(Bloomberg) -- Virgin Galactic Holdings Inc. declined after it reported third-quarter revenue short of expectations and a share issuance of as much as $300 million to pay for a new space tourism vehicle.
The Richard Branson-founded company reported revenue late Wednesday for the period ending Sept. 30 of $0.4 million, slightly below the $0.53 million consensus of analysts surveyed by Bloomberg. That’s about a 77% plunge from the $1.7 million in the same period a year ago.
Virgin also announced an at-the market equity program in which it would occasionally sell shares worth as much as $300 million to “accelerate develop and production of its next-generation spaceflight fleet.” It’s been burning through some $120 million in cash a quarter after pausing its space tourism trips.
Virgin pared an early drop on Thursday of as much as 13% to trade down 8.5% to $6.51 as of 10:11 a.m. in New York. The shares are down about 87% this year.
The company’s last flight took place in June, and it’s halted further trips while working on its more advanced Delta spaceship expected to enter commercial service in 2026. That’s raised questions about its cash burn rate.
The California-based firm reported a loss per share of $2.66 in the third quarter. Its cash and cash equivalents came to $172.4 million, a 25% drop from a year ago.
Virgin said it finished initial flight control testing and expects to resume ticket sales around a year before Delta flies. The revamped vehicles will hold six passengers, two more than in the vehicle used on previous trips. The new craft also is designed for faster turnaround between missions.
Virgin Galactic aims to have a second “mothership” — used to tote spacecraft to altitude before their midair launches to space — operational around 2028.
Tickets on Delta are expected to go for $600,000 per seat. Delta will be able to clear the existing backlog of around 700 ticket holders in about a year, the company projected.
(Updates from third paragraph with equity offering; Adds opening shares.)
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