SpaceX has left the launchpad, but the mission is just beginning
Commenting on SpaceX’s first earnings after IPO, James Bull, Technology Industry Senior Analyst, RSM UK said: "SpaceX's first results as a public company are more encouraging than many investors expected. Revenue of $7.8 bn was 15% ahead of forecasts and nearly double the same period last year, losses narrowed and the AI division delivered stronger commercial progress than anticipated.
“However, the broader investment case remains largely unchanged from the company's IPO in June. “Starlink continues to be the group's established revenue and profit engine, but the loss-making AI division is where the long-term bet sits. The AI business generated $2.6 bn in Q2, but is still running at an operating loss of $1.3 bn.
“While these results provide evidence of commercial traction, the more important test will be in the next quarter. The business is still investing heavily, with capital expenditure of more than $18bn in the quarter, a significant proportion of which related to AI infrastructure, which requires significant future revenue growth to justify. SpaceX says that, as recently announced compute agreements with customers including Google and Anthropic go live, the AI division could reach an annualised revenue run rate of $100 bn by December, compared with $3.2 bn revenue in 2025. The next set of results should provide the first insight of how quickly these agreements are translating into reported revenue.”