Cautionary Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning us and other matters. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of management, as well as assumptions made by, and information currently available to management.

Forward-looking statements may be accompanied by words such as “achieve,” “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “future,” “grow,” “increase,” “intend,” “may,” “opportunity,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” or similar words, phrases, or expressions. These forward-looking statements are subject to various risks and uncertainties, many of which are outside our control. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the following:

•any delay in future commercial flights of our spaceflight fleet;

•our ability to successfully develop and test our next-generation vehicles, and the time and costs associated with doing so;

•the safety of our spaceflight systems;

•the development of the markets for commercial spaceflight and commercial research and development payloads;

•our ability to effectively market and sell spaceflights;

•our ability to convert our backlog or inbound inquiries into revenue;

•our anticipated full passenger capacity;

•our ability to achieve or maintain profitability;

•delay in development or the manufacture of spaceflight systems;

•our ability to supply our technology to additional market opportunities;

•our expected capital requirements, the availability of additional financing and our ability to continue as a going concern;

•our ability to attract or retain highly qualified personnel;

•the effect of terrorist activity, armed conflict, natural disasters or pandemic diseases on the economy generally, on our future financial or operational results, or our access to additional financing;

•consumer preferences and discretionary purchasing activity, which can be significantly adversely affected by unfavorable economic or market conditions;

•extensive and evolving government regulations that impact the way we operate, including the potential negative effects of changes in United States tariff and import/export regulations;

•risks associated with international expansion;

•our expectations regarding the resolution of certain legal proceedings, including anticipated settlement amounts and timing, which may be subject to change based on various factors, including court approvals and negotiations with involved parties;

2

Table of Contents

•our ability to maintain effective internal control over financial reporting and disclosure and procedures; and

•our ability to continue to use, maintain, enforce, protect and defend our owned and licensed intellectual property, including the Virgin brand.
Additional factors that may cause actual results to differ materially from current expectations include, among other things, those set forth in Part I, Item 1.“Business,” Part I, Item 1A. “Risk Factors,” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “Annual Report on Form 10-K”) and in Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Quarterly Report on Form 10-Q. Although we believe that the expectations reflected in the forward-looking statements are reasonable, our information may be incomplete or limited, and we cannot guarantee future results. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.
Each of the terms the “Company,” “Virgin Galactic,” “we,” “our,” “us” and similar terms used herein refer collectively to Virgin Galactic Holdings, Inc., a Delaware corporation, and its consolidated subsidiaries, unless otherwise stated.

3

Table of Contents

PART I. FINANCIAL INFORMATION

VIRGIN GALACTIC HOLDINGS, INC.
Condensed Consolidated Balance Sheets
(Unaudited; in thousands, except share and per share amounts)

March 31, 2026December 31, 2025
Assets
Current assets:
Cash and cash equivalents$124,837 $144,727 
Restricted cash30,634 30,988 
Marketable securities
95,054 162,313 
Other current assets32,931 34,870 
Total current assets283,456 372,898 

Property, plant and equipment, net426,713 388,730 
Other non-current assets40,060 41,551 
Total assets$750,229 $803,179 
Liabilities and Stockholders’ Equity

Current liabilities:
Accounts payable$17,041 $15,163 
Current portion of long-term debt
117,041 47,830 
Customer deposits77,954 78,535 
Other current liabilities70,578 67,795 
Total current liabilities282,614 209,323 
Non-current liabilities:
Long-term debt
202,695 276,362 
Other long-term liabilities
41,191 43,530 
Total liabilities526,500 529,215 
Commitments and contingencies (Note 14)

Stockholders’ Equity

Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding
— — 
Common stock, $0.0001 par value; 700,000,000 shares authorized; 81,409,340 and 73,326,504 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively
8 7 
Additional paid-in capital3,040,171 3,025,604 
Accumulated deficit(2,816,494)(2,751,779)
Accumulated other comprehensive income44 132 
Total stockholders’ equity
223,729 273,964 
Total liabilities and stockholders’ equity
$750,229 $803,179 
 
See accompanying notes to condensed consolidated financial statements.
4

Table of Contents

VIRGIN GALACTIC HOLDINGS, INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited; in thousands, except per share amounts)

