Key Points Summary
SpaceX’s first quarterly financial report (2026Q2) shows impressive results, but there are still concerns: Revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) have increased significantly. Starlink is the only profitable business, with both a surge in users and government orders. AI business revenue has skyrocketed, but it also comes with high expenses. Major progress has been made in the development of the Starship; however, the company is still in the red. The stock price fell after the report was released and is now facing the pressure of a large-scale stock release.
I. Performance: Growth Exceeds Expectations, but No Profit Yet
In the second quarter of 2026, SpaceX’s total revenue reached $7.8 billion, a 92% increase from the same period last year. EBITDA, which excludes non-operating costs such as depreciation and interest, nearly tripled to $3.5 billion (a 192% increase). This growth is mainly driven by the Starlink and AI businesses.
However, the company has not yet achieved overall profitability: It incurred an operating loss of $143 million (85% less than last year) and a net loss of $541 million (46% less). The most notable aspect is the high level of capital expenditure—$18.369 billion was spent on equipment and projects, more than six times the amount in the same period last year, with most of this investment going into the AI business. This spending trend is expected to continue in the coming quarters.
II. Starlink: The Only Profitable Business, with Surprising Government Orders
Starlink is currently SpaceX’s main source of revenue and the only profitable segment:
- Revenue: $4.29 billion (a 65.8% increase), profit: $1.66 billion (a 79.4% increase)
- Number of users: 12 million (doubled year-over-year, with an additional 1.7 million users)
- Revenue from businesses and governments has grown even faster (108%), including a $6 billion contract from the U.S. government for the Starlink Satellite Defense Network, designed for national security purposes.
Starlink’s rapid expansion is largely due to SpaceX’s launch capabilities; 78 launches were conducted in the first half of this year, most of which were for deploying Starlink satellites.
III. AI Business: Revenue Soars, but High Expenses Continue
The AI business is the most controversial yet fastest-growing segment:
- Revenue: $2.6 billion (a 247% year-over-year increase, 213% quarter-over-quarter), mainly from cloud services (new contracts worth $14.1 billion), the Grok chatbot, and X platform subscriptions
- High expenses: Capital expenditure for the AI business was $15.8 billion (a 105% increase quarter-over-quarter), with an operating loss of $1.3 billion (although 49% less than last year).
- Progress has been rapid: Computing power capacity has increased to 1.4 GW (from 0.4 GW last year), and cooperation with NVIDIA has led to the development of a space data center. The Grok model is being updated frequently, with version 4.5 released this week and version 4.6 expected next week, with version 5 planned for the end of the year.
IV. Starship Development: Major Advances Towards Future Goals
The Starship is SpaceX’s key future initiative, and significant progress was made in Q2:
- Successful testing of the V3 version: The 13th flight in July successfully deployed satellites, restarted engines in space, and achieved a gentle landing, allowing for the observation of the entire thermal shield.
- Next steps: Plans to attempt capturing the Starship using a tower by the end of this month (previously only boosters were recovered). The ship will participate in NASA’s Artemis III mission next year (docking with the Orion spacecraft), and manned lunar missions are set for 2028.
V. Stock Price and Challenges: Financial Report Does Not Boost Stock Price, and Pressure from Stock Releases Looms
- Stock Performance: The stock price rose to $225 after listing but later fell below the issue price. It increased by 9.4% before the report was released, but then dropped more than 9% after its release—market concerns about ongoing losses and high expenses likely contributed to this decline.
- Stock Release Pressure: On the day after the report, up to 911.5 million shares held by internal employees and shareholders will be released (20% of the total shares eligible for release). If these shareholders sell their shares, it could further impact the stock price.
Overall, SpaceX’s business strategy is clear, with Starlink providing immediate revenue and AI representing future growth potential, while the Starship is a long-term focus. However, the company must address short-term challenges related to profitability and stock price stability, particularly high expenses in the AI division and the upcoming stock release.