VIRGIN GALACTIC HOLDINGS, INC, 10-K filed on 3/30/2026
Annual Report
v3.26.1
Cover Page - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Mar. 23, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-38202    
Entity Registrant Name Virgin Galactic Holdings, Inc    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 85-3608069    
Entity Address, Address Line One 1700 Flight Way    
Entity Address, City or Town Tustin    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 92782    
City Area Code 949    
Local Phone Number 774-7640    
Title of 12(b) Security Common stock, $0.0001 par value per share    
Trading Symbol SPCE    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Non-accelerated Filer    
Entity Small Business true    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag false    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 147.6
Entity Common Stock, Shares Outstanding   81,408,715  
Documents Incorporated by Reference
Portions of the registrant’s definitive proxy statement relating to its annual meeting of stockholders to be held in 2026 (the “2026 Annual Meeting”), to be filed with the Securities and Exchange Commission (the “SEC”) within 120 days after the end of the fiscal year to which this Annual Report on Form 10-K relates, are incorporated herein by reference where indicated. Except with respect to information specifically incorporated by reference in this Annual Report on Form 10-K, such proxy statement is not deemed to be filed as part hereof.
    
Amendment Flag false    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001706946    
v3.26.1
Audit Information
 12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Name Ernst & Young LLP
Auditor Location Wichita, Kansas
Auditor Firm ID 42
v3.26.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 144,727 $ 178,605
Restricted cash 30,988 32,280
Marketable securities, short-term 162,313 384,621
Other current assets 34,870 32,430
Total current assets 372,898 627,936
Marketable securities, long-term 0 61,280
Property, plant and equipment, net 388,730 209,114
Other non-current assets 41,551 62,895
Total assets 803,179 961,225
Current liabilities:    
Accounts payable 15,163 3,696
Current portion of long-term debt 47,830 0
Customer deposits 78,535 84,493
Other current liabilities 67,795 61,821
Total current liabilities 209,323 150,010
Non-current liabilities:    
Long-term debt 276,362 420,120
Other long-term liabilities 43,530 68,815
Total liabilities 529,215 638,945
Commitments and contingencies (Note 16)
Stockholders’ Equity    
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding 0 0
Common stock, $0.0001 par value; 700,000,000 shares authorized; 73,326,504 and 32,995,822 shares issued and outstanding as of December 31, 2025 and 2024, respectively 7 3
Additional paid-in capital 3,025,604 2,794,871
Accumulated deficit (2,751,779) (2,472,872)
Accumulated other comprehensive income 132 278
Total stockholders’ equity 273,964 322,280
Total liabilities and stockholders’ equity $ 803,179 $ 961,225
v3.26.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 700,000,000 700,000,000
Common stock, shares issued (in shares) 73,326,504 32,995,822
Common stock, shares outstanding (in shares) 73,326,504 32,995,822
v3.26.1
Consolidated Statements of Operations and Comprehensive Loss - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Income Statement [Abstract]    
Revenue $ 1,544 $ 7,036
Operating expenses:    
Spaceline operations 72,769 90,024
Research and development 80,466 152,678
Selling, general and administrative 117,167 125,496
Depreciation and amortization 16,485 15,467
Total operating expenses 286,887 383,665
Operating loss (285,343) (376,629)
Interest income 21,842 42,352
Interest expense (12,782) (12,927)
Debt restructuring expense (2,798) 0
Other income, net 226 538
Loss before income taxes (278,855) (346,666)
Income tax expense 52 74
Net loss (278,907) (346,740)
Other comprehensive income (loss):    
Foreign currency translation adjustment 6 0
Unrealized loss on marketable securities (152) (93)
Total comprehensive loss $ (279,053) $ (346,833)
Net loss per share:    
Basic (in dollars per share) $ (5.44) $ (13.89)
Diluted (in dollars per share) $ (5.44) $ (13.89)
Weighted-average shares outstanding:    
Basic (in shares) 51,242 24,955
Diluted (in shares) 51,242 24,955
v3.26.1
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Registered Offering
At The Market Offering
Pre-Funded Warrant
Purchase Warrant
Common Stock
Common Stock
Registered Offering
Common Stock
At The Market Offering
Common Stock
Pre-Funded Warrant
Additional Paid-in Capital
Additional Paid-in Capital
Registered Offering
Additional Paid-in Capital
At The Market Offering
Additional Paid-in Capital
Pre-Funded Warrant
Additional Paid-in Capital
Purchase Warrant
Accumulated Deficit
Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2023           19,995,449                    
Beginning balance at Dec. 31, 2023 $ 505,476         $ 2       $ 2,631,235         $ (2,126,132) $ 371
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                
Net loss (346,740)                           (346,740)  
Other comprehensive loss (93)                             (93)
Stock-based compensation for equity-classified awards 29,109                 29,109            
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (in shares)           102,858                    
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (1,207)                 (1,207)            
Issuance of common stock pursuant to offering (in shares)               12,897,652                
Issuance of common stock pursuant to offering     $ 137,796         $ 1       $ 137,795        
Transaction costs (2,059)                 (2,059)            
Fractional share adjustment due to reverse stock split (in shares)           (137)                    
Fractional share adjustment due to reverse stock split $ (2)                 (2)            
Ending balance (in shares) at Dec. 31, 2024 32,995,822         32,995,822                    
Ending balance at Dec. 31, 2024 $ 322,280         $ 3       2,794,871         (2,472,872) 278
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                
Net loss (278,907)                           (278,907)  
Other comprehensive loss (146)                             (146)
Stock-based compensation for equity-classified awards 18,431                 18,431            
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (in shares)           195,555                    
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (183)                 (183)            
Issuance of warrants       $ 26,872 $ 62,517               $ 26,872 $ 62,517    
Exercises of pre-funded warrants (in shares)                 4,265,138              
Exercises of Pre-Funded Warrants       $ 1         $ 1              
Issuance of common stock pursuant to offering (in shares)             2,181,485 33,491,348                
Issuance of common stock pursuant to offering   $ 7,003 $ 121,643         $ 3     $ 7,003 $ 121,640        
Issuance of common stock pursuant to employee stock purchase plan (in shares)           197,156                    
Issuance of common stock pursuant to employee stock purchase plan 473                 473            
Transaction costs $ (6,020)                 (6,020)            
Ending balance (in shares) at Dec. 31, 2025 73,326,504         73,326,504                    
Ending balance at Dec. 31, 2025 $ 273,964         $ 7       $ 3,025,604         $ (2,751,779) $ 132
v3.26.1
Consolidated Statements of Cash Flows
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Cash flows from operating activities:    
Net loss $ (278,907) $ (346,740)
Stock-based compensation 18,698 29,752
Depreciation and amortization 16,485 15,467
Amortization of debt issuance costs 2,292 2,234
Accretion of marketable securities purchased at a discount (6,071) (16,635)
Other non-cash items (4) 1,457
Change in operating assets and liabilities:    
Other current and non-current assets (3,609) 10,566
Accounts payable 11,220 (29,203)
Customer deposits (5,958) (13,348)
Other current and non-current liabilities 5,712 (6,253)
Net cash used in operating activities (240,142) (352,703)
Cash flows from investing activities:    
Capital expenditures (198,045) (121,855)
Purchases of marketable securities (313,043) (543,434)
Proceeds from maturities and calls of marketable securities 601,923 840,335
Other investing activities 8 610
Net cash provided by investing activities 90,843 175,656
Cash flows from financing activities:    
Proceeds from issuance of long-term debt 212,496 0
Repurchase of convertible debt (320,601) 0
Debt issuance costs (1,827) 0
Payments of finance lease obligations (211) (193)
Proceeds from issuance of Purchase Warrants 62,517 0
Proceeds from issuance of common stock pursuant to ESPP 473 0
Withholding taxes paid on behalf of employees on net settled stock-based awards (183) (1,207)
Other financing activities 0 (2)
Net cash provided by financing activities 114,129 134,340
Net decrease in cash, cash equivalents and restricted cash (35,170) (42,707)
Cash, cash equivalents and restricted cash at beginning of year 210,885 253,592
Cash, cash equivalents and restricted cash at end of year 175,715 210,885
Cash and cash equivalents 144,727 178,605
Restricted cash 30,988 32,280
Cash, cash equivalents and restricted cash 175,715 210,885
At The Market Offering    
Cash flows from financing activities:    
Proceeds from issuance of common stock pursuant to at-the-market offering 121,643 137,796
Transaction costs related to issuance of common stock (3,523) (2,054)
Registered Offering    
Cash flows from financing activities:    
Proceeds from issuance of common stock pursuant to at-the-market offering 45,588 0
Warrants    
Cash flows from financing activities:    
Transaction costs related to issuance of common stock $ (2,243) $ 0
v3.26.1
Organization
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization Organization
Virgin Galactic Holdings, Inc., together with its consolidated subsidiaries (“Virgin Galactic” or the “Company”), is an aerospace and space travel company focused on the development, manufacture and operation of spaceships and related technologies. The Company provides access to space for private individuals, researchers and government agencies. The Company’s missions include flying passengers to space, as well as flying scientific payloads and researchers to space in order to conduct experiments for scientific and educational purposes.