Three Months Ended March 31,
20262025
Revenue$227 $461 

Operating expenses:
Spaceline operations29,640 20,826 
Research and development6,712 33,310 
Selling, general and administrative25,551 30,550 
Depreciation and amortization3,916 4,223 
Total operating expenses65,819 88,909 

Operating loss(65,592)(88,448)

Interest income2,701 7,215 
Interest expense(1,828)(3,240)

Other income, net34 34 
Loss before income taxes(64,685)(84,439)
Income tax expense30 48 
Net loss(64,715)(84,487)
Other comprehensive loss:

Foreign currency translation adjustment(3)(4)
Unrealized loss on marketable securities
(85)(176)
Total comprehensive loss$(64,803)$(84,667)

Net loss per share:
Basic and diluted$(0.81)$(2.38)

Weighted-average shares outstanding:
Basic and diluted79,482 35,440 

See accompanying notes to condensed consolidated financial statements.
5

Table of Contents

VIRGIN GALACTIC HOLDINGS, INC.
Condensed Consolidated Statements of Stockholders’ Equity    
(Unaudited; in thousands, except share amounts)

Common StockAdditional Paid-in CapitalAccumulated DeficitAccumulated Other Comprehensive 
Income (Loss)Total
SharesAmount
Balance at December 31, 2024
32,995,822$3 $2,794,871 $(2,472,872)$278 $322,280 
Net loss— — — (84,487)— (84,487)
Other comprehensive loss— — — — (180)(180)
Stock-based compensation for equity-classified awards— — 4,833 — — 4,833 
Issuance of common stock pursuant to stock-based awards, net of withholding taxes49,040 — (50)— — (50)
Issuance of common stock pursuant to at-the-market offering6,946,164 1 30,729 — — 30,730 
Transaction costs— — (955)— — (955)
Balance at March 31, 2025
39,991,026 4 2,829,428 (2,557,359)98 272,171 

Common StockAdditional Paid-in CapitalAccumulated DeficitAccumulated Other Comprehensive 
Income (Loss)Total
SharesAmount
Balance at December 31, 2025
73,326,504$7 $3,025,604 $(2,751,779)$132 $273,964 
Net loss — — — (64,715)— (64,715)
Other comprehensive loss— — — — (88)(88)
Stock-based compensation for equity-classified awards— — 3,928 — — 3,928 
Issuance of common stock pursuant to stock-based awards, net of withholding taxes 6,140 — (8)— — (8)
Issuance of common stock pursuant to at-the-market offering3,970,640 — 10,961 — — 10,961 
Exercises of Pre-Funded Warrants
4,106,056 1 — — — 1 
Transaction costs — — (314)— — (314)
Balance at March 31, 2026
81,409,340 8 3,040,171 (2,816,494)44 223,729 

See accompanying notes to condensed consolidated financial statements.
6

Table of Contents

VIRGIN GALACTIC HOLDINGS, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited; in thousands)

Three Months Ended March 31,
20262025
Cash flows from operating activities:
Net loss$(64,715)$(84,487)
Stock-based compensation4,121 4,769 
Depreciation and amortization3,916 4,223 
Amortization of debt issuance costs511 569 
Accretion of marketable securities purchased at a discount(406)(2,193)
Other non-cash items(11)(14)
Change in operating assets and liabilities:
Other current and non-current assets
1,300 5,749 
Accounts payable
840 (751)
Customer deposits(581)(2,296)
Other current and non-current liabilities
1,524 (1,487)
Net cash used in operating activities(53,501)(75,918)
Cash flows from investing activities:
Capital expenditures(39,807)(46,047)
Purchases of marketable securities(33,516)(104,607)
Proceeds from maturities and calls of marketable securities101,099 158,121 
Other investing activities
— 8 
Net cash provided by investing activities
27,776 7,475 
Cash flows from financing activities:
Payments of long-term debt
(4,967)— 
Payments of finance lease obligations(59)(46)
Proceeds from issuance of common stock pursuant to at-the-market offering
10,961 30,730 
Transaction costs related to issuance of common stock pursuant to at-the-market offering
(301)(922)
Transaction costs related to issuance of common stock and equity-classified warrants pursuant to registered offering
(145)— 
Withholding taxes paid on behalf of employees on net settled stock-based awards(8)(50)

