Virgin Galactic Holdings (SPCE) Waiting to see start of commercial service, and mix up of pricing

Equity Research 14 August 2026 | 4:35PM EDT

Virgin Galactic Holdings (SPCE) Waiting to see start of commercial service, and mix up of pricing; Neutral

SPCE 12m Price Target: $3.30 Price: $3.14 Upside: 5.1% NEUTRAL Noah Poponak, CFA | Our view on the stock post 2Q26 earnings: Goldman Sachs & Co. LLC

SPCE reported 2Q26 revenue in line with consensus, adj. EBITDA Connor Dessert | below consensus, and adj. EPS above consensus. The company Goldman Sachs & Co. LLC

delayed its first commercial spaceflight to February 2027 and plans Nizar Mesani | to have its second spaceship join the fleet in March 2027. The Goldman Sachs India SPL

company’s ticket allotment at the $750k price point was oversubscribed, and new next tranche of tickets will be priced at Key Data _____________________________________ >$750k/passenger. As average ticket prices increase to ~$600k, the Market cap: $347.8mn Enterprise value: $350.7mn company expects a runrate annual EBITDA of ~$100mn, but does 3m ADTV: $142.5mn United States not expect average ticket prices to increase to ~$600k until Americas Aerospace & Defense M&A Rank: 3 sometime in 2028, assuming at least 10/flights per month by the end of 2Q27, as it worked through legacy ticket tranches of GS Forecast __________________________________ 12/25 12/26E 12/27E 12/28E $200-$250k/passenger and $450k/passenger. We continue to see Revenue ($ mn) New

some risks to the timeline and cadence of flights. We remain Neutral Revenue ($ mn) Old EBITDA ($ mn) rated on the stock. EBIT ($ mn) ( ) EPS ($) New ( ) EPS ($) Old ( P/E (X) NM NM NM NM Key elements of the quarter: Dividend yield (%) 0.0 0.0 0.0 0.0 SPCE reported 2Q26 adjusted EBITDA of $(52)mn, compared to Net debt/EBITDA (X) -- -- -- (2.3)

FactSet consensus of $(50)mn and our estimate of $(52)mn. The 6/26 9/26E 12/26E 3/27E company generated $0.1mn of revenue in the quarter. Free cash EPS ($) ( )

flow in the quarter was $(91)mn compared to $(93)mn last quarter GS Factor Profile ______________________________ Growth and $(114)mn a year ago. SPCE expects 3Q26 FCF usage of $(100)-(95)mn, and 4Q26 FCF usage of $(90)-(80)mn. The company Financial Returns

expects to deliver positive quarterly cash flow within 2027. Multiple

Percentile 20th 40th 60th 80th 100th

SPCE relative to Americas Coverage SPCE relative to Americas Aerospace & Defense

Source: Company data, Goldman Sachs Research estimates. See disclosures for details.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Virgin Galactic Holdings (SPCE)

Virgin Galactic Holdings (SPCE) Balance Sheet ($ mn) _______________________________________ NEUTRAL Rating since Oct 23, 2020 12/25 12/26E 12/27E 12/28E Cash & cash equivalents Accounts receivable Inventory 0.0 0.0 0.0 -- Ratios & Valuation __________________________________________ Other current assets /25 12/26E 12/27E 12/28E Total current assets P/E (X) NM NM NM NM Net PP&E EV/EBITDA (X) NM NM NM 15.8 Net intangibles -- -- -- -- EV/sales (X) Total investments 0.0 0.0 0.0 0.0 FCF yield (%) ( Other long-term assets EV/DACF (X) NM NM 4.0 3.3 Total assets ,099.0 CROCI (%) ( ROE (%) ( ) Accounts payable Net debt/EBITDA (X) -- -- -- (2.3) Short-term debt Net debt/equity (%) ( ) Current lease liabilities 0.0 -- -- -- Interest cover (X) ( ) Other current liabilities Inventory days -- -- -- -- Total current liabilities Receivable days -- Long-term debt Days payable outstanding NM 1, Non-current lease liabilities 0.0 -- -- -- Growth & Margins (%) ______________________________________ Other long-term liabilities /25 12/26E 12/27E 12/28E Total long-term liabilities Total revenue growth (78.1) 273.1 NM 116.3 Total liabilities EBITDA growth Preferred shares 0.0 -- -- -- EPS growth Total common…