v3.26.1
Liquidity and Financial Condition
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Liquidity and Financial Condition Liquidity and Financial Condition
The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern and will be able to realize its assets and satisfy its liabilities in the normal course of business.
The Company is currently in the pre-commercial service phase and accordingly has no spaceflight revenue. The Company has recently used significant cash for operating activities and capital expenditures primarily related to the development of its next-generation spaceships and expects to continue to incur significant operating expenses and capital expenditures to complete the production of these spaceships and place them into commercial operation.
In preparation of the consolidated financial statements, management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for twelve months from the date the consolidated financial statements are issued, in accordance with the requirements of the Financial Accounting Standard Board's Accounting Standards Codification (“ASC”) Topic 205-40, Presentation of Financial Statements - Going Concern (“ASC 205-40”).
Factors, among others, that are included in management’s evaluation are:
•cash, cash equivalents, and marketable securities on hand as of the date the consolidated financial statements are issued;
•all company costs that are forecasted to be incurred over the upcoming twelve months from the date the consolidated financial statements are issued, including costs expected to be incurred in completing fabrication and testing of the next-generation spaceships and costs expected to be incurred in the ramp-up to, and commercial operation of, spaceflights; and
•all contractual debt payments due within the next twelve months are assumed to be settled in cash.
Items that are planned or expected by management, but the execution of which may not be fully under management’s control, are not included in management’s evaluation in accordance with ASC 205-40. Factors, among others, excluded from management’s evaluation include:
•Revenues: any revenues or cash receipts, from spaceflights or otherwise, planned during the upcoming twelve months.
•Capital Market Transactions: any proceeds from capital market transactions, whether from debt issuance, equity issuance, or otherwise.
•Debt Repayment Terms: any change of contractual debt repayment schedules or settlement methods.
Management’s evaluation, which excluded the items that are not within its control (i.e., Revenues, Capital Market Transactions, and Debt Repayment Terms), resulted in the determination that the Company may not have sufficient cash and marketable securities to maintain its planned operations for the next twelve months following the issuance date of the consolidated financial statements and has concluded that there are conditions present in the aggregate that raise substantial doubt about the Company’s ability to continue as a going concern pursuant to ASC 205-40.
Management’s plans that are intended to mitigate the conditions or events that raise substantial doubt include implementing some or all of the following initiatives:
•Commencing commercial service in the fourth quarter of 2026, as currently planned.
•Generating significant cash from the current backlog of future astronauts as their final payments become due in advance of their spaceflight.
•Offering the sale of a limited number of early spaceflights at a premium to historical prices.
•Increasing cash on hand through additional debt or equity financing, including use of the Company’s existing “at-the-market” equity offering program.
•Partnering with third parties to fund and accelerate the pace of future space vehicle development.
•Settling debt through the issuance of equity and/or extending maturities of certain debt payments that are due within the period.
The plans discussed above are subject to market conditions and, while management intends to apply its best efforts to the execution of these plans, they are not fully within the Company’s control and therefore cannot be deemed to be probable in accordance with ASC 205-40, and as a result, management has concluded that its plans do not alleviate substantial doubt about the Company’s ability to continue as a going concern for twelve months after the date that the consolidated financial statements are issued.
The accompanying consolidated financial statements do not include any adjustments related to the carrying amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern.
v3.26.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
These consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). All intercompany transactions and balances between the various legal entities comprising the Company have been eliminated in consolidation.
Reverse Stock Split
On June 14, 2024, the Company effected a 1-for-20 reverse stock split of the Company’s common stock (the “Reverse Stock Split”). As a result of the Reverse Stock Split, every 20 shares of the Company’s common stock issued or outstanding were automatically reclassified into one new share of common stock. Proportionate adjustments were also made to the exercise prices and the number of shares underlying the Company’s outstanding equity awards, as applicable, as well as to the number of shares issuable under the Company’s equity incentive plans and certain existing agreements. The Reverse Stock Split did not decrease the number of authorized shares of common stock or otherwise affect the par value of the common stock. No fractional shares were issued in connection with the Reverse Stock Split. Stockholders who were otherwise entitled to receive fractional shares as a result of the Reverse Stock Split were paid cash in lieu thereof. All shares of the Company’s common stock, per-share data and related information included in the accompanying consolidated financial statements have been retroactively adjusted as though the Reverse Stock Split had been effected prior to all periods presented.
Use of Estimates
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are based on historical experience and on various other assumptions that management believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates. Significant estimates and judgments affecting the consolidated financial statements are those related to long-lived assets, income taxes, stock-based compensation and warrants.
Cash and Cash Equivalents
The Company considers all highly liquid investments with an original maturity of three months or less on their acquisition date to be cash equivalents.
Restricted Cash
Restricted cash consists of cash deposits received from future astronauts that are contractually restricted for operational use until the condition of carriage is signed or the deposits are refunded.
Marketable Securities
The Company’s marketable securities consist primarily of debt securities that are accounted for as “available-for-sale.” Management determines the appropriate classification of investments at the time of purchase and reevaluates the classification at each balance sheet date. Marketable securities are classified as short-term and long-term based on the instrument’s underlying contractual maturity date. The Company’s marketable securities are carried at fair value, with unrealized gains and losses, net of income taxes, reported as a component of accumulated other comprehensive income in the consolidated balance sheets, with the exception of unrealized losses believed to be other-than-temporary, which are reported in the consolidated statements of operations and comprehensive loss in the period in which such determination is made.
Concentration of Credit Risk
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents, restricted cash and marketable securities. Cash and cash equivalents are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits.
The Company invests primarily in debt securities, the majority of which are high investment grade. In accordance with the Company’s investment policy, exposure to credit risk is limited by the diversification and investment in highly rated securities.
Property, Plant and Equipment
Property, plant and equipment are stated at cost. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease term or estimated useful life.
