The Stock of Virgin Galactic is Skyrocketing. This is Why

Shares of Virgin Galactic Holdings Inc. surged over 13% in premarket trading, driven by stronger-than-expected first-quarter results and an optimistic outlook on future spaceflight pricing. The space tourism company is moving forward with the development of its new Delta class spacecraft, aiming for a maiden research payload mission in 2026. Additionally, it plans to resume private-astronaut spaceflights by the fall of that same year.

‍

During a recent earnings call, CEO Michael Colglazier outlined the company’s roadmap, including plans to open the first wave of reservations for Delta-class spaceflights in the first quarter of 2026. While no exact ticket price has been announced yet, Colglazier indicated that prices are expected to rise above the company’s previous $600,000 per seat.

‍

“We anticipate that most of the customers in this initial phase will be new,” Colglazier said, noting that this group could include both scientists and private individuals. However, he also expressed confidence in generating repeat business from the roughly 675 people already on Virgin Galactic’s customer list.

‍

He cited a promising example: “All three private astronauts who flew on our last mission, Galactic 07, have committed to flying again when our new spacecraft are operational.”

‍

That mission, Galactic 07, marked the final commercial voyage for Virgin Galactic’s Unity spacecraft, which is now retired from commercial service as the company transitions to the newer Delta class vehicles. These next-generation spacecraft are expected to offer improved flight frequency and economics for the company.

‍

Chief Financial Officer Doug Ahrens added more detail on the company’s capital allocation, noting that around half of Virgin Galactic’s projected 2025 expenses will be dedicated to one-time capital costs. These include investments in tooling, manufacturing infrastructure, and the production of the first two Delta-class ships.

‍

As part of its global expansion, Virgin Galactic is also exploring the establishment of a second spaceport in Italy. The company is currently conducting a feasibility study in partnership with the Italian government. Colglazier explained that Italy has identified a military airbase in the Puglia region as a potential spaceport location, which would complement the company's existing Spaceport America in New Mexico.

‍

Despite a drop in quarterly revenue, Virgin Galactic beat Wall Street expectations. Revenue fell to $461,000 from $1.99 million in the same quarter a year ago, mainly due to the pause in commercial spaceflights as the company focuses on developing its Delta spacecraft. However, analysts had only projected about $300,000 in revenue, so the company still exceeded forecasts.

‍

Additionally, Virgin Galactic narrowed its net loss to $2.38 per share, down from $5.10 in the year-ago quarter, outperforming the FactSet consensus estimate of a $2.68 loss per share. The improved results offer some reassurance to investors amid a challenging year for the stock.

‍

At the end of the quarter, the company reported having $567 million in cash, cash equivalents, and marketable securities—resources that should provide a solid financial foundation as it continues developing the Delta program and explores international opportunities.

‍

So far in 2025, Virgin Galactic shares are down 43%, reflecting investor caution amid the company’s transitional period. By contrast, the S&P 500 has edged up 0.6%, while the Procure Space ETF (UFO), which includes Virgin Galactic among its holdings, has gained 5.4%.

‍

Looking forward, the company’s success appears tied to its ability to ramp up production and deliver a new era of space tourism with its Delta spacecraft. Virgin Galactic’s management is betting on increased interest from both new and returning customers once those ships come online.

‍

Investors appear encouraged by the company’s clearer timeline, cost management strategies, and progress toward its next generation of spacecraft. With spaceflight reservations set to open in early 2026 and flight operations planned for later that year, Virgin Galactic is beginning to turn the page from development to execution.

‍