Slides
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FIRST QUARTER 2025 EARNINGS PRESENTATION 05.15.2025
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FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this presentation other than statements of historical fact, including, without limitation, statements regarding our spaceflight systems, scaling of our future fleet, increasing our flight rate, providing repeatable and reliable access to space, development of our spaceships and proposed timeline for assembling, testing and commercial service using such spaceships, the potential to develop additional spaceships in the future and the anticipated costs thereof, our commercial initiatives, including our plans for reopening sales, potential opportunities for our carrier platform, our potential to raise growth capital and the sources thereof, the timing of the design process, tooling development, parts fabrication and assembly of our Delta Class spaceships, expansion plans for a second spaceport and additional spaceports around the world, and our objectives for future operations, growth plans and profitability and the Company’s financial forecasts, including expected free cash flow, potential annualized revenues and adjusted EBITDA and contribution margin, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “strategy,” “future,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to 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, our expected capital requirements and the availability of additional financing, and the other factors, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the "SEC"), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at www.virgingalactic.com, which could cause our actual results to differ materially from those indicated by the forward-looking statements made in this presentation. Any such forward-looking statements represent management’s estimates as of the date of this presentation. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. USE OF NON-GAAP FINANCIAL MEASURES This presentation references certain financial measures that are not prepared in accordance with generally accepted accounting principles in the United States (GAAP), including, non-GAAP total operating expenses, Adjusted EBITDA and free cash flow. The Company defines non-GAAP total operating expenses as total operating expenses other than stock-based compensation, depreciation and amortization and certain other items the Company believes are not indicative of its core operating performance. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation and amortization, stock-based compensation and certain other items the Company believes are not indicative of its core operating performance. The Company defines free cash flow as net cash provided by operating activities less capital expenditures. None of these non-GAAP financial measures is a substitute for or superior to measures prepared in accordance with GAAP and should not be considered as an alternative to any other measures derived in accordance with GAAP. The Company believes that presenting these non-GAAP financial measures provides useful supplemental information to investors about the Company in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational- decision making. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore any non-GAAP measures the Company uses may not be directly comparable to similarly titled measures of other companies. A reconciliation of these non-GAAP financial measures is included in the appendix to this presentation. The Company also provides certain non-GAAP measures, including free cash flow, on a forward-looking basis. The Company has not provided a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures because such a reconciliation is not available without unreasonable efforts, due to the variability of these items and the fact that there is substantial uncertainty associated with predicting any future adjustments that we may make to our GAAP financial measures in calculating our non-GAAP financial measures. DISCLOSURES First Quarter 2025 Earnings Update 2
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3First Quarter 2025 Earnings Update AGENDA • SpaceShip Program Progress • Commercial Initiatives • Financial Overview • Q&A
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Fourth Quarter and Full Year 2024 Earnings Update 4 4First Quarter 2025 Earnings Update Rocket and Propulsion System BUILDING SPACESHIPS Mechanical Systems Avionics and Flight Controls Development & Delivery of Carbon Parts
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5First Quarter 2025 Earnings Update HYBRID ROCKET MOTOR SYSTEM OXIDIZER TANK SPACESHIP PROGRESS
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6First Quarter 2025 Earnings Update SPACESHIP PROGRESS AVIONICS and FLIGHT CONTROLS
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7First Quarter 2025 Earnings Update SPACESHIP PROGRESS AVIONICS and FLIGHT CONTROLS
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8First Quarter 2025 Earnings Update SPACESHIP PROGRESS MECHANICAL SYSTEMS LANDING GEAR
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9First Quarter 2025 Earnings Update SPACESHIP PROGRESS LOWER WING SKINS
