Elon Musk's SpaceX delivered stronger-than-expected results in its first quarterly report since going public, with its Starlink satellite-communications business driving both revenue growth and profitability. However, the company's shares fell more than 8% in after-hours trading after it spent over twice its quarterly revenue on AI-related capital expenditures.
SpaceX reported second-quarter revenue of $7.8 billion, or roughly KRW11 trillion, on the 4th, up 92% from a year earlier. The figure exceeded the $6.93 billion consensus estimate compiled by the London Stock Exchange Group (LSEG).
Its operating loss narrowed sharply to $143 million from $970 million a year earlier, while net loss came in at $541 million. According to the Associated Press, analysts had projected a net loss of $1.9 billion.
The main driver of the improved results was the Connectivity division, which includes Starlink. The segment generated $4.29 billion in revenue—more than half of SpaceX's total quarterly sales—and posted operating profit of $1.66 billion, up 79% year on year. It was the company's only profitable business segment.
Starlink's subscriber base also expanded rapidly, doubling from a year earlier to 12 million users. Average revenue per user (ARPU) declined from $85 to $66 as Starlink introduced lower-priced plans and expanded overseas, but strong subscriber growth more than offset the decline. The service is also moving beyond residential satellite internet into aircraft, maritime, enterprise and government communications.
By contrast, SpaceX's AI and space divisions remained loss-making. The AI business, which includes the Grok AI model and X, generated $2.56 billion in revenue but recorded an operating loss of $1.26 billion. The space division posted revenue of $962 million and an operating loss of $542 million.
Capital expenditure reached $18.37 billion during the second quarter, exceeding twice the company's quarterly revenue. Of that total, $15.8 billion was directed toward AI-related investment. This has raised questions over whether cash generated by Starlink can continue to fund both AI infrastructure and development of SpaceX's next-generation Starship launch vehicle.
On the earnings call, Musk said SpaceX was “the best company to build AI infrastructure” and projected that the company would reach $1 trillion in annual revenue by 2030.
