Virgin Galactic Shares Face Critical Test Ahead of Earnings

Investor confidence in space tourism pioneer Virgin Galactic appears to be waning as the company approaches its quarterly financial disclosure. Shares concluded Friday's trading session at $3.59, reflecting substantial market apprehension before Thursday's post-market earnings release for the third quarter of fiscal 2025.

Market experts anticipate disappointing results, with projections pointing to a per-share loss of $1.54 on minimal revenue of just $0.315 million. These forecasts highlight the significant financial pressures confronting the company during its current development phase, continuing concerning trends established in previous quarterly reports.

The second quarter of 2025 revealed dramatic financial deterioration, with revenue collapsing to $0.4 million compared to $4.2 million during the same period last year. This steep decline resulted from the suspension of commercial spaceflight operations to facilitate development of the next-generation Delta-class spacecraft. Despite reporting a surprisingly positive earnings per share figure, the company recorded a net loss of $67 million, accompanied by a staggering negative net margin of 17,828.03%.

Key financial metrics illustrate the challenging position:
* Second quarter 2025 revenue: $0.4 million
* Net loss for Q2 2025: $67 million
* Cash reserves: $508 million
* Q2 2025 free cash flow: -$114 million
* Projected Q3 2025 free cash flow: -$100 to -$110 million

This persistent capital outflow significantly contributes to the prevailing negative market sentiment.

Should investors sell immediately? Or is it worth buying Virgin Galactic?

Delta-Class Spacecraft: Strategic Pivot

The company's future prospects increasingly hinge on the successful development and deployment of its Delta-class spaceplanes, with initial test flights scheduled for late 2026. These advanced spacecraft are designed to enable more frequent missions with enhanced passenger capacity. Company projections suggest that expanding the operational fleet from two to four vehicles could potentially double annual revenue while quadrupling adjusted EBITDA. Commercial operations, including research missions and private astronaut flights, remain scheduled to commence in autumn 2026.

Market Sentiment and Analyst Perspectives

Financial analysts express continued skepticism about near-term prospects. The average price target currently stands at $5.00, with recommendations divided between one buy rating, two hold positions, and one sell recommendation. Several market observers recently reduced their price targets, citing concerns over the company's substantial cash burn rate.

The stock's inherent volatility became particularly evident in early October 2025, when a brief 40% price surge was quickly erased by profit-taking activity. This pattern underscores investor nervousness regarding the financial realities of the space tourism sector and Virgin Galactic's ability to navigate its current challenges successfully.

The upcoming earnings report will provide crucial insight into whether the company can stabilize its financial position while progressing toward its Delta-class development milestones.