Virgin Galactic Prepares for Return-to-Flight, Releases Q4 and FY 2022 Results

Image: Virgin Galactic

Virgin Galactic ($SPCE) released its Q4 and FY 2022 results Tuesday after the bell. The numbers show significant losses compared to 2021, but roughly in line with expectations.

Virgin Galactic’s Q4, by the numbers:

  • Net loss of $151M
  • $980M cash and cash equivalents as of Dec. 31, 2022
  • Adj. EBITDA totaling -$133M

Virgin Galactic lost roughly half a billion dollars in 2022, up from 2021’s net loss of $353M. As of market close Wednesday, $SPCE shares are trading at $4.73, down ~17.7% from Tuesday’s close at $5.74 per share.

The RTF home stretch 

Virgin Galactic is ramping up to resume flights in Q2 this year, having been on a hiatus from the skies since 2021. The company’s mothership, VMS Eve, has been grounded since Oct. 2021 for repairs that “took longer than we originally planned,” CEO Michael Colglazier said on the earnings call.

  • Eve needed extensive repairs to its horizontal stabilizers and the pylon connector for the mothership and spaceplane.
  • Over the past two months, the craft has flown two test flights and relocated from Mojave to Spaceport America in New Mexico.

VSS Unity, the human-rated spaceplane, also has test flights on the docket for Q2. When Virgin Galactic is satisfied with its performance, “we see a path to be on a monthly cadence in reasonably short order,” Colglazier said.

Returning to flight: The company says that it’s making good progress toward a commercial flight carrying three mission specialists for the Italian Air Force. 

About the next generation…Virgin Galactic has slowed development on VSS Imagine, its next-generation spaceplane, to focus on bringing VMS Eve and VSS Unity from zero to a regular commercial flight cadence.