Net cash provided by financing activities5,481 29,712 
Net decrease in cash, cash equivalents and restricted cash
(20,244)(38,731)
Cash, cash equivalents and restricted cash at beginning of period175,715 210,885 
Cash, cash equivalents and restricted cash at end of period$155,471 $172,154 

Cash and cash equivalents$124,837 $140,763 
Restricted cash30,634 31,391 
Cash, cash equivalents and restricted cash$155,471 $172,154 

See accompanying notes to condensed consolidated financial statements.
7

Table of Contents
VIRGIN GALACTIC HOLDINGS, INC.
Notes to Condensed Consolidated Financial Statements

(1)    Description of Business and Basis of Presentation
Virgin Galactic Holdings, Inc., together with its consolidated subsidiaries (“Virgin Galactic” or the “Company”), is an aerospace and space travel company focused on the development, manufacture and operation of spaceships and related technologies. The Company provides access to space for private individuals, researchers and government agencies. The Company’s missions include flying passengers to space, as well as flying scientific payloads and researchers to space in order to conduct experiments for scientific and educational purposes.
The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial reporting. Certain information and footnote disclosures, normally included in annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), have been condensed or omitted pursuant to such rules and regulations. However, in management’s opinion, the condensed consolidated financial statements reflect all adjustments, including those of a normal recurring nature, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods presented.
The operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the entire fiscal year. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. There have been no changes to the significant accounting policies presented in the audited consolidated financial statements contained in the Annual Report on Form 10-K that would have a material impact on the accompanying condensed consolidated financial statements.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates.

(2)    Liquidity and Financial Condition
The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern and will be able to realize its assets and satisfy its liabilities in the normal course of business.
The Company is currently in the pre-commercial service phase and accordingly has no spaceflight revenue. The Company has recently used significant cash for operating activities and capital expenditures primarily related to the development of its next-generation spaceships and expects to continue to incur significant operating expenses and capital expenditures to complete the production of these spaceships and place them into commercial operation. 
In preparation of the condensed consolidated financial statements, management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for twelve months from the date the condensed consolidated financial statements are issued, in accordance with the requirements of the Financial Accounting Standards Board's Accounting Standards Codification (“ASC”) Topic 205-40, Presentation of Financial Statements - Going Concern (“ASC 205-40”). 
Factors, among others, that are included in management’s evaluation are:
•cash, cash equivalents, and marketable securities on hand as of the date the condensed consolidated financial statements are issued;
•all company costs that are forecasted to be incurred over the upcoming twelve months from the date the condensed consolidated financial statements are issued, including costs expected to be incurred in completing fabrication and testing of the next-generation spaceships and costs expected to be incurred in the ramp-up to, and commercial operation of, spaceflights; and
8

Table of Contents
VIRGIN GALACTIC HOLDINGS, INC.
Notes to Condensed Consolidated Financial Statements

•all contractual debt payments due within the next twelve months are assumed to be settled in cash.
Items that are planned or expected by management, but the execution of which may not be fully under management’s control, are not included in management’s evaluation in accordance with ASC 205-40. Factors, among others, excluded from management’s evaluation include:
•Revenues: any revenues or cash receipts, from spaceflights or otherwise, planned during the upcoming twelve months.
•Capital Market Transactions: any proceeds from capital market transactions, whether from debt issuance, equity issuance, or otherwise.
•Debt Repayment Terms: any change of contractual debt repayment schedules or settlement methods.
Management’s evaluation, which excluded the items that are not within its control (i.e., Revenues, Capital Market Transactions, and Debt Repayment Terms), resulted in the determination that the Company may not have sufficient cash and marketable securities to maintain its planned operations for the next twelve months following the issuance date of the condensed consolidated financial statements and has concluded that there are conditions present in the aggregate that raise substantial doubt about the Company’s ability to continue as a going concern pursuant to ASC 205-40. 
Management’s plans that are intended to mitigate the conditions or events that raise substantial doubt include implementing some or all of the following initiatives:
•Commencing commercial service in the fourth quarter of 2026, as currently planned. 
•Generating significant cash from the current backlog of future astronauts as their final payments become due in advance of their spaceflight. 
•Offering the sale of a limited number of early spaceflights at a premium to historical prices.
•Increasing cash on hand through additional debt or equity financing, including use of the Company’s existing “at-the-market” equity offering program.
•Partnering with third parties to fund and accelerate the pace of future space vehicle development.
•Settling debt through the issuance of equity and/or extending maturities of certain debt payments that are due within the period.
The plans discussed above are subject to market conditions and, while management intends to apply its best efforts to the execution of these plans, they are not fully within the Company’s control and therefore cannot be deemed to be probable in accordance with ASC 205-40, and as a result, management has concluded that its plans do not alleviate substantial doubt about the Company’s ability to continue as a going concern for twelve months after the date that the condensed consolidated financial statements are issued.
The accompanying condensed consolidated financial statements do not include any adjustments related to the carrying amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern.
9

