Key Takeaways:
SpaceX reported Q2 revenue of $7.8 billion, up 92 percent and above the $6.72 billion consensus, in its first report since its June IPO.
"Revenue growth accelerated across every segment, and we narrowed our net losses by nearly half on a year-over-year basis," CFO Bret Johnsen said in the company's earnings release.
The space exploration company posted a GAAP net loss of $541 million, narrowing from $1.0 billion a year earlier, with diluted EPS of -$0.09 beating the -$0.26 expected. Adjusted EBITDA rose 191 percent to $3.5 billion. Connectivity generated $4.29 billion, up 66 percent, as Starlink subscribers doubled to 12.0 million with ARPU steady at $66 a month. AI revenue jumped 247 percent to $2.56 billion, while the Space segment added $962 million, up 29 percent.
Shares ended the regular session at $125.33, then fell as low as $116.70 in after-hours trading before recovering, down about 7.5 percent from the close per StockTitan data. The company ended the quarter with $100 billion in cash and $47.5 billion in backlog, and management said it expects to reach $100 billion in annualized revenue by December.
The report follows SpaceX's June IPO, which raised about $85.7 billion in net proceeds, and a $25 billion investment-grade bond offering. Capital expenditures reached $18.37 billion in the quarter, including $15.83 billion for AI infrastructure, as the company expanded nameplate compute capacity to 1.4 gigawatts from 0.4 gigawatts a year earlier.
The AI segment still posted a $1.26 billion operating loss but turned segment adjusted EBITDA positive at $1.15 billion, helped by new cloud services agreements with Google and Anthropic. SpaceX has contracted $14.1 billion in AI cloud services and added $6.7 billion more in the first weeks of the third quarter, with revenue from those deals ramping in October. The company also announced a $60 billion acquisition of AI coding firm Cursor, expected to close in the third quarter.
On the connectivity side, SpaceX won more than $6 billion in U.S. government contracts in the quarter and signed a major agreement with American Airlines, adding to Starlink's airline roster. The company plans to deploy its next-generation V3 broadband satellites on upcoming Starship missions, which management said could deliver roughly 10 times the capacity of current satellites.
The results show SpaceX's shift from a launch provider into a diversified AI and connectivity business, with cloud services now the fastest-growing revenue line. Investors will watch the next earnings call in about three months for progress on the $100 billion annualized revenue target and the Cursor deal's closing.
This article is for informational purposes only and does not constitute investment advice.