The estimated useful lives are as follows:
AssetUseful Life
Buildings39 years
Flight vehicles and rotables
2 to 20 years
Machinery and equipment
2 to 7 years
Information technology software and equipment
3 to 6 years
Leasehold improvementsShorter of the estimated useful life or lease term
Repair and maintenance costs are expensed as incurred.
Leases
The Company determines whether an arrangement contains a lease at inception. For identified leases, the Company determines whether it should be classified as an operating or finance lease. Operating leases are recorded in the balance sheet as a right-of-use asset (“ROU asset”) and operating lease obligation. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the commencement date of the lease and measured based on the present value of lease payments over the lease term. The Company’s lease arrangements generally do not provide an implicit interest rate. As a result, in such situations, the Company uses its incremental borrowing rate, which was determined based on market yields. The Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option in the measurement of its ROU assets and liabilities. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company has some lease agreements with lease and non-lease components, which are accounted for as a single lease component. Variable lease payments primarily consist of lease payments resulting from
changes in the consumer price index. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the change occurs. Variable payments for common area maintenance costs and taxes are not included in determining lease payments and are expensed as incurred. The Company does not recognize ROU assets and lease liabilities for leases with terms at inception of twelve months or less.
Long-Lived Assets
Long-lived assets primarily consist of property, plant and equipment and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset group to its carrying amount. The Company assesses impairment for asset groups, which represent a combination of assets that produce distinguishable cash flows. If the carrying amount of the asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. During the years ended December 31, 2025 and 2024, no material asset impairments were recorded.
Debt Issuance Costs and Premiums
Debt issuance costs and premiums are presented in the consolidated balance sheets as a direct deduction from or addition to the carrying amount of the related debt and are amortized or accreted, using the effective interest method, as interest expense over the contractual lives of the related debt.
The Company accounts for exchanges of debt in accordance with ASC 470-60, Troubled Debt Restructurings by Debtors (“ASC 470-60”), which has resulted in certain debt being carried at a premium relative to its principal amount as well as a portion of contractual interest cost being recorded as a reduction of that premium rather than as interest expense.
Convertible Senior Notes
Convertible debt instruments are separated into multiple components if they are issued at a substantial premium or if embedded derivatives requiring bifurcation are identified. The Company’s convertible senior notes (the “2027 Notes”) were not issued at a substantial premium, and the Company analyzed the provisions of the notes and did not identify any material embedded features which would require bifurcation from the host debt. As such, the notes are accounted for entirely as a liability, net of unamortized issuance costs. At the end of each reporting period, the Company evaluates whether conditions are present that would require bifurcation. The embedded conversion features are not remeasured as long as they do not meet the separation requirement of a derivative. The impact of convertible instruments on diluted earnings per share is calculated using the if-converted method.
Capped Call Transactions
In connection with the pricing of the 2027 Notes, the Company entered into capped call transactions with respect to its common stock (the “2027 Capped Calls”). The 2027 Capped Calls are purchased call options that give the Company the option to purchase shares of the Company’s common stock, subject to anti-dilution adjustments substantially identical to those in the 2027 Notes. The Company’s capped call transactions are accounted for as separate transactions from the 2027 Notes and are classified as equity instruments as a reduction to additional paid-in capital in the accompanying consolidated balance sheets. The instruments are initially recorded at fair value and not subsequently remeasured so long as they continue to qualify for equity classification based on the Company’s intent and ability for the 2027 Capped Calls to be settled in shares of the Company’s common stock. At the end of each reporting period, the Company evaluates whether the instruments continue to qualify for equity classification. The capped call transactions have the effect of reducing the number of shares outstanding if exercised, hence reduces the potential dilution. Therefore, the capped call transactions are anti-dilutive and not included in the calculation of diluted shares outstanding. See Note 9 for additional information on the 2027 Capped Calls.
Warrants
The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms. The assessment considers whether the warrants are freestanding financial instruments and whether the warrants meet all of the requirements for equity classification, including whether the warrants are indexed to the Company’s own common stock. Warrants that meet all of the criteria for equity classification are recorded in stockholders’ equity at fair value as of the date of issuance and are not remeasured to fair value in subsequent reporting periods.
Warrants that do not meet the criteria for equity classification are recorded as liabilities at fair value, with changes in fair value recognized in earnings each reporting period.
The Company’s issued warrants meet the criteria for equity classification.
Fair Value Measurements
Assets and liabilities subject to fair value measurements are required to be disclosed within a fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair value. Accordingly, assets and liabilities carried at fair value are classified within the fair value hierarchy in one of the following categories:
• Level 1 inputs — Quoted prices in active markets for identical assets or liabilities.
• Level 2 inputs — Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.
• Level 3 inputs — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability.
Segments
Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer.
The Company has determined that it operates in one operating segment and one reportable segment, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources and evaluating financial performance. The CODM assesses performance for the segment and decides how to allocate resources based on net loss that is reported on the consolidated statements of operations and comprehensive loss. The CODM uses net loss to assess financial performance and allocate resources to align with company-wide goals. Further, the measure of segment assets is reported on the consolidated balance sheets as total assets.
Revenue Recognition
The Company recognizes revenue when control of the promised service is transferred to its customers in an amount that reflects the consideration the Company expects to receive based on the contracted amount for those services. For contracts which include a combination of services, the Company assesses and accounts for individual services separately if they are distinct performance obligations, which often requires judgment based upon knowledge of the services and structure of the sales contract. The Company allocates the contract price to each performance obligation based on the estimated standalone selling price using observable pricing from our contracts with single performance obligations.
Human spaceflight services are those services provided to the majority of the Company’s customers. Spaceflight service revenue is recognized at a point in time upon successful completion of a spaceflight. The Company recognizes revenue for astronaut community access fees, engineering services and sponsorships over the term of the respective arrangement.
Contract balances
Contract assets are comprised of billed accounts receivable and unbilled receivables, which is the result of timing of revenue recognition, billings and cash collections. The Company records accounts receivable when it has an unconditional right to consideration.
Contract liabilities relate to spaceflight operations and other revenue contracts and are recorded when cash payments are received or due in advance of performance. Cash payments for spaceflight services are classified as customer deposits until enforceable rights and obligations exist, when such deposits also become nonrefundable. Customer deposits become nonrefundable and are recorded as deferred revenue following the Company’s delivery of the conditions of carriage to the customer and execution of an informed consent.
Spaceline Operations
Spaceline operations expense includes costs to maintain and operate the Company’s spaceflight systems; non-capitalizable costs to build new vehicles and manufacture items required to support the making of the Company’s vehicles, such as rocket motors and spare parts; the consumption of rocket motors, fuel and other consumables; costs to maintain and support the Company’s astronaut community; and costs to provide payload cargo and engineering services.
Research and Development
Research and development expenses represent costs incurred to support activities that advance the Company’s future fleet towards commercialization, including basic research, applied research, concept formulation studies, design, development, and related testing activities. Research and development costs consist primarily of equipment, material, and labor costs (including from third-party contractors) for designing the spaceflight system’s structure, spaceflight propulsion system, and flight profiles for next-generation spaceships and launch vehicles, as well as allocated facilities and other supporting overhead costs.
Income Taxes
Income tax expense is computed using the asset and liability method. Deferred tax assets and liabilities are determined based on the temporary differences between the financial reporting and tax bases of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the differences are expected to reverse. Future income tax benefits are recognized only to the extent that the realization of such benefits is considered to be more likely than not. The Company regularly reviews its deferred tax assets for recoverability and establishes a valuation allowance, when it is more likely than not that such deferred tax assets will not be recoverable, based on historical taxable income, projected future taxable income, and the expected timing of the reversals of the existing temporary differences.