Table of Contents
VIRGIN GALACTIC HOLDINGS, INC.
Notes to Condensed Consolidated Financial Statements

(3)    Cash, Cash Equivalents and Marketable Securities
The Company maintains certain cash balances restricted as to withdrawal or use. Restricted cash consists of cash deposits received from future astronauts that are contractually restricted for operational use until the condition of carriage is signed or the deposits are refunded.
The amortized cost, unrealized gain and estimated fair value of the Company’s cash, cash equivalents and marketable securities are as follows:

March 31, 2026
Amortized CostGross Unrealized Loss
Fair Value
(In thousands)
Cash and cash equivalents:
Cash and restricted cash$17,910 $— $17,910 
Money market137,561 — 137,561 
Marketable securities:
U.S. treasuries59,610 (6)59,604 
Corporate bonds35,472 (22)35,450 
$250,553 $(28)$250,525 

December 31, 2025
Amortized CostGross Unrealized Gain
Fair Value
(In thousands)
Cash and cash equivalents:
Cash and restricted cash$7,687 $— $7,687 
Money market168,028 — 168,028 
Marketable securities:
U.S. treasuries9,884 14 9,898 
Corporate bonds152,372 43 152,415 
$337,971 $57 $338,028 

Interest receivable of $1.0 million and $2.0 million is included in other current assets in the accompanying condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025, respectively.
The Company recognizes amortization and accretion of purchase premiums and discounts on its marketable securities in interest income in the accompanying condensed consolidated statements of operations and comprehensive loss. The Company recognized $0.4 million and $2.2 million in accretion income for its marketable securities for the three months ended March 31, 2026 and 2025, respectively.
10

Table of Contents
VIRGIN GALACTIC HOLDINGS, INC.
Notes to Condensed Consolidated Financial Statements

(4)    Property, Plant and Equipment, Net
Property, plant and equipment consists of the following:

March 31, 2026December 31, 2025
(In thousands)
Land$1,302 $1,302 
Buildings10,111 10,111 
Flight vehicles and rotables5,177 4,331 
Machinery and equipment45,311 44,913 
Information technology software and equipment55,839 52,130 
Leasehold improvements78,118 77,853 
Construction in progress339,337 302,726 
535,195 493,366 
Less: accumulated depreciation and amortization
108,482 104,636 
$426,713 $388,730 

(5)    Leases
The components of expense related to leases are as follows:

Three Months Ended March 31,
20262025
(In thousands)
Operating lease cost$2,911 $3,399 
Variable lease cost693 707 

Finance lease cost:
Amortization of assets under finance leases
56 51 
Interest on finance lease liabilities11 15 
Total finance lease cost67 66 
Total lease cost$3,671 $4,172 

11

Table of Contents
VIRGIN GALACTIC HOLDINGS, INC.
Notes to Condensed Consolidated Financial Statements

The components of supplemental cash flow information related to leases are as follows: 

Three Months Ended March 31,
20262025
(In thousands, except term and rate data)
Cash Flow Information:
Operating cash flows for operating leases$3,579 $3,455 
Operating cash flows for finance leases$11 $15 
Financing cash flows for finance leases
$59 $46 

