Space Exploration Technologies Corp.
SPCX · Nasdaq
Next quarter
Consensus is $0.04 EPS for Sep 2026 across 8 estimates, ranging -$0.21 to $0.27.
SPCX Jun 2026
- 65.38%
- -13.61%
- -$0.26
- -$0.09
- —
- $7.81B
Reported results
- $7.81B
- 55.27%
- -$143.00M
- -1.83%
- -$541.00M
- -$0.09
Highlights
- Revenue was $7.814 billion, up 91.9% year over year; six-month revenue was $12.508 billion, up 53.7%.
- Connectivity generated $4.291 billion of revenue and $1.656 billion of operating income, while Space generated $962 million of revenue and a $542 million operating loss.
- AI revenue reached $2.561 billion, but the segment posted a $1.257 billion operating loss; total reportable-segment operating loss was $143 million.
- Starlink subscribers doubled to 12.0 million from 6.0 million, while monthly subscriber ARPU declined to $66 from $85; nameplate compute draw increased to 1.4 gigawatts from 0.4 gigawatts.
- Capital expenditures were $18.369 billion in the quarter and $28.476 billion for the first six months, including $15.828 billion in AI; management expects the Cursor merger to close during the third quarter of 2026, subject to conditions including regulatory approvals.
Analysis
No consensus figures are on file, so the quarter cannot be judged against an external estimate. Revenue rose 91.9% year over year to $7.814 billion, accelerating the business’s scale versus the 53.7% increase recorded for the first six months. Connectivity was the clear earnings engine, producing $4.291 billion of revenue and $1.656 billion of operating income, supported by subscriber growth to 12.0 million despite ARPU falling to $66 from $85. Space revenue increased to $962 million, but its $542 million operating loss reflected $1.076 billion of R&D expense and $1.174 billion of capital expenditures. AI revenue reached $2.561 billion, yet its $1.257 billion operating loss was overwhelmed by $2.178 billion of R&D and $15.828 billion of capital expenditures. Consolidated reportable-segment operating loss was $143 million, while loss before taxes was $518 million. The net loss supplied for Q2 FY2026 was $540 million, improved from $1.01 billion in Q2 FY2025.
Guidance
Management did not provide revenue, operating-income, margin, subscriber, capex, or other quantitative guidance in the supplied material. The principal forward-looking timing statement is that the Cursor merger is currently expected to close during the third quarter of 2026. That outcome remains dependent on satisfaction or waiver of closing conditions, including requisite regulatory approvals. The company also states that it expects to allocate a significant amount of launch capacity to AI in the future, but provides no timetable, range, or financial target for that allocation. The Mesh Optical merger closed on July 6, 2026, and its purchase-price allocation remains to be finalized.
What drove it
- Connectivity growth — Connectivity revenue was $4.291 billion, with 12.0 million Starlink subscribers versus 6.0 million a year earlier.
- AI investment — AI generated $2.561 billion of revenue but incurred $2.178 billion of R&D expense and $15.828 billion of capital expenditures.
- Space throughput — Space completed 37 Falcon launches and one Starship launch, while mass to orbit was 485 metric tons.
- Subscriber monetization — Starlink monthly ARPU was $66, down from $85 in the comparable quarter.
- Compute expansion — Nameplate compute draw reached 1.4 gigawatts, compared with 0.4 gigawatts as of June 30, 2025.
Watch items
- AI remained loss-making, with a $1.257 billion operating loss despite $2.561 billion of revenue, as R&D and infrastructure investment expanded.
- Capital intensity is extreme: quarterly capex was $18.369 billion, including $15.828 billion in AI, while the company reported a $143 million reportable-segment operating loss.
- Starlink ARPU declined to $66 from $85 even as subscribers increased to 12.0 million, creating a monetization pressure within the fastest-growing segment.
- Space posted a $542 million operating loss, and Falcon launches declined to 37 from 45 in the comparable quarter.