Stock-Based Compensation
The Company accounts for stock-based compensation under the fair value recognition and measurement provisions, in accordance with applicable accounting standards, which require compensation expense for the grant-date fair value of stock-based awards to be recognized over the requisite service period. Forfeitures are accounted for when they occur.
Service-Based Awards
The Company estimates the fair value for each service-based stock option award as of the date of grant using the Black-Scholes option pricing model. The Black-Scholes option pricing model considers, among other factors, the expected life of the award and the expected volatility of the Company’s stock price. The Company recognizes the stock-based compensation expense over the requisite service period using the straight-line method for service condition only stock option awards.
Compensation expense for restricted stock units (“RSUs”) that will be equity-settled is based on the market price of the shares underlying the awards on the grant date. The Company recognizes the stock-based compensation expense for these RSUs over the requisite service period.
RSUs that are expected to be settled in cash are accounted for as liability-classified awards. Changes in the fair value of these awards are recorded on a quarterly basis through their final vesting. Compensation expense is recognized over the requisite service period of the award, with recognition of a corresponding liability recorded in other current liabilities in the accompanying consolidated balance sheets. Changes in fair value are recognized in stock-based compensation expense.
Performance-Based Awards
The Company has granted performance stock units (“PSUs”) with a service-based condition and market-based condition. PSUs with both service-based and market-based conditions vest based on the performance over the requisite service period.
The Company has granted performance-based stock options (“PSOs”) with market-based conditions. The number of PSOs that vest depends on the attainment of certain performance measures. The Company recognizes compensation expense on the PSOs over the period between the grant date and the estimated vest date.
The fair value for each PSU and PSO award with market-based conditions as of the grant date is estimated using the Monte-Carlo simulation method. The Monte-Carlo simulation method considers, among other factors, the discount rate and future market conditions.
Employee Stock Purchase Plan (“ESPP”)
The Company has adopted an ESPP and the plan is considered compensatory. Eligible employees of the Company who elect to participate are granted an option to purchase common stock under the ESPP at 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. The Company estimates the fair value using the Black-Scholes model as of the commencement date of the offering period and recognizes stock-based compensation on a straight-line basis over the offering period.
v3.26.1
Cash, Cash Equivalents and Marketable Securities
 12 Months Ended
Dec. 31, 2025
Cash and Cash Equivalents [Abstract]  
Cash, Cash Equivalents and Marketable Securities Cash, Cash Equivalents and Marketable Securities
The amortized cost, unrealized gain and estimated fair value of the Company’s cash, cash equivalents and marketable securities are as follows:
December 31, 2025
Amortized Cost
Gross Unrealized Gain
Fair Value
(In thousands)
Cash and cash equivalents:
Cash and restricted cash$7,687 $— $7,687 
Money market168,028 — 168,028 
Marketable securities:
U.S. treasuries9,884 14 9,898 
Corporate bonds152,372 43 152,415 
$337,971 $57 $338,028 
December 31, 2024
Amortized Cost
Gross Unrealized Gain
Fair Value
(In thousands)
Cash and cash equivalents:
Cash and restricted cash$8,232 $— $8,232 
Money market202,653 — 202,653 
Marketable securities:
U.S. treasuries34,694 37 34,731 
Corporate bonds410,998 172 411,170 
$656,577 $209 $656,786 
Interest receivable of $2.0 million and $4.2 million is included in other current assets in the accompanying consolidated balance sheets as of December 31, 2025 and 2024, respectively.
The Company recognizes amortization and accretion of purchase premiums and discounts on its marketable securities in interest income in the accompanying consolidated statements of operations and comprehensive loss. The Company recognized $6.1 million and $16.6 million in accretion income, net for its marketable securities for the years ended December 31, 2025 and 2024, respectively.
v3.26.1
Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Property, Plant and Equipment
Property, plant and equipment consists of the following:
December 31,
20252024
(In thousands)
Land$1,302 $1,302 
Buildings10,111 10,111 
Flight vehicles and rotables4,331 4,331 
Machinery and equipment44,913 42,792 
Information technology software and equipment52,130 45,553 
Leasehold improvements77,853 77,589 
Construction in progress302,726 117,810 
493,366 299,488 
Less: accumulated depreciation and amortization
104,63690,374
$388,730 $209,114 
v3.26.1
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
The Company leases offices and other facilities and certain manufacturing and office equipment under long-term, non-cancelable operating and finance leases.
The components of expense related to leases are as follows:
Year Ended December 31,
20252024
(In thousands)
Operating lease cost$13,173 $13,496 
Variable lease cost2,654 3,842 
Short-term lease cost— 22 
Finance lease cost:
Amortization of assets under finance leases
221 223 
Interest on finance lease liabilities60 68 
Total finance lease cost281 291 
Total lease cost$16,108 $17,651 
The components of supplemental cash flow information related to leases are as follows:
Year Ended December 31,
20252024
 (In thousands, except term and rate data)
Cash Flow Information:
Operating cash flows for operating leases$13,719 $13,215 
Operating cash flows for finance leases$60 $68 
Financing cash flows for finance leases
$211 $193 
Non-cash Activity:
Assets acquired in exchange for lease obligations:
Operating leases$3,247 $5,408 
Finance leases$101 $51 
Adjustment to operating lease right-of-use assets from lease modification$(18,900)$— 
Other Information:
Weighted-average remaining lease term:
Operating leases (in years)6.98.7
Finance leases (in years)2.12.6
Weighted-average discount rates:
Operating leases12.4 %12.2 %
Finance leases13.8 %13.3 %
The supplemental balance sheet information related to leases is as follows:
December 31,
20252024
(In thousands)
Operating Leases:
Long-term right-of-use assets$36,882 $58,039 
Short-term operating lease liabilities$8,475 $5,604 
Long-term operating lease liabilities42,279 67,394 
Total operating lease liabilities$50,754 $72,998 
ROU assets are included in other non-current assets, and lease liabilities are included in other current liabilities and other long-term liabilities in the accompanying consolidated balance sheets.
Leases Leases
The Company leases offices and other facilities and certain manufacturing and office equipment under long-term, non-cancelable operating and finance leases.
The components of expense related to leases are as follows:
Year Ended December 31,
20252024
(In thousands)
Operating lease cost$13,173 $13,496 
Variable lease cost2,654 3,842 
Short-term lease cost— 22 
Finance lease cost:
Amortization of assets under finance leases
221 223 
Interest on finance lease liabilities60 68 
Total finance lease cost281 291 
Total lease cost$16,108 $17,651 
The components of supplemental cash flow information related to leases are as follows:
Year Ended December 31,
20252024
 (In thousands, except term and rate data)
Cash Flow Information:
Operating cash flows for operating leases$13,719 $13,215 
Operating cash flows for finance leases$60 $68 
Financing cash flows for finance leases
$211 $193 
Non-cash Activity:
Assets acquired in exchange for lease obligations:
Operating leases$3,247 $5,408 
Finance leases$101 $51 
Adjustment to operating lease right-of-use assets from lease modification$(18,900)$— 
Other Information:
Weighted-average remaining lease term:
Operating leases (in years)6.98.7
Finance leases (in years)2.12.6
Weighted-average discount rates:
Operating leases12.4 %12.2 %
Finance leases13.8 %13.3 %
The supplemental balance sheet information related to leases is as follows:
December 31,
20252024
(In thousands)
Operating Leases:
Long-term right-of-use assets$36,882 $58,039 
Short-term operating lease liabilities$8,475 $5,604 
Long-term operating lease liabilities42,279 67,394 
Total operating lease liabilities$50,754 $72,998 
ROU assets are included in other non-current assets, and lease liabilities are included in other current liabilities and other long-term liabilities in the accompanying consolidated balance sheets.
v3.26.1
Other Current Liabilities
 12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Other Current Liabilities Other Current Liabilities
The components of other current liabilities are as follows:
December 31,
20252024
(In thousands)
Accrued compensation$31,951 $30,705 
Accrued manufacturing sub-contractor and contract labor costs9,601 18,827 
Other26,243 12,289 
$67,795 $61,821 
v3.26.1
2025 Capital Realignment Transactions
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
2025 Capital Realignment Transactions 2025 Capital Realignment Transactions
In December 2025, the Company completed privately negotiated repurchase agreements (the “2027 Notes Repurchase Agreements”) with a limited number of holders of its 2.50% 2027 Notes, pursuant to which the Company repurchased $354.6 million in aggregate principal amount of its 2027 Notes (the “Repurchases”) with cash proceeds received from the Registered Offering (as defined below) and the Private Placement (as defined below).
