SpaceX posts $7.8B revenue but $541M loss in first public earnings

SpaceX on August 4 reported $7.8 billion in revenue for the second quarter of 2025, a 92% increase from the same period in 2024, beating Wall Street expectations. The company also posted a net loss of $541 million, though this was an improvement from the $2 billion loss recorded in the first half of the year. The earnings report, SpaceX’s first as a publicly traded company following its June IPO, highlighted Starlink’s $4.3 billion in revenue and 12 million subscribers, doubling from a year ago.

Capital expenditures surged to $18.4 billion, primarily driven by investments in AI infrastructure and data centers, which accounted for $15.8 billion of total spending. SpaceX also announced a partnership with Nvidia to secure access to advanced graphics processing units (GPUs) for future AI projects. The stock, which had risen 9.4% during regular trading, fell 7% in after-hours trading amid concerns over AI costs and upcoming share unlocks.

Revenue Growth and Profitability Challenges

SpaceX’s Starlink division remained the company’s largest revenue generator, contributing $4.3 billion in the quarter, up from $2.2 billion a year earlier. The satellite internet service now serves 12 million subscribers, with CEO Elon Musk stating that Starlink could eventually deliver “a majority of the world’s internet” within a decade. The space division, which includes rocket launches and satellite deployments, reported $962 million in revenue but posted a $542 million net loss.

The AI segment, including the Grok AI service under xAI, generated $2.6 billion in revenue but incurred a $1.2 billion loss, reflecting high development costs. Musk emphasized that data centers and AI infrastructure are secondary to SpaceX’s core rocket business, stating: “Data centers are a trivial problem compared to making reusable rockets.” The company’s AI compute capacity is expected to expand from 1.4 gigawatts to at least 10 gigawatts by next year.

Market Reaction and Investor Concerns

Despite the revenue beat, SpaceX’s stock dropped 7% in after-hours trading following the report. The decline followed a 9.4% gain during regular trading, underscoring volatility in investor sentiment. The company’s market capitalization has fallen by over $1 trillion since its June IPO, with shares trading at $125.33, well below the $150 IPO price and far from its $225.64 intraday high in mid-June.

Analysts noted that capital expenditures of $18.4 billion—more than double the previous quarter—raised questions about long-term profitability. Bret Johnson, SpaceX’s head of finance, stated that spending would remain at “a very similar level” for the rest of the year. Ken Herbert, an aerospace analyst at RBC Capital Markets, called the results “positive,” noting that the company “delivered on both the top and bottom lines.”

Leadership Perspectives and Future Outlook

SpaceX’s leadership framed the earnings as a step toward its long-term vision, which includes orbital data centers, Mars colonization, and AI infrastructure. Gwynne Shotwell, the company’s president, previously stated that quarterly earnings are not the primary focus, emphasizing instead “futuristic” goals. Bret Johnsen, the chief operating officer, highlighted “significant margin expansion” in AI compute agreements, though the segment remains unprofitable.

Musk reiterated confidence in Starlink’s growth, predicting it could eventually “operate most of the world’s internet.” He also downplayed concerns about AI costs, asserting that “people seem to be underestimating SpaceX.” However, the company’s $1 trillion market valuation has eroded rapidly, with shares losing nearly 40% of their value since the IPO.

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