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SECOND QUARTER 2025 EARNINGS PRESENTATION08.06.2025
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FORWARD-LOOKING STATEMENTSThis 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 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, Adjusted EBITDA and free cash flow. 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 2Second Quarter 2025 Earnings Update
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AGENDA•Business Overview•SpaceShip Program Progress•Financial Overview•Q&A 3Second Quarter 2025 Earnings Update
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RECENT VIRGIN GALACTIC UPDATES WATCH THE VIDEO: http://www.VirginGalactic.com Fourth Quarter and Full Year 2024 Earnings Update4 EPISODE 4:COMING SOON EPISODE 3:CARBON COMPOSITE STRUCTURES EPISODE 1:THE JOURNEY EPISODE 2:FLIGHT CONTROLS WE BUILD SPACESHIPSGALACTIC 10 SERIESWATCH THE SERIES:https://bit.ly/WeBuildSpaceShips 4Second Quarter 2025 Earnings Update
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Fourth Quarter and Full Year 2024 Earnings Update5 5Second Quarter 2025 Earnings Update Rocket and Propulsion System BUILDING SPACESHIPS Mechanical Systems Avionics and Flight Controls Development & Deliveryof Carbon & Metallic Structures
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6 ROCKET SYSTEMSSPACESHIP PROGRESS 6Second Quarter 2025 Earnings Update
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SPACESHIP PROGRESS AVIONICS AND FLIGHT CONTROLS 7Second Quarter 2025 Earnings Update
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Fourth Quarter and Full Year 2024 Earnings Update8 SPACESHIP PROGRESS MECHANICAL SYSTEMS SAFETY & TEST FACILITY NOSE LANDING GEAR WING LEADING EDGE BOTTLES8Second Quarter 2025 Earnings Update
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Fourth Quarter and Full Year 2024 Earnings Update9 SPACESHIP PROGRESS FUSELAGE - BULKHEADS 9Second Quarter 2025 Earnings Update
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Fourth Quarter and Full Year 2024 Earnings Update10 SPACESHIP PROGRESS FEATHER BOOM SKINS LAYUPTRIM INSPECTION 10Second Quarter 2025 Earnings Update
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Fourth Quarter and Full Year 2024 Earnings Update11 SPACESHIP PROGRESS WING LOWER WING SKINSUPPER WING SKINS 11Second Quarter 2025 Earnings Update
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Fourth Quarter and Full Year 2024 Earnings Update12 SPACESHIP PROGRESS WING CONTINUED 12Second Quarter 2025 Earnings Update AFT SPAR LEADING EDGE SHEAR WEB
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“LV-X” LAUNCH VEHICLE PROGRAM 13Second Quarter 2025 Earnings Update
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Second Quarter 2025 Earnings Update14 FINANCIAL RESULTS•Revenue of $0.4 million, compared to $4.2 million in the prior year period, with the decrease driven by the pause in commercial spaceflights to focus efforts on the production of our new SpaceShips. •Total operating expenses were $70 million, compared to $106 million in the prior year period. This reflects a shift from R&D to capital investments in manufacturing assets and the production of our SpaceShips, as well as a reduction in overall cost structure.•Net loss of $67 million, compared to net loss of $94 million in the prior year period, with the improvement primarily driven by lower operating expenses. •Adjusted EBITDA of $(52) million, compared to $(79) million in the prior year period.•Free cash flow of $(114) million in each of the second quarters of 2025 and 2024.•Raised $56 million in gross proceeds as part of the at-the-market equity offering program. SECOND QUARTER 2025Ended June 30, 2025
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FREE CASH FLOW (1)Q2 2025$(114) million Q3 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 $30M of restricted cash. CASH FLOW AND BALANCE SHEET $(100) million to $(110) millionJune 30, 2025 $508M(3) $0$200M$400M$600M 15Second Quarter 2025 Earnings Update
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Economies of Scale Expected as Fleet Size Grows(Illustrative Economics)SPACEPORT AMERICAInitial FleetExpanded FleetGrowth with Expanded FleetAnnual Revenue1 $450M$990MApprox. 2x Revenue- Variable Spaceflight Costs2 (80M)(165M)Contribution Margin$370M$825M- Spaceline Operation Costs(105M - 120M)(140M - 170M)-Sales, General, & Administrative(95M - 100M)(100M - 110M)-Business Development/R&D/Other(55M - 60M)(85M - 95M)Adjusted EBITDA3 $90M - $115M$450M - $500MApprox. 4x Adj. EBITDAAdjusted EBITDA %20% - 25%45% - 50%Approximate Annual # offlights/astronauts125 flights/ 750 passengers275 flights/ 1,650 passengers# of SpaceShips in Operation2 4Delta #3 and Delta #4# of Launch Vehicles in Operation1 2Additional Launch Vehicle1. Reflects stabilized annual revenue with ticket price at $600K/passenger2. Rocket motor, Astronaut support, fuel, Spaceport landing fees, other3. Adjusted EBITDA excludes stock-based compensation. See definition of Adjusted EBITDA on page 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. 16Second Quarter 2025 Earnings Update
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Second Quarter 2025 Earnings Update APPENDIX 17Second Quarter 2025 Earnings Update SPACESHIP PROGRESS FORWARD SPAR IN TRIM
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Second Quarter 2025 Earnings Update18 RECONCILIATION OF NON-GAAP MEASURES – Adjusted EBITDA(In thousands)THREE MONTHS ENDEDJune 30, 2025June 30, 2024Net loss $ (67,280)$ (93,775)Interest expense3,2473,230Income tax expense (benefit)(37)34Depreciation and amortization4,1713,256Stock-based compensation4,8328,236Accrued legal settlement expense2,875- Adjusted EBITDA$ (52,192)$ (79,019)
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Second Quarter 2025 Earnings Update19 RECONCILIATION OF NON-GAAP MEASURES – Free Cash Flow (In thousands)THREE MONTHS ENDEDJune 30, 2025June 30, 2024Net cash used in operating activities$ (55,446)$ (79,132)Capital expenditures (58,361)(34,415)Free cash flow$(113,807)$(113,547)
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SECOND QUARTER 2025 | EARNINGS UPDATE | 8.6.25