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Summary
SpaceX reported a 92% revenue increase to $7.8 billion in Q2, surpassing Wall Street’s estimate of $6.9 billion. The company reported a net loss of $541 million, or 9 cents a share, and adjusted EBITDA nearly tripled to $3.5 billion. The results come at a pivotal moment for the company, which has seen its stock price tumble roughly 50% from its peak.
Our Reading
The numbers tell one story. SpaceX’s revenue surge is a positive sign, but the company’s net loss and upcoming insider selling could put pressure on the stock. The company’s AI segment has turned a corner, with a flush of new cloud-computing contracts catapulting it into positive adjusted EBITDA territory for the first time. The earnings call will likely be closely watched, especially with the lockup provision set to expire. The real story is how SpaceX will manage its cash burn and investor expectations. “The IPO honeymoon is over, and the hard work begins.”
Key Takeaways
Revenue and Loss
- Revenue: $7.8 billion (up 92% from Q2 last year)
- Net loss: $541 million (or 9 cents a share)
- Adjusted EBITDA: $3.5 billion (nearly tripled from Q2 last year)
Stock Performance
- Stock price has tumbled roughly 50% from its peak
- Lockup provision set to expire, allowing pre-IPO shareholders to sell a portion of their holdings
AI Segment
- Flush of new cloud-computing contracts catapulted the AI segment into positive adjusted EBITDA territory for the first time
- Starlink’s subscriber base doubled year-over-year
What’s Next
SpaceX will hold its earnings call at 4:30 ET, where investors will be watching for guidance on the company’s future plans and how it will manage its cash burn and investor expectations.
