Key facts
- SpaceX shares dropped 11% in pre-market trading.
- Revenue rose 92% to $7.8 billion, beating estimates.
- Adjusted EBITDA nearly tripled to $3.5 billion.
- The company reported a net loss of $541 million.
- Capital expenditures reached $18.4 billion for infrastructure expansion.
- SpaceX holds 18,712 bitcoin, which saw a fair-value loss of $195 million.
SpaceX shares declined 11% in pre-market trading on Wednesday, as investors weighed concerns over significant capital expenditures and an impending insider share lockup expiration against a stronger-than-expected first earnings report. The company's revenue surged 92% year-over-year to $7.8 billion, surpassing Wall Street estimates, and adjusted EBITDA nearly tripled to $3.5 billion. Despite narrowing its net loss to $541 million, SpaceX reported substantial spending of $18.4 billion during the quarter to expand its Starlink, Starship, and AI infrastructure.
SpaceX maintained its holdings of 18,712 bitcoin throughout the quarter. This position, valued at approximately $1.1 billion at the end of June, introduced accounting volatility due to fair-value accounting rules, resulting in an approximate $195 million loss during the period. JPMorgan, while raising its price target for SpaceX to $240 from $225, projected capital expenditures to reach nearly $200 billion in both 2027 and 2028, potentially pressuring free cash flow. The bank also noted the upcoming lock-up expiration on Thursday, which could make 911.5 million shares available for sale, potentially increasing the public float by 143%, though it suggested this event may have been largely priced in. Raymond James maintained its $800 price target, citing the company's robust operating performance.