SpaceX's First Earnings Report: Revenue Up 92% but Stock Falls on Capex Concerns

SpaceX released its second-quarter earnings on Tuesday, marking its first report since its June IPO. The company posted $7.8 billion in revenue, a 92% increase year-over-year, surpassing Wall Street expectations of $6.8 billion. Net loss narrowed to $541 million from $1 billion in the prior year, while adjusted EBITDA surged 191% to $3.5 billion. Despite the strong top-line results, shares fell as much as 8% in after-hours trading due to capital expenditures of $18.4 billion, significantly higher than the $10.1 billion in the previous quarter and above analyst forecasts of $13 billion. All three business segments beat estimates: connectivity (including Starlink) revenue rose 66% to $4.3 billion, with 12 million subscribers; space segment revenue grew 29% to $962 million, but posted an operating loss of $542 million due to Starship R&D; AI segment (including xAI, X, and cloud services) revenue jumped 247% to $2.56 billion, with an operating loss of $1.26 billion. SpaceX ended the quarter with $100 billion in cash and $47.5 billion in backlog. The stock has struggled since its IPO, dropping below the $135 IPO price after a failed Starship engine ignition in July. A lockup expiration later this week will release over $100 billion in shares, potentially adding further pressure.