SpaceX has issued its first earnings report since its initial public offering (IPO), announcing a 92% jump in revenue to $7.8bn in the three months to June.
Of this revenue, $962m came from the space portion of the business, $4.3bn from connectivity and $2.6bn from AI.
The company remains not profitable, reporting a loss of $541m – down from a $1bn loss in the same quarter last year. SpaceX lost just shy of $5bn in 2025.
This follows a blockbuster IPO in June, which transformed it into a $2trn company and crowned founder Elon Musk as the world’s first trillionaire.
But the path has not run smooth, with the company’s stock falling around 25% by early July. On 4 August, SpaceX closed trading at $125 a share, down from its IPO price of $135 a share.
While market experts agree the quarter’s earnings report is largely positive, the longer-term trajectory of the company is still up for debate.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, welcomed the strong quarterly results but noted that, at such an early stage in its public life, “beating consensus carries little real weight”.
The company is also rapidly evolving, with analysts still trying to work out what the business really is, as Musk outlines some of his big goals over the next decade.
SpaceX is currently composed of its core aerospace operations, the Starlink satellite internet division and AI platform xAI, each promising ambitious developments over the next 10 years.
For example, next month, Musk has announced the company will launch its next Starship flight test, in which it aims to send its first upgraded Starlink satellites into orbit and return the rocket system’s upper stage to land for the first time.
“Starship and the next generations of Starlink remain critical to the post-2030 vision, but the financial engine over the next few years will increasingly be AI,” Britzman said, noting that “Musk has effectively gone all-in on building AI infrastructure”.
SpaceX spent more than $10bn on AI infrastructure in the first quarter of this year. In the second, it invested another $18.4bn. It said AI revenues grew 247% year-over-year.
“While demand remains high and SpaceX can bring clusters online faster than rivals, that looks like a compelling way to turn speed and access to hardware into revenue,” Britzman said.
“So long as demand for intelligence continues to ramp (and it’s hard for us to see that trend shifting) rental contracts should keep growing as more capacity comes online. SpaceX could soon resemble an AI infrastructure company with an extraordinary space business attached, and that is not an unattractive combination.”
The results were “encouraging” for Garry White, chief investment commentator at Raymond James. However, he noted, potentially choppy waters lie ahead as SpaceX will be issuing over 900 million shares on Thursday 6 August – more than double the current amount available.
Those who acquired shares in the space and AI company before its public listing did so at a fraction of the price, so they stand to make big gains should they sell when the share lock-up expires. But these sales could then pile pressure on the stock price.
“While an unlock does not necessarily mean there will be a flood of selling from insiders, the prospect of a substantial increase in supply will act as an overhang and could weigh on the share price in the near term,” White said.
“Conversely, if insider selling proves limited, this could be interpreted as a vote of confidence in the company's longer-term prospects, providing a prop for the share price.”
But not everyone felt encouraged.
Russ Mould, investment director at AJ Bell, said: “As visual metaphors go, the fact a SpaceX rocket crashed into the moon hours after it had delivered its debut quarterly earnings feels almost too on the nose.”
He said the concern isn’t around the numbers themselves, as revenue did beat expectations and losses were narrower than anticipated, but around the heavy AI spending revealed in the results.
“This is something the market has taken exception to at many of SpaceX’s peers and the scale of the outlays on AI and how much over and above they were on analysts’ expectations were key factors behind the backlash,” Mould said.
“A significant difference between SpaceX and some of the other free spending participants in the AI arms race is that it does not yet generate meaningful levels of cash flow.”
Despite this level of spending, Mould pointed out that, right now, it is SpaceX’s Starlink that generates the bulk of the company’s revenue, with Musk hinting that Starlink could next build a terrestrial mobile network to compete with T-Mobile, AT&T and Verizon.
“This has sparked some nervousness and seen these established names take a bit of a share price hit,” he noted.
“Though Musk has lots of things on his to-do list at SpaceX, so there may be hopes in the boardrooms of these businesses that other areas take priority.”
His to-do list includes the lofty ambition of colonising Mars, as well as building lunar bases and data centres in space.
“Questions are also likely to persist about a tie-up with Tesla, something Musk and other SpaceX executives didn’t rule out,” Mould added.
“For many investors in both SpaceX and Tesla, their interest is linked to Musk’s entrepreneurship, so bringing his entire empire under one roof is an idea which may continue to get plenty of airtime.”