Virgin Galactic now targets early Q2 2027 for its first commercial spaceflight, later than its February plan

Virgin Galactic expects to begin commercial spaceflights with its first new-generation spaceship early in the second quarter of 2027, the company said on November 12, 2026, as it reported results for the quarter to September 30. In its previous results, on August 12, it had put the start of service in February 2027. The spaceship, named Apeiron, is now expected to make its first glide flight in January, and a second spaceship is expected to begin commercial service late in the second quarter or early in the third quarter of 2027.

"Spaceship Apeiron's arrival at Spaceport America shifts our focus towards operational readiness," chief executive Michael Colglazier said in the results release.

A later start, and a new share sale

In August the company said flight testing would begin with a captive-carry flight in October and that the second spaceship would join the fleet in March 2027. According to its 10-Q, Apeiron was delivered to the company's operations base at Spaceport America in New Mexico in October, marking the move from assembly to flight test operations. The November release says the company is now preparing for flight test; neither it nor the 10-Q reports a captive-carry flight.

On the same day, Virgin Galactic entered into an agreement with Jefferies to sell up to $250 million of its common stock from time to time, with Jefferies paid a commission of up to 3.0% of the gross price of shares sold through it. The company said it would use any net proceeds for working capital, including operations before and after commercial service begins; for a new high-cadence launch hangar and fueling infrastructure and expanded rocket production; and to repay part of its debt. The terms of its 9.80% First Lien Notes due 2028 require at least 35% of the net cash proceeds to go toward redeeming those notes, the filing says. It also plans privately negotiated exchanges of its 2.50% convertible notes due 2027 for shares, which it expects to complete in the fourth quarter, though any exchange may come later or not at all.

The 10-Q filed with the results says management concluded there is substantial doubt about the company's ability to continue as a going concern for 12 months after the financial statements are issued. That evaluation, under the accounting standard it applies, leaves out planned revenue, capital raising and changes to debt terms. Its plans to ease the doubt include starting commercial service early in the second quarter of 2027, collecting final payments from future astronauts, selling a limited number of early flights at a premium, raising money through debt or equity, and settling debt with stock. The company says those plans are not fully within its control.

The quarter in numbers

Revenue came from future astronauts' access fees and an event for them, the company said. Cash, cash equivalents and marketable securities stood at $286 million on June 30, according to the August release, so by our arithmetic they fell by $102 million during the quarter. Free cash flow of minus $99 million fell within the range of minus $95 million to minus $100 million that the company had forecast in August, by our comparison. For the fourth quarter it still expects free cash flow of minus $80 million to minus $90 million. Under its 10-Q, $17.9 million of the 2027 notes remains outstanding, due at maturity in February 2027.

Seats, ships and capacity

The company has opened a new tranche of bookings at $850,000 per seat, after selling out a tranche priced at $750,000 during the third quarter. As of October 31 it held reservations from more than 700 future astronauts, representing about $237 million in expected future spaceflight revenue, according to the 10-Q. More than 100 of them have begun preparing for their flights, the release says.

With its first two new spaceships, Virgin Galactic says it aims to reach 125 commercial space missions a year. The new launch hangar and fueling facilities, planned to open in the second half of 2028, are expected to raise that capacity by 20% to 150 spaceflights a year by the end of 2028. Construction of a rocket motor production facility at its spaceship factory in Arizona is complete, with final occupancy approval pending.

What comes next

Next come Apeiron's first glide flight in January and commercial service early in the second quarter of 2027. Both are forecasts, and the company lists flight delays among the risks that could change them. Jefferies is not required to sell any set amount of stock.