Concurrently with the Repurchases, the Company completed the issuance and sale for cash in a registered direct offering, pursuant to separate, privately negotiated subscription agreements with certain investors, of (i) 2.2 million shares of its common stock, and (ii) pre-funded warrants (the “Pre-Funded Warrants”) to purchase 8.4 million shares of its common stock (collectively, the “Registered Offering”). In connection with the Registered Offering, the Company received cash proceeds of $45.6 million.
The Pre-Funded Warrants are exercisable at any time on or after December 29, 2025 at an exercise price of $0.0001 per share. The Pre-Funded Warrants contain a cashless exercise feature that allows the holders to exercise the Pre-Funded Warrants without a cash payment to the Company upon the terms set forth therein. The number of shares of common stock for which the Pre-Funded Warrants are exercisable are subject to certain additional customary adjustments as set forth in the Pre-Funded Warrants. As of December 31, 2025, 4.3 million shares of common stock had been issued in connection with the exercise of the Pre-Funded Warrants. All Pre-Funded Warrants had been exercised by January 29, 2026.
Concurrently with the Registered Offering, the Company issued and sold for cash, in a private placement, (i) $212.5 million aggregate principal amount of a new series of its 9.80% First Lien Notes due 2028 (the “2028 Notes”) and (ii) warrants, with a fair value of $62.5 million, to purchase 31.7 million shares of its common stock (the “Purchase Warrants”), with an exercise price equal to $6.696 per share (collectively, the “Private Placement”, and together with the Repurchases and Registered Offering, the “Capital Transactions”). The Purchase Warrants are exercisable at any time on or after June 18, 2026 until December 18, 2030. The Purchase Warrants are exercisable only
for cash and are subject to appropriate adjustment in the event of cash or share dividends, share splits, share repurchases, reorganizations or similar events affecting the Company’s common stock.
The Company performed an assessment of the Capital Transactions and determined that it should be accounted for as a troubled debt restructuring under ASC 470-60. Accordingly, the Company did not recognize any gain on the Capital Transactions as the undiscounted future cash flows associated with the 2028 Notes exceeded the carrying amount of the repurchased 2027 Notes after adjusting the carrying value of the repurchased 2027 Notes by the fair value of common stock and warrants, aggregating $96.4 million, issued in connection with the Registered Offering and Private Placement. As a result, the difference between the principal amount of the 2028 Notes and the adjusted carrying value of the repurchased 2027 Notes was recorded as a premium and is included in long-term debt on the Company’s consolidated balance sheet as of December 31, 2025. The premium recorded on the 2028 Notes was $45.7 million and will be reduced as contractual interest payments are made.
As a result of the Repurchases, the outstanding principal amount of the 2027 Notes was reduced from $425.0 million to $70.4 million.
The Purchase Warrants were valued using the Black-Scholes option pricing model using the following assumptions:
Stock price
$3.21 
Expected life
5 years
Expected volatility
93.0 %
Risk free interest rate
3.6 %
Dividend yield
— %
Stockholders’ Equity
The total number of shares of all classes of capital stock which the Company has authority to issue is 710,000,000 of which 700,000,000 are common stock, par value $0.0001 per share, and 10,000,000 are preferred stock, par value $0.0001 per share. No preferred stock was outstanding for either year presented.
At-The-Market Offerings
In June 2023, the Company entered into a distribution agency agreement with Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC (each, an “Agent” and collectively, the “Agents”) providing for the offer and sale of up to $400 million of shares of the Company’s common stock from time to time through the Agents, acting as sales agents, or directly to one or more of the Agents, acting as principal(s), through an “at-the-market offering” program (the “2023 ATM Program”).
In November 2024, the Company terminated the 2023 ATM Program, having sold a total of 12.8 million shares of common stock and generating $396.2 million in gross proceeds, before deducting $3.9 million in underwriting discounts, commissions and other expenses.
In November 2024, the Company entered into an open market sale agreement with Jefferies LLC (“Jefferies”) providing for the offer and sale of up to $300 million of shares of the Company’s common stock from time to time through Jefferies, acting as sales agent, or directly to Jefferies, acting as principal, through an “at-the-market offering” program (the “2024 ATM Program”).
During the year ended December 31, 2025, the Company sold 33.5 million shares of common stock under the 2024 ATM Program and generated $121.6 million in gross proceeds, before deducting $3.5 million in underwriting discounts, commissions and other expenses.
As of December 31, 2025, the Company had sold a total of 37.6 million shares of common stock under the 2024 ATM Program, generating $150.7 million in gross proceeds since its inception, before deducting $4.4 million in underwriting discounts, commissions and other expenses.
Stockholders’ Agreement
In connection with the closing of the Virgin Galactic business combination in October 2019, the Company entered into a stockholders’ agreement (the “Stockholder’ Agreement”) with certain of the Company’s investors. Pursuant to the terms of the Stockholders’ Agreement, as long as Virgin Investments Limited (“VIL”) is entitled to designate two directors to the Company’s board of directors, the Company must obtain VIL’s prior written consent to engage in certain corporate transactions and management functions such as business combinations, disposals, acquisitions, incurring indebtedness, and engagement of professional advisors, among others.
v3.26.1
Long-Term Debt
 12 Months Ended
Dec. 31, 2025
Convertible Debt [Abstract]  
Long-Term Debt Long-Term Debt
A summary of the components of long-term debt is as follows:
December 31,
20252024
( In thousands)
2028 Notes$212,496 $— 
2027 Notes70,421 425,000 
Total contractual debt outstanding
282,917 425,000 
Unamortized debt premium
45,691 — 
Unamortized debt issuance costs
(4,416)(4,880)
Long-term debt
324,192 420,120 
Less: current portion of long-term debt47,830 — 
Non-current portion of long-term debt
$276,362 $420,120 
2028 Notes
In connection with the Private Placement, the Company issued $212.5 million aggregate principal amount of the 2028 Notes. The 2028 Notes were issued at a price of 100% of their face value and bear interest at a rate of 9.80% per year, payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, beginning in March 2026. The 2028 Notes mature on December 31, 2028, unless earlier redeemed or repurchased.
The Company is required to redeem $30.4 million of the 2028 Notes on or before September 30, 2026, and beginning on December 31, 2027 and at every calendar quarter end thereafter, the Company is required to redeem $10.1 million of the outstanding 2028 Notes. In addition, the Company is required to repurchase a portion of the 2028 Notes upon certain asset sales and capital raises. The Company may also redeem any or all of the 2028 Notes at par plus accrued and unpaid interest at any time. Any such mandatory or optional redemptions may be made using cash, or subject to certain conditions, shares of common stock or a combination thereof.
