SpaceX released its first quarterly earnings report as a public company, revealing a 92% surge in revenue to $7.8 billion for the second quarter, surpassing analyst expectations of $6.9 billion. Despite beating revenue and loss per share estimates (reporting a 9-cent loss per share compared to an expected 26-cent loss), the company's stock experienced a post-market decline of 6.5% to 9% after an initial 9% rise during regular trading hours.
The primary driver for this investor anxiety was the company's substantial capital expenditures, particularly in its xAI unit. AI-related spending hit $15.8 billion, exceeding expectations of $13.09 billion and nearly doubling the previous quarter's figure. This AI spending constituted the majority of SpaceX's total quarterly capital expenditure of $18.4 billion, which itself represented a 550% increase from the prior year. The overall spending led to a net loss of $2 billion in the first half of the year.
Adding to investor concerns is the impending expiration of a lock-up period, starting this week, which will allow 911 million shares held by insiders and early investors to be sold on the open market. This potential influx of supply, combined with the high spending, is seen as a significant pressure point on the stock. CEO Elon Musk indicated that capital spending would remain at similar levels for the rest of the year, while Bret Johnson, head of finance, noted that the Starlink satellite internet service was profitable, bringing in $1.6 billion in the second quarter.
