Newsletter
Elon Musk's SpaceX reported its first-ever quarterly results as a publicly listed company. While revenue nearly doubled, spending surged even faster.
The numbers:
- Revenue: jumped 92% YoY to $7.8 billion.
- Spending: soared more than 550% YoY to $18.3 billion, contributing to a net loss of $2 billion in the first six months of the year.
This was the first time SpaceX faced Wall Street scrutiny as a listed company, and investors appeared cautious. Since debuting at $150 on June 12, the stock has fallen 16% as of Tuesday's close.
What's driving the business: most of SpaceX's revenue last year, and its only profitable business, came from its Connectivity segment, led by the Starlink satellite internet service. Starlink serves both retail customers and government and military agencies.
Segment-wise revenue (Q2):
- Space: $962 million (vs. $835 million expected)
- Connectivity: $4.29 billion (vs. $3.83 billion expected)
- AI: $2.56 billion (vs. $2.18 billion expected)
What's next: the company plans to begin flying satellites capable of delivering its standalone direct-to-cell service in 2027.
It also expects to roll out Starlink Mobile to its first customers by the end of next year, expanding satellite-based mobile connectivity beyond internet services.