Non-cash Activity:
Assets acquired in exchange for lease obligations:
Operating leases$2 $— 
Finance leases$— $5 

Other Information:
Weighted-average remaining lease term:

Operating leases (in years)6.88.5
Finance leases (in years)2.02.4

Weighted-average discount rates:

Operating leases12.4 %12.2 %
Finance leases13.8 %13.3 %

The supplemental balance sheet information related to leases is as follows:

March 31, 2026December 31, 2025
(In thousands)
Operating Leases:
Long-term right-of-use assets$35,430 $36,882 

Short-term operating lease liabilities$8,726 $8,475 
Long-term operating lease liabilities39,964 42,279 
Total operating lease liabilities$48,690 $50,754 

Right-of-use assets are included in other non-current assets, and lease liabilities are included in other current liabilities and other long-term liabilities in the accompanying condensed consolidated balance sheets.

12

Table of Contents
VIRGIN GALACTIC HOLDINGS, INC.
Notes to Condensed Consolidated Financial Statements

(6)    Other Current Liabilities
The components of other current liabilities are as follows:

March 31, 2026December 31, 2025
(In thousands)
Accrued compensation$33,969 $31,951 
Accrued manufacturing sub-contractor and contract labor costs10,350 9,601 

Other26,259 26,243 
$70,578 $67,795 

(7)    2025 Capital Realignment Transactions
In December 2025, the Company completed privately negotiated repurchase agreements (the “2027 Notes Repurchase Agreements”) with a limited number of holders of its 2.50% convertible senior notes due 2027 (“2027 Notes”), pursuant to which the Company repurchased $354.6 million in aggregate principal amount of its 2027 Notes (the “Repurchases”) with cash proceeds received from the Registered Offering (as defined below) and the Private Placement (as defined below).
Concurrently with the Repurchases, the Company completed the issuance and sale for cash in a registered direct offering, pursuant to separate, privately negotiated subscription agreements with certain investors, of (i) 2.2 million shares of its common stock, and (ii) pre-funded warrants (the “Pre-Funded Warrants”) to purchase 8.4 million shares of its common stock (collectively, the “Registered Offering”). In connection with the Registered Offering, the Company received cash proceeds of $45.6 million.
As of March 31, 2026, all Pre-Funded Warrants had been exercised and 8.4 million shares of common stock had been issued in connection with the exercise of the Pre-Funded Warrants.
Concurrently with the Registered Offering, the Company issued and sold for cash, in a private placement, (i) $212.5 million aggregate principal amount of a new series of its 9.80% First Lien Notes due 2028 (“2028 Notes”) and (ii) warrants to purchase 31.7 million shares of its common stock (the “Purchase Warrants”), with an exercise price equal to $6.696 per share. The Purchase Warrants are exercisable at any time on or after June 18, 2026 until December 18, 2030. The Purchase Warrants are exercisable only for cash and are subject to appropriate adjustment in the event of cash or share dividends, share splits, share repurchases, reorganizations or similar events affecting the Company’s common stock.

(8)    Long-Term Debt
A summary of the components of long-term debt is as follows:

March 31, 2026December 31, 2025
( In thousands)
2028 Notes$212,496 $212,496 
2027 Notes70,421 70,421 
Total contractual debt outstanding 
282,917 282,917 
Unamortized debt premium
40,724 45,691 
Unamortized debt issuance costs
(3,905)(4,416)
Long-term debt
319,736 324,192 
Less: current portion of long-term debt117,041 47,830 
Non-current portion of long-term debt
$202,695 $276,362 

13

Table of Contents
VIRGIN GALACTIC HOLDINGS, INC.
Notes to Condensed Consolidated Financial Statements