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10First Quarter 2025 Earnings Update SPACESHIP PROGRESS UPPER WING SKINS
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11First Quarter 2025 Earnings Update SPACESHIP PROGRESS FUSELAGE
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12First Quarter 2025 Earnings Update SPACESHIP PROGRESS FEATHER BOOM
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13First Quarter 2025 Earnings Update SPACESHIP PROGRESS BULKHEAD
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14First Quarter 2025 Earnings Update SPACESHIP PROGRESS ASSEMBLY TOOLING
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15First Quarter 2025 Earnings Update Bi-Weekly Series Debuting in June 2025
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COMMERCIAL INITIATIVES 16First Quarter 2025 Earnings Update • Sales Process • Future Spaceport Development • Business Development Opportunities
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SpaceShip Launch Vehicle For Virgin Galactic “HALE – Heavy” Derivative For Government/Research Opportunities *HALE: High Altitude Long Endurance CARRIER SHIP PLATFORM OPPORTUNITIES 17First Quarter 2025 Earnings Update
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18First Quarter 2025 Earnings Update “HALE – Heavy” Derivative For Government/Research Opportunities *HALE: High Altitude Long Endurance EXISTING AND EMERGING MISSION OPPORTUNITIES • Airborne Research and Development Testing • Intelligence, Surveillance, and Reconnaissance Support • Command and Control Node Capabilities • Golden Dome Initiatives
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First Quarter 2025 Earnings Update 19 FINANCIAL RESULTS • Revenue of $0.5 million, compared to $2.0 million in the prior year period, with the decrease driven by the pause in commercial spaceflights to focus efforts on the production of the Delta Class SpaceShips. • Total operating expenses were $89 million, compared to $113 million in the prior year period, reflecting a shift from R&D to capital investments in manufacturing assets to build multiple SpaceShips • Net loss of $84 million, compared to $102 million in the prior year period, with the improvement primarily driven by lower operating expenses • Adjusted EBITDA of $(72) million, compared to $(87) million in the prior year period. • Free cash flow of $(122) million, compared to $(126) million in the prior year period. • Raised $31 million in gross proceeds as part of the at-the-market equity offering program. FIRST QUARTER 2025 Ended March 31, 2025
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FREE CASH FLOW (1) Q1 2025 $(122) million Q2 2025 GUIDANCE (2) Expected to be in the range of CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES 1. Virgin Galactic uses Free Cash Flow as a key measure of its performance. Free Cash Flow is defined as cash flows provided by operating activities less capital expenditures. Refer to the appendix of this presentation for a reconciliation to GAAP. 2. For the reasons discussed under the heading "Use of Non-GAAP Financial Measures" on slide 2, the Company has not provided a reconciliation of this forward-looking non-GAAP financial measure to the most directly comparable GAAP financial measure because such a reconciliation is not available without unreasonable efforts. 3. Amount includes $31M of restricted cash. CASH FLOW AND BALANCE SHEET $(105) million to $(115) million March 31, 2025 $567M(3) $0 $200M $400M $600M 20 First Quarter 2025 Earnings Update
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21 UPCOMING KEY MILESTONES SUMMER - FALL - WINTER Building and Testing SPRING First Glide Test Flight SUMMER First Research Spaceflight FALL First Private Astronaut Flight 2025 2026 First Quarter 2025 Earnings Update
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First Quarter 2025 Earnings Update APPENDIX 22First Quarter 2025 Earnings Update
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First Quarter 2025 Earnings Update 23 RECONCILIATION OF NON-GAAP MEASURES – Operating Expenses (In thousands) THREE MONTHS ENDED March 31, 2025 March 31, 2024 Total operating expenses $ 88,909 $ 113,143 Stock-based compensation 4,769 8,244 Depreciation and amortization 4,223 3,699 Non-GAAP total operating expenses $ 79,917 $ 101,200
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First Quarter 2025 Earnings Update 24 RECONCILIATION OF NON-GAAP MEASURES – Adjusted EBITDA (In thousands) THREE MONTHS ENDED March 31, 2025 March 31, 2024 Net loss $ (84,487) $ (102,012) Interest expense 3,240 3,227 Income tax expense 48 80 Depreciation and amortization 4,223 3,699 Stock-based compensation 4,769 8,244 Adjusted EBITDA $ (72,207) $ (86,762)
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First Quarter 2025 Earnings Update 25 RECONCILIATION OF NON-GAAP MEASURES – Free Cash Flow (In thousands) THREE MONTHS ENDED March 31, 2025 March 31, 2024 Net cash used in operating activities $ (75,918) $ (113,229) Capital expenditures (46,047) (13,072) Free cash flow $(121,965) $(126,301)
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FIRST QUARTER 2025 | EARNINGS UPDATE | 5.15.25