SpaceX Reports $7.8 Billion Revenue in First Earnings as Public Company

SpaceX has reported its first earnings since going public, posting a revenue of $7.8 billion for the second quarter, a 92% increase from $4.1 billion a year earlier and exceeding the $6.81 billion estimate from analysts. The company’s AI segment, which includes xAI and Grok, recorded an operating loss of $1.26 billion, significantly narrower than the anticipated $2.39 billion loss. Adjusted EBITDA stood at $3.5 billion, well above the $2 billion forecast, while overall operating loss was reported at $1.3 billion.

Capital expenditures were reported at $18.37 billion, slightly below the $18.58 billion estimate, indicating a disciplined approach to spending as SpaceX continues to invest in Starship development and orbital AI computing infrastructure. The backlog at the end of the quarter was $47.5 billion.

Starlink, SpaceX's satellite internet service, remains the primary driver of revenue, expanding its subscriber base through additional satellite launches and new offerings across various sectors including consumer, enterprise, and government. However, the average revenue per user (ARPU) has declined as the company enters lower-priced international markets, raising concerns about margin sustainability.

The AI business is generating revenue through contracts with companies such as Anthropic and Google, although some recurring revenue has yet to be recognized. Additionally, SpaceX announced a partnership with Nvidia to provide chips for its Starmind AI1 satellites, highlighting its commitment to advancing space-based computing capabilities.

Looking ahead, the stock has seen an 8% decline since its IPO in June, which valued the company at approximately $1.75 trillion. The upcoming expiration of the post-IPO lock-up period on Thursday may lead to increased selling pressure from insiders and early investors. Investors are also keenly watching for any updates from CEO Elon Musk regarding potential mergers, particularly with Tesla, amid ongoing speculation about corporate strategies in China.