SpaceX released its first quarterly earnings report since its initial public offering, giving investors a clearer look at the company's financial health. The report highlighted continued growth in Starlink subscribers and a sharp increase in spending on artificial intelligence initiatives.
Starlink's subscriber momentum
The satellite internet division added more than 500,000 new customers during the quarter, pushing the total user base past 4 million. Revenue from Starlink rose 35% year over year, driven by expansion into new markets and lower terminal costs. The company said it now operates in more than 100 countries and territories.
AI spending takes center stage
SpaceX disclosed that capital expenditures on AI-related projects more than doubled compared to the previous quarter. The company is investing in machine learning for autonomous satellite operations, launch scheduling, and data processing. Chief Executive Elon Musk has previously said AI will be critical to making Starlink's network more efficient and to supporting future Mars missions.
First look at public financials
The earnings report marks the first time SpaceX has opened its books to public shareholders since the IPO. The company reported a net loss of $1.2 billion for the quarter, wider than the year-ago period, as it ramped up spending on Starlink and AI. Revenue came in at $8.7 billion, beating analyst expectations. The company's cash position stood at $5.4 billion.
SpaceX did not provide specific guidance for the next quarter, but said it expects Starlink to become cash-flow positive by the end of the year. The company also reiterated its plan to launch the next-generation Starship rocket before the end of 2025.
What investors are watching next
With the first public earnings out of the way, attention now turns to the company's ability to turn Starlink's growth into sustained profitability while managing the rising costs of AI development. The next quarterly report, due in three months, will show whether those investments are paying off.