During the three months ended March 31, 2026 and 2025, the Company recognized $1.8 million and $3.2 million of interest expense related to long-term debt, respectively. Interest expense included $0.5 million and $0.6 million of amortized debt issuance costs during the three months ended March 31, 2026 and 2025, respectively.
During the three months ended March 31, 2026, the Company recognized $5.0 million of amortization of debt premium in connection with certain interest payments. This amount has been presented as a payment of long-term debt in the accompanying condensed consolidated statement of cash flows for the three months ended March 31, 2026.
2028 Notes
In connection with the Private Placement, the Company issued $212.5 million aggregate principal amount of the 2028 Notes. The 2028 Notes bear interest at a rate of 9.80% per year, payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year. The 2028 Notes mature on December 31, 2028, unless earlier redeemed or repurchased.
The Company is required to redeem $30.4 million of the 2028 Notes on or before September 30, 2026, and beginning on December 31, 2027 and at every calendar quarter end thereafter, the Company is required to redeem $10.1 million of the outstanding 2028 Notes. In addition, the Company is required to repurchase a portion of the 2028 Notes upon certain asset sales and capital raises. The Company may also redeem any or all of the 2028 Notes at par plus accrued and unpaid interest at any time. Any such mandatory or optional redemptions may be made using cash, or subject to certain conditions, shares of common stock or a combination thereof.
The 2028 Notes are secured on a first-priority basis by liens on substantially all of the assets of the Company and its domestic subsidiaries, subject to customary exceptions, including customer deposits, pursuant to a security agreement and related collateral documents.
2027 Notes
In January 2022, the Company completed an offering of $425 million aggregate principal amount of the 2027 Notes. The 2027 Notes are senior, unsecured obligations of the Company, and bear interest at a fixed rate of 2.50% per year. Interest is payable in cash semi-annually in arrears on February 1 and August 1 of each year. The 2027 Notes mature on February 1, 2027 unless earlier repurchased, redeemed or converted. Following the Repurchases, $70.4 million in aggregate principal amount of the 2027 Notes remained outstanding as of March 31, 2026.

(9)    Stockholders’ Equity
In November 2024, the Company entered into an open market sale agreement with Jefferies LLC (“Jefferies”) providing for the offer and sale of up to $300 million of shares of the Company’s common stock from time to time through Jefferies, acting as sales agent, or directly to Jefferies, acting as principal, through an “at-the-market offering” program (the “2024 ATM Program”).
During the three months ended March 31, 2026, the Company sold 4.0 million shares of common stock under the 2024 ATM Program and generated $11.0 million in gross proceeds, before deducting $0.3 million in commissions and other expenses.
As of March 31, 2026, the Company had sold a total of 41.6 million shares of common stock under the 2024 ATM Program, generating $161.7 million in gross proceeds since its inception, before deducting $4.7 million in commissions and other expenses.
14

Table of Contents
VIRGIN GALACTIC HOLDINGS, INC.
Notes to Condensed Consolidated Financial Statements

(10)    Stock-Based Compensation
Equity Incentive Plans
The Company maintains two equity incentive plans -- the Third Amended and Restated Virgin Galactic Holdings, Inc. 2019 Incentive Award Plan (the “Third A&R Plan”) and the Second Amended and Restated Virgin Galactic Holdings, Inc. 2023 Employment Inducement Incentive Award Plan (the “Second A&R Inducement Plan”). 
The Second A&R Inducement Plan was adopted by the Company’s board of directors and became effective in March 2026. The Second A&R Inducement Plan increased the number of shares available by 555,000 shares to an aggregate of 1,695,000 shares reserved for issuance under the Second A&R Inducement Plan.
Pursuant to the Third A&R Plan and related predecessor plans, the Company has granted equity incentive awards, including time-based stock options, performance-based stock options, restricted stock units (“RSUs”), and performance stock units (“PSUs”). Pursuant to the Second A&R Inducement Plan and related predecessor plans, the Company has granted RSUs and PSUs.
Employee Stock Purchase Plan
The Virgin Galactic Holdings, Inc. 2025 Employee Stock Purchase Plan (the “ESPP”) was adopted by the Company’s board of directors in April 2025, subject to the approval of the Company’s stockholders, and became effective upon the approval of the Company’s stockholders in June 2025.
Stock-Based Compensation
A summary of stock-based compensation expense included in the condensed consolidated statements of operations and comprehensive loss is as follows:

Three Months Ended March 31,
20262025
(In thousands)

Spaceline operations$958 $435 
Research and development121 402 
Selling, general and administrative3,042 3,932 
Total stock-based compensation expense4,121 4,769 
Less: stock-based compensation expense for liability-classified awards193 (64)
Stock-based compensation expense for equity-classified awards$3,928 $4,833 

As of March 31, 2026, the Company had unrecognized stock-based compensation expense of $32.6 million and $1.8 million for RSUs and PSUs, respectively, which are expected to be recognized over weighted-average periods of 1.8 years and 2.8 years, respectively.