The 2028 Notes are secured on a first-priority basis by liens on substantially all of the assets of the Company and its domestic subsidiaries, subject to customary exceptions, including customer deposits, pursuant to a security agreement and related collateral documents.
The Company is not subject to financial maintenance covenants under the 2028 Notes indenture but is subject to certain customary covenants, including but not limited to, limitations on debt, liens, restricted payments, investments, asset sales, affiliate transactions, liability management exercise protections, change of control transactions and other market-standard terms, all subject to materiality thresholds, carve-outs and exceptions. The 2028 Notes indenture also includes a limitation on cash repayment of the 2027 Notes until the mandatory redemption described above has been completed.
The following table presents the scheduled contractual interest payments for the 2028 Notes as of December 31, 2025. These contractual interest payments are allocated to the reduction of the recorded premium and interest expense as presented below. The amount of interest which reduces the recorded premium will be reported as a financing activity the Company’s consolidated statements of cash flows.
202620272028
Total
(In thousands)
Interest payments recorded as:
Reduction of recorded premium
$17,438 $15,099 $13,154 $45,691 
Interest expense
3,394 2,747 2,210 8,351 
Total interest payments
$20,832 $17,846 $15,364 $54,042 
2027 Notes
In January 2022, the Company completed an offering of $425 million aggregate principal amount of the 2027 Notes. The 2027 Notes are senior, unsecured obligations of the Company, and bear interest at a fixed rate of 2.50% per year. Interest is payable in cash semi-annually in arrears on February 1 and August 1 of each year. The 2027 Notes mature on February 1, 2027 unless earlier repurchased, redeemed or converted.
The terms of the 2027 Notes are governed by an Indenture by and between the Company and U.S. Bank National Association, as Trustee (the “2027 Indenture”). Upon conversion by the noteholders, the 2027 Notes may be settled in cash, shares of the Company’s common stock or a combination of cash and shares of common stock, at the Company’s election, based on the conversion rate.
The 2027 Notes are convertible at an initial conversion rate of 3.9098 shares of common stock per $1,000 principal amount of the 2027 Notes, which is equal to an initial conversion price of approximately $255.77 per share of common stock, subject to adjustment upon the occurrence of certain events. Noteholders will have the right to convert their notes during any calendar quarter (and only during such calendar quarter) under the following circumstances:
•during any calendar quarter (and only during such calendar quarter) if the last reported sale price of the Company’s common stock for each of at least 20 trading days in a period of 30 consecutive trading days ending on and including the last trading day of the preceding calendar quarter is more than 130% of the then applicable conversion price for the Notes per share of common stock;
•during the five consecutive business days immediately after any ten consecutive trading day period in which the trading price per $1,000 principal amount of 2027 Notes for each day of that period was less than 98% of the product of the last reported sale price of the Company’s common stock and the then applicable conversion rate;
•the Company calls any or all of the 2027 Notes for redemption, holders may convert all or any portion of their notes at any time prior to the close of business on the scheduled trading day prior to the redemption date, even if the 2027 Notes are not otherwise convertible at such time; or
•specified distributions to holders of the Company’s common stock are made or specified corporate events occur, as described in the 2027 Indenture.
On and after November 1, 2026, noteholders will have the right to convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. The Company will have the right to elect to settle conversions in cash, in shares of its common stock or in a combination of cash and shares of its common stock. During the years ended December 31, 2025 and 2024, the conditions allowing holders of the 2027 Notes to convert were not met, and as a result, the 2027 Notes were classified as non-current liabilities as of December 31, 2025 and 2024.
The 2027 Notes will be redeemable, in whole or in part (subject to certain limitations), for cash at the Company’s option at any time, and from time to time, on or after February 6, 2025 and on or before the 20th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for a specified period of time and certain liquidity conditions have been satisfied. The redemption price will be equal to the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.
Holders of the 2027 Notes who convert their 2027 Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the 2027 Indenture) or in connection with the Company’s issuance of a redemption notice are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a corporate event that constitutes a fundamental change (as defined in the 2027 Indenture), holders of the 2027 Notes may require the Company to repurchase all or a portion of their 2027 Notes at a price equal to the principal amount of the 2027 Notes being repurchased, plus any accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date.
Debt Maturities and Mandatory Payments
Maturities and mandatory payments of the contractual debt outstanding as of December 31, 2025 are as follows:
Year ending December 31,
(In thousands)
2026$30,392 
202780,552 
2028171,973 
$282,917 
Capped Call Transactions
In connection with the issuance of the 2027 Notes, the Company entered into capped call transactions with respect to its common stock. The 2027 Capped Calls are purchased call options that give the Company the option to purchase, subject to anti-dilution adjustments substantially identical to those in the 2027 Notes, approximately 1.7 million shares of its common stock for approximately $255.77 per share (subject to adjustment), corresponding to the approximate initial conversion price of the 2027 Notes, exercisable upon conversion of the 2027 Notes. The 2027 Capped Calls have initial cap prices of $401.20 per share (subject to adjustment), which represents a premium of 100% over the closing price of the Company’s common stock on January 13, 2022, and will expire in 2027, if not exercised earlier.
The 2027 Capped Calls are intended to reduce potential dilution to the Company’s common stock upon any conversion of the 2027 Notes and/or offset the potential cash payments that the Company could be required to make in excess of the principal amount upon any conversion of the 2027 Notes, as the case may be, with such reduction and/or offset subject to a cap, based on the cap price of the 2027 Capped Call transactions. The 2027 Capped Calls are separate transactions, each between the Company and the applicable option counterparty, and are not part of the terms of the 2027 Notes and will not affect any holders’ rights under the 2027 Notes or the 2027 Indenture. Holders of the 2027 Notes will not have any rights with respect to the 2027 Capped Call transactions.
v3.26.1
Stockholders' Equity
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Stockholders' Equity 2025 Capital Realignment Transactions
In December 2025, the Company completed privately negotiated repurchase agreements (the “2027 Notes Repurchase Agreements”) with a limited number of holders of its 2.50% 2027 Notes, pursuant to which the Company repurchased $354.6 million in aggregate principal amount of its 2027 Notes (the “Repurchases”) with cash proceeds received from the Registered Offering (as defined below) and the Private Placement (as defined below).
Concurrently with the Repurchases, the Company completed the issuance and sale for cash in a registered direct offering, pursuant to separate, privately negotiated subscription agreements with certain investors, of (i) 2.2 million shares of its common stock, and (ii) pre-funded warrants (the “Pre-Funded Warrants”) to purchase 8.4 million shares of its common stock (collectively, the “Registered Offering”). In connection with the Registered Offering, the Company received cash proceeds of $45.6 million.
The Pre-Funded Warrants are exercisable at any time on or after December 29, 2025 at an exercise price of $0.0001 per share. The Pre-Funded Warrants contain a cashless exercise feature that allows the holders to exercise the Pre-Funded Warrants without a cash payment to the Company upon the terms set forth therein. The number of shares of common stock for which the Pre-Funded Warrants are exercisable are subject to certain additional customary adjustments as set forth in the Pre-Funded Warrants. As of December 31, 2025, 4.3 million shares of common stock had been issued in connection with the exercise of the Pre-Funded Warrants. All Pre-Funded Warrants had been exercised by January 29, 2026.
