Space Exploration Technologies reported its first quarterly results as a public company on Tuesday, revealing $7.8 billion in second-quarter revenue alongside significant profitability from its Starlink satellite internet business. The financial milestone arrives as the stock trades near $140, carrying a massive valuation of roughly $1.9 trillion.
Inside the First Earnings Report for Space Exploration Technologies
For years, investors could only guess how much money Space Exploration Technologies was generating behind closed doors. That era of speculation officially ended when the company reported its first quarterly results as a public company, giving investors an unprecedented look at the financial performance of one of the world’s most ambitious businesses.
Revenue nearly doubled from a year earlier, reaching $7.8 billion of revenue in the second quarter, up 92% compared to the same period a year prior. Adjusted earnings before interest, taxes, depreciation, and amortization jumped 191% to $3.5 billion. Meanwhile, the net loss narrowed to $541 million.
Those figures give investors an unprecedented look at the financial machinery behind the aerospace company. Beyond traditional rocket launches, the data confirms that revenue generation spans multiple sectors, including satellite internet and artificial intelligence, with the company’s artificial intelligence business already generating billions of dollars in revenue.
Starlink Emerges as a High-Margin Profit Engine
The standout performer within the financial disclosures is Starlink. The satellite internet business generated $4.3 billion of revenue in the quarter, marking a 66% increase from the previous year.
Subscriber growth matched that financial momentum. The user base reached roughly 12 million subscribers, about twice the level from a year ago. More importantly for financial observers, the division brought in approximately $1.66 billion of operating income.
That profitability transforms Starlink from a capital-intensive project into a self-sustaining financial engine. The business can now take the cash generated by Starlink and reinvest it into more satellites, rockets, and infrastructure to expand the network and serve more customers without relying entirely on external financing.
Valuation Pressures and Insiders Eyeing Lockup Expiration
Despite the strong operational numbers, market pressure surrounds the stock. SpaceX stock has shed nearly 30% from its $150 market debut last month and remains down roughly 50% from its all-time high of $225.64, according to reporting from Yahoo Finance.
At the current share price of about $140, the company commands a valuation of roughly $1.9 trillion. Financial observers note that investors are paying for tomorrow’s SpaceX, including continued Starlink growth, the successful development of Starship, and rapidly expanding AI ambitions.
An impending insider lockup expiration threatens to add further friction by freeing up to 20% of shares for sale. Epistrophy Capital’s Cory Johnson noted in a client note that the lockup on Aug. 6 frees hundreds of millions of insider shares—roughly triple the current tradable float—with investors worried that the added supply will keep the stock under pressure.
Capital Expenditures and Future Testing Timelines
Heavy spending remains a core characteristic of the business model. S&P Global Visible Alpha analyst Melissa Otto highlighted that capital expenditures are expected to increase from $48.7 billion this year to $118.4 billion in FY 2028, while overall debt is projected to grow over five times from $41.7 billion this year to over $218.0 billion in FY 2028.
On the hardware front, technical milestones continue to develop in South Texas. The SpaceX Starship and Super Heavy v3 Booster stand at Pad 2 after weather delayed the attempted launch of its 13th test flight from the SpaceX launch complex in Starbase, Texas, on July 23, 2026, according to reporting from Reuters.
The company is eyeing the first-ever tower catch of a Starship upper stage, using the Mechazilla arms at Starbase that have already caught the larger Super Heavy booster. CEO Elon Musk stated in a reply on the upcoming mission, Unless we discover problems after mission data review, SpaceX will attempt to catch the ship with the tower on next flight.
Broader Corporate Strategy and Next Steps
Deutsche Bank analyst Edison Yu said in a note to clients, We estimate a target window in late August or September [for Flight 14].
Yu also noted that Starlink V3 satellites can be deployed on Starship even with partial reusability of the spacecraft.
Beyond aerospace engineering, discussions persist regarding the broader corporate structure linking Musk’s ventures. Musk is reportedly still pushing for a merger between SpaceX and his other major company, Tesla, with The Wall Street Journal reporting that executives are trying to decide how to dispose of Tesla’s China business should that happen, given that SpaceX’s government and national defense contracts could be a concern for the Chinese government.