(11)    Income Taxes
Income tax expense was $30,000 and $48,000 for the three months ended March 31, 2026 and 2025, respectively. The effective income tax rate was nil for each of the three months ended March 31, 2026 and 2025. The effective tax rate differs from the U.S. statutory rate primarily due to a full valuation allowance against net deferred tax assets where it is more likely than not that some or all of the deferred tax assets will not be realized.
15

Table of Contents
VIRGIN GALACTIC HOLDINGS, INC.
Notes to Condensed Consolidated Financial Statements

(12)    Earnings Per Share
The following table presents net loss per share and related information:

Three Months Ended March 31,
20262025
(In thousands, except per share amounts)
Basic and diluted:
Net loss$(64,715)$(84,487)
Weighted-average common shares outstanding
79,482 35,440 
Basic and diluted net loss per share$(0.81)$(2.38)

Basic and diluted net loss per share is computed using the weighted-average number of shares of common stock outstanding during the period. The computation of diluted net loss per share excludes the effect of all potential common shares outstanding as their impact would have been anti-dilutive.
The Company has excluded stock-based awards and shares issuable upon conversion of the 2027 Notes from the diluted loss per share calculation because their effect was anti-dilutive. The total number of shares excluded for the three months ended March 31, 2026 and 2025 were 12.8 million and 7.0 million, respectively.

(13)    Fair Value Measurements
Assets and liabilities subject to fair value measurements are required to be disclosed within a fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair value. Accordingly, assets and liabilities carried at fair value are classified within the fair value hierarchy in one of the following categories:
• Level 1 inputs — Quoted prices in active markets for identical assets or liabilities.
• Level 2 inputs — Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.
• Level 3 inputs — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability.
The following tables present the Company’s financial assets that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy:

March 31, 2026
Level 1Level 2Level 3Total
(In thousands)
Assets:
Money market$137,561 $— $— $137,561 
U.S. treasuries59,604 — — 59,604 
Corporate bonds— 35,450 — 35,450 
Total assets at fair value$197,165 $35,450 $— $232,615 

16

Table of Contents
VIRGIN GALACTIC HOLDINGS, INC.
Notes to Condensed Consolidated Financial Statements

December 31, 2025
Level 1Level 2Level 3Total
(In thousands)
Assets:
Money market$168,028 $— $— $168,028 
U.S. treasuries9,898 — — 9,898 
Corporate bonds— 152,415 — 152,415 
Total assets at fair value$177,926 $152,415 $— $330,341 

The following tables present the Company’s financial liabilities that are recorded at amortized cost, segregated among the appropriate levels within the fair value hierarchy:

March 31, 2026
Level 1Level 2Level 3Total
(In thousands)

Liabilities:
2028 Notes
$— $170,687 $— $170,687 
2027 Notes— 55,192 — 55,192 
Total liabilities at fair value$— $225,879 $— $225,879 

December 31, 2025
Level 1Level 2Level 3Total
(In thousands)

Liabilities:
2028 Notes
$— $173,184 $— $173,184 
2027 Notes— 57,592 — 57,592 
Total liabilities at fair value$— $230,776 $— $230,776 

The estimated fair values of the 2028 Notes and 2027 Notes, which are classified as Level 2 financial instruments, were determined based on the estimated or actual bid prices of the respective notes in an over-the-counter market on the last business day of the period, if available, or indicative pricing from market information.
17

Table of Contents
VIRGIN GALACTIC HOLDINGS, INC.
Notes to Condensed Consolidated Financial Statements

(14)    Commitments and Contingencies
Leases
Future minimum lease payments under noncancelable operating leases and future minimum finance lease payments as of March 31, 2026 are as follows:

Operating LeasesFinance Leases
(In thousands)
2026 (for the remaining period)
$10,623 $160 
202713,951 115 
202