Concurrently with the Registered Offering, the Company issued and sold for cash, in a private placement, (i) $212.5 million aggregate principal amount of a new series of its 9.80% First Lien Notes due 2028 (the “2028 Notes”) and (ii) warrants, with a fair value of $62.5 million, to purchase 31.7 million shares of its common stock (the “Purchase Warrants”), with an exercise price equal to $6.696 per share (collectively, the “Private Placement”, and together with the Repurchases and Registered Offering, the “Capital Transactions”). The Purchase Warrants are exercisable at any time on or after June 18, 2026 until December 18, 2030. The Purchase Warrants are exercisable only
for cash and are subject to appropriate adjustment in the event of cash or share dividends, share splits, share repurchases, reorganizations or similar events affecting the Company’s common stock.
The Company performed an assessment of the Capital Transactions and determined that it should be accounted for as a troubled debt restructuring under ASC 470-60. Accordingly, the Company did not recognize any gain on the Capital Transactions as the undiscounted future cash flows associated with the 2028 Notes exceeded the carrying amount of the repurchased 2027 Notes after adjusting the carrying value of the repurchased 2027 Notes by the fair value of common stock and warrants, aggregating $96.4 million, issued in connection with the Registered Offering and Private Placement. As a result, the difference between the principal amount of the 2028 Notes and the adjusted carrying value of the repurchased 2027 Notes was recorded as a premium and is included in long-term debt on the Company’s consolidated balance sheet as of December 31, 2025. The premium recorded on the 2028 Notes was $45.7 million and will be reduced as contractual interest payments are made.
As a result of the Repurchases, the outstanding principal amount of the 2027 Notes was reduced from $425.0 million to $70.4 million.
The Purchase Warrants were valued using the Black-Scholes option pricing model using the following assumptions:
Stock price
$3.21 
Expected life
5 years
Expected volatility
93.0 %
Risk free interest rate
3.6 %
Dividend yield
— %
Stockholders’ Equity
The total number of shares of all classes of capital stock which the Company has authority to issue is 710,000,000 of which 700,000,000 are common stock, par value $0.0001 per share, and 10,000,000 are preferred stock, par value $0.0001 per share. No preferred stock was outstanding for either year presented.
At-The-Market Offerings
In June 2023, the Company entered into a distribution agency agreement with Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC (each, an “Agent” and collectively, the “Agents”) providing for the offer and sale of up to $400 million of shares of the Company’s common stock from time to time through the Agents, acting as sales agents, or directly to one or more of the Agents, acting as principal(s), through an “at-the-market offering” program (the “2023 ATM Program”).
In November 2024, the Company terminated the 2023 ATM Program, having sold a total of 12.8 million shares of common stock and generating $396.2 million in gross proceeds, before deducting $3.9 million in underwriting discounts, commissions and other expenses.
In November 2024, the Company entered into an open market sale agreement with Jefferies LLC (“Jefferies”) providing for the offer and sale of up to $300 million of shares of the Company’s common stock from time to time through Jefferies, acting as sales agent, or directly to Jefferies, acting as principal, through an “at-the-market offering” program (the “2024 ATM Program”).
During the year ended December 31, 2025, the Company sold 33.5 million shares of common stock under the 2024 ATM Program and generated $121.6 million in gross proceeds, before deducting $3.5 million in underwriting discounts, commissions and other expenses.
As of December 31, 2025, the Company had sold a total of 37.6 million shares of common stock under the 2024 ATM Program, generating $150.7 million in gross proceeds since its inception, before deducting $4.4 million in underwriting discounts, commissions and other expenses.
Stockholders’ Agreement
In connection with the closing of the Virgin Galactic business combination in October 2019, the Company entered into a stockholders’ agreement (the “Stockholder’ Agreement”) with certain of the Company’s investors. Pursuant to the terms of the Stockholders’ Agreement, as long as Virgin Investments Limited (“VIL”) is entitled to designate two directors to the Company’s board of directors, the Company must obtain VIL’s prior written consent to engage in certain corporate transactions and management functions such as business combinations, disposals, acquisitions, incurring indebtedness, and engagement of professional advisors, among others.
v3.26.1
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Equity Incentive Plans
The Company maintains two equity incentive plans -- the Third Amended and Restated Virgin Galactic Holdings, Inc. 2019 Incentive Award Plan (the “Third A&R Plan”) and the Second Amended and Restated Virgin Galactic Holdings, Inc. 2023 Employment Inducement Incentive Award Plan (the “Second A&R Inducement Plan”).
The Third A&R Plan was adopted by the Company’s board of directors in April 2025, subject to the approval of the Company’s stockholders, and became effective upon the approval of the Company’s stockholders in June 2025. The Third A&R Plan amended and restated the Second Amended and Restated Virgin Galactic Holdings, Inc. 2019 Incentive Plan (the “Second A&R Plan”) and made the following material changes to the Second A&R Plan: (i) increased the number of shares available by 5.5 million shares to an aggregate of 7,670,437 shares reserved for issuance under the Third A&R Plan, (ii) increased the number of shares which may be granted as incentive stock options (“ISOs”) under the Third A&R Plan, such that an aggregate of 7,670,437 shares may be granted as ISOs under the Third A&R Plan, and (iii) extended the right to grant awards under the Third A&R Plan through June 5, 2035, provided that ISOs may not be granted under the Third A&R Plan after April 10, 2035.
The Second A&R Inducement Plan was adopted by the Company’s board of directors and became effective in March 2026. The Second A&R Inducement Plan increased the number of shares available by 555,000 shares to an aggregate of 1,695,000 shares reserved for issuance under the Second A&R Inducement Plan.
Pursuant to the Third A&R Plan and related predecessor plans, the Company has granted equity incentive awards, including time-based stock options, performance-based stock options (“PSOs”), restricted stock units (“RSUs”), and performance stock units (“PSUs”). Pursuant to the Second A&R Inducement Plan, and its predecessor plan, the Company has granted RSUs.
Common Stock Reserved for Future Issuance
As of December 31, 2025, 2.5 million shares remained available for issuance under the Third A&R Plan and the Inducement Plan.
Time-Based Stock Options
Stock options (other than PSOs) typically vest over four years, with 25% cliff vest at the grant date first anniversary and ratably over the next three years, subject to continued employment on the applicable vesting date. Vested options will be exercisable at any time until ten years from the grant date, subject to earlier expiration under certain terminations of service and other conditions. The stock options granted have an exercise price equal to the closing stock price of the Company’s common stock on the grant date.
A summary of activity for time-based stock options is as follows:
Number of SharesWeighted- Average Exercise PriceWeighted- Average Remaining Contractual Life (in years)Aggregate Intrinsic Value
Outstanding at December 31, 2023145,649 $280.60 6.0$— 
Granted— — 
Exercised— — 
Forfeited(19,104)235.80 
Outstanding at December 31, 2024126,545 287.43 5.2— 
Granted— — 
Exercised— — 
Forfeited(6,511)239.21 
Outstanding at December 31, 2025120,034 $290.05 4.2$— 
Exercisable at December 31, 2025119,403 $290.74 4.2$— 
The aggregate intrinsic value is calculated based on the difference between the Company’s closing stock price at year end and the exercise price, multiplied by the number of in-the-money options and represents the pre-tax amount that would have been received by the option holders, had they all exercised all their options on the fiscal year end date.
Performance-Based Stock Options
Compensation expense on PSOs is recognized over the period between the grant date and the estimated vest date. The number of PSOs that will vest depends on the attainment of certain stock price goals. Vested options will be exercisable at any time until ten years from the grant date, subject to earlier expiration under certain terminations of service and other conditions. The stock options granted have an exercise price equal to the closing stock price of the Company’s common stock on the grant date.
