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THIRD QUARTER 2025 11.13.2025 EARNINGS PRESENTATION
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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 spaceships, 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 2Third Quarter 2025 Earnings Update
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Fourth Quarter and Full Year 2024 Earnings Update 3 3Third Quarter 2025 Earnings Update AGENDA • Business Overview • SpaceShip Program Progress • Financial Overview • Q&A
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RECENT VIRGIN GALACTIC UPDATES WATCH THE VIDEO: VirginGalactic.com Fourth Quarter and Full Year 2024 Earnings Update 4 4Third Quarter 2025 Earnings Update WE BUILD SPACESHIPS WATCH THE SERIES: VirginGalactic.com/ virgin-galactic-we-build-spaceships-preview
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SPACESHIP PROGRESS THE WING 5Third Quarter 2025 Earnings Update
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THE FEATHER SPACESHIP PROGRESS 6Third Quarter 2025 Earnings Update
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THE FEATHER SPACESHIP PROGRESS 7Third Quarter 2025 Earnings Update
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8 THE FUSELAGE SPACESHIP PROGRESS 8Third Quarter 2025 Earnings Update
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9 SPACESHIP PROGRESS 9Third Quarter 2025 Earnings Update OXIDIZER TANK – QUALIFICATION TANK
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Tuesday we will get new image of MOT in front of fuse OXIDIZER TANK – FLIGHT ARTICLE SPACESHIP PROGRESS 10Third Quarter 2025 Earnings Update
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THE FUSELAGE SPACESHIP PROGRESS 11Third Quarter 2025 Earnings Update
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12 THE FUSELAGE SPACESHIP PROGRESS 12Third Quarter 2025 Earnings Update
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SPACESHIP PROGRESS 13Third Quarter 2025 Earnings Update AVIONICS – ROCKET SYSTEMS – LAUNCH VEHICLE
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14 Third Quarter 2025 Earnings Update
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Third Quarter 2025 Earnings Update 15 FINANCIAL RESULTS • Revenue of $0.4 million for each of the third quarters of 2025 and 2024, attributable to access fees related to future astronauts. • Total operating expenses were $67 million, compared to $82 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 $64 million, compared to net loss of $75 million in the prior year period, with the improvement primarily driven by lower operating expenses. • Adjusted EBITDA of $(53) million, compared to $(59) million in the prior year period. • Free cash flow of $(108) million, compared to $(118) million the prior year period. • Raised $23 million in gross proceeds as part of the at-the-market equity offering program. THIRD QUARTER 2025 Ended September 30, 2025
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FREE CASH FLOW (1) Q3 2025 $(108) million Q4 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 $(90) million to $(100) million September 30, 2025 $424M(3) $0 $200M $400M 16Third Quarter 2025 Earnings Update
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Economies of Scale Expected as Fleet Size Grows (Illustrative Economics) SPACEPORT AMERICA Initial Fleet Expanded Fleet Growth with Expanded Fleet Annual Revenue1 $450M $990M Approx. 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 - $500M Approx. 4x Adj. EBITDA Adjusted EBITDA % 20% - 25% 45% - 50% Approximate Annual # of flights/astronauts 125 flights/ 750 passengers 275 flights/ 1,650 passengers # of SpaceShips in Operation 2 4 Delta #3 and Delta #4 # of Launch Vehicles in Operation 1 2 Additional Launch Vehicle 1. Reflects stabilized annual revenue with ticket price at $600K/passenger 2. Rocket motor, Astronaut support, fuel, Spaceport landing fees, other 3. 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. 17Third Quarter 2025 Earnings Update
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Third Quarter 2025 Earnings Update 18
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Third Quarter 2025 Earnings Update APPENDIX 19Third Quarter 2025 Earnings Update
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Third Quarter 2025 Earnings Update 20 RECONCILIATION OF NON-GAAP MEASURES – Adjusted EBITDA (In thousands) THREE MONTHS ENDED September 30, 2025 September 30, 2024 Net loss $ (64,417) $ (74,540) Interest expense 3,250 3,233 Income tax expense - 105 Depreciation and amortization 4,117 4,341 Stock-based compensation 4,719 7,560 Legal settlement expense (500) - Adjusted EBITDA $ (52,831) $ (59,301)
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Third Quarter 2025 Earnings Update 21 RECONCILIATION OF NON-GAAP MEASURES – Free Cash Flow (In thousands) THREE MONTHS ENDED September 30, 2025 September 30, 2024 Net cash used in operating activities $ (56,303) $ (79,307) Capital expenditures (51,484) (38,659) Free cash flow $(107,787) $(117,966)
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THIRD QUARTER 2025 | EARNINGS UPDATE | 11.13.25