The numbers are in. After SpaceX’s record-breaking June IPO, the company released its first quarterly results on Tuesday, and the headline figures beat expectations: $7.8B in revenue—up 92% year-over-year—and a net loss of $541M.
However, the stock fell ~7% after hours, as investors weighed the company’s heavy spending and a share lockup set to expire this week.
It’s a fitting debut for what is now far more than a rocket company, spanning three verticals: space, connectivity, and AI.
Space: The launch business grew 29% YoY to $962M, despite launching fewer times in the first half of the year—78 compared to 84 in 2025. That means the gains came from a richer mix of paying customers.
The segment reported:
- $542M operating loss, and a $205M adjusted EBITDA loss (a measure that excludes some costs);
- $1.1B in R&D (primarily Starship)—the main driver of those losses.
When asked on the call whether the heat shield is Starship’s biggest barrier to reusability, Musk said he considers the problem effectively solved.
Connectivity: Starlink is the engine funding the rest of the company, bringing in $4.3B, or 55% of revenue. Operating income grew faster than revenue—up 79% to $1.7B—a sign that the business is growing more profitable.
- Subscribers doubled from a year ago to 12M, with a record 1.7M net adds in Q2.
- But revenue per user fell to $66/month from $85, as expansion into lower-priced markets dragged the average down.
- SpaceX president and COO Gwynne Shotwell said Starlink ended the quarter in 167 markets and teased more to come.
Enterprise and government revenue stood out—up 108% YoY to $1.8B—including $6B+ in new contracts for Starshield, the company’s secure satellite network for governments.
AI: Analysts watched this segment closely as other tech giants saw their stocks suffer after reporting surging AI capex and negative cash flow.
Revenue hit $2.6B—up 247% YoY—though almost entirely from the merger and new cloud deals rather than organic growth.
- $15.8B in AI capital spending, mostly data center hardware, made up 86% of the company’s total spend. The unit still lost $1.3B.
- $1.1B in adjusted EBITDA counts as a profit, but only because the measure leaves out the $1.9B cost of that hardware wearing out.
- $6.7B in new cloud deals were signed in early Q3, according to management, which they used to argue that each dollar spent on computing pays for itself within a year.
For all the burn, SpaceX isn’t cash-strapped—it ended the quarter with $100B in cash after its IPO and a $25B bond sale. The open question is how long that spending takes to translate into returns.
But wait…: The ride doesn’t stop with the Q2 release. On Thursday, the first share lockup expires, letting employees and other insiders sell for the first time. Shares unlock in waves over the coming months, with more than double the current tradable supply freed Thursday alone. The added supply could push the stock down even on solid earnings.
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