A summary of activity for PSOs is as follows:
Number of SharesWeighted- Average Exercise PriceWeighted- Average Remaining Contractual Life (in years)Aggregate Intrinsic Value
Outstanding at December 31, 202320,284 $179.80 8.2$— 
Granted— — 
Exercised— — 
Forfeited— — 
Outstanding at December 31, 202420,284 179.80 7.2— 
Granted— — 
Exercised— — 
Forfeited— — 
Outstanding at December 31, 202520,284 $179.80 6.2$— 
Exercisable at December 31, 2025— $— 0.0$— 
The aggregate intrinsic value is calculated based on the difference between the Company’s closing stock price at year end and the exercise price, multiplied by the number of in-the-money options and represents the pre-tax amount that would have been received by the option holders, had they all exercised all their options on the fiscal year end date.
Restricted Stock Units -- Equity-Classified
RSUs typically vest over three to four years commencing on the first-year anniversary of the grant date and ratably over the remaining vesting period. The fair value of the Company’s RSUs is based on the closing stock price on the date of grant.
A summary of activity for equity-classified RSUs is as follows:
SharesWeighted-Average Grant Date Fair Value
Outstanding at December 31, 2023319,627 $146.60 
Granted578,075 21.27 
Vested(152,019)179.55 
Forfeited(103,182)56.71 
Outstanding at December 31, 2024642,501 40.96 
Granted5,180,567 3.15 
Vested(253,542)51.18 
Forfeited(325,153)9.24 
Outstanding at December 31, 20255,244,373 $4.99 
Restricted Stock Units -- Liability-Classified
During the year ended December 31, 2024, the Company granted RSUs that are expected to be settled in cash. The liability-classified RSUs vest annually in equal installments over two years.
A summary of activity for liability-classified RSUs is as follows:
Shares
Outstanding at December 31, 2023
— 
Granted272,626 
Vested— 
Forfeited— 
Outstanding at December 31, 2024
272,626 
Granted— 
Vested(136,312)
Forfeited— 
Outstanding at December 31, 2025136,314 
Performance Stock Units
Between 25% and 200% of outstanding PSUs are eligible to vest based on the achievement of certain market-based conditions by specified target dates, subject to continued service through the applicable vesting dates. PSUs with market-based conditions vest based on the Company’s common stock performance following the end of the three-year performance measurement period, based on the highest closing price over twenty consecutive trading days during that period. PSUs with market-based conditions cannot vest before the end of the performance measurement period, thus the requisite service period is three years. All PSUs outstanding as of December 31, 2025 and 2024 vest based on market-based conditions following the end of the three-year performance measurement period.
A summary of activity for PSUs is as follows:
SharesWeighted-Average Grant Date Fair Value
Outstanding at December 31, 202349,176 $208.40 
Granted— — 
Vested— — 
Forfeited— — 
Outstanding at December 31, 202449,176 208.40 
Granted— — 
Vested— — 
Forfeited(20,506)279.98 
Outstanding at December 31, 202528,670 $157.20 
Employee Stock Purchase Plan
The Virgin Galactic Holdings, Inc. 2025 Employee Stock Purchase Plan (the “ESPP”) was adopted by the Company’s board of directors in April 2025, subject to the approval of the Company’s stockholders, and became effective upon the approval of the Company’s stockholders in June 2025. The aggregate number of shares of common stock authorized for issuance under the ESPP is 2.5 million. The ESPP is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423(b) of the Internal Revenue Code. Under the ESPP, eligible employees of the Company and its designated subsidiaries who elect to participate are granted an option to purchase common stock at 85% of the lower of the fair market value of the common stock on either the first day of the six-month offering period or on the applicable purchase date, unless otherwise determined by the plan administrator. The ESPP permits participating employees to make contributions to purchase shares of common stock, in an amount between 1% and 15% of eligible compensation (unless otherwise determined by the plan administrator), subject to limits specified in the plan document and the Internal Revenue Code.
The initial six-month offering period of the ESPP commenced on July 1, 2025 and on December 31, 2025, 0.2 million shares were purchased under the ESPP at $2.40 per share, resulting in cash proceeds of $0.5 million. As of December 31, 2025, 2.3 million shares remained available for issuance under the ESPP.
Stock-Based Compensation
A summary of stock-based compensation expense resulting from stock options, RSUs, PSUs, and the ESPP purchase rights included in the consolidated statements of operations and comprehensive loss is as follows:
Year Ended December 31,
20252024
(In thousands)
Spaceline operations$2,191 $4,023 
Research and development1,926 3,817 
Selling, general and administrative14,581 21,912 
Total stock-based compensation expense18,698 29,752 
Less: stock-based compensation expense for liability-classified awards
267 643 
Stock-based compensation expense for equity-classified awards
$18,431 $29,109 
As of December 31, 2025, the Company had unrecognized stock-based compensation expense of $0.1 million for stock options, which is expected to be recognized over a weighted-average period of 0.3 years. There was no unrecognized stock-based compensation expense for PSOs. Unrecognized stock-based compensation expense as of December 31, 2025 for RSUs and PSUs totaled $20.6 million and $0.3 million, respectively, which are expected to be recognized over a weighted-average period of 1.9 years and 0.3 years, respectively.
v3.26.1
Employee Benefit Plan
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Benefit Plan Employee Benefit Plan
The Company has a defined contribution plan, under which the Company makes contributions to the plan based upon a percentage of the employees’ elected contributions. Obligations for Company contributions to the defined contribution plan is recognized in the consolidated statements of operations and comprehensive loss, as incurred. During the years ended December 31, 2025 and 2024, the Company incurred contribution expenses of $5.6 million and $6.3 million, respectively.
v3.26.1
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Loss before income taxes consists of the following components:
Year Ended December 31,
20252024
(In thousands)
United States$(278,971)$(346,826)
International116 160 
Loss before income taxes$(278,855)$(346,666)
The components of income tax expense are as follows:
CurrentDeferredTotal
(In thousands)
Year ended December 31, 2025
Federal$— $— $— 
State7 — 7 
Foreign105 (60)45 
$112 $(60)$52 
Year ended December 31, 2024
Federal$— $— $— 
State10 — 10 
Foreign132 (68)64 
$142 $(68)$74 
On July 4, 2025, the One Big Beautiful Bill Act was signed into law. The legislation did not have a material impact on the Company's income tax expense for the year ended December 31, 2025, nor did it materially change the Company's effective income tax rate for 2025.
Significant items comprising the Company’s deferred taxes are as follows:
December 31,
20252024
(In thousands)
Deferred tax assets:
Net operating losses$510,732 $447,735 
Research and development credits125,149 82,432 
Capitalized research and experimental expenditures96,515 129,951 
Goodwill170,556 189,132 
Book/tax basis difference in debt25,578 — 
Other31,398 37,488 
Total gross deferred tax assets959,928 886,738 
Valuation allowance(950,241)(870,427)
Net deferred tax assets9,687 16,311 
Deferred tax liabilities:
Operating lease right-of-use assets
(9,562)(14,986)
Other
(115)(1,375)
Total gross deferred tax liabilities(9,677)(16,361)
Net deferred tax assets (liabilities)
$10 $(50)
Based on the Company’s earnings history and available objectively verifiable positive and negative evidence, the Company determined that it is more likely than not that a substantial portion of its deferred tax assets will not be realized in the future. As of December 31, 2025 and 2024, the Company recorded a valuation allowance of $950.2 million and $870.4 million, respectively, against its deferred tax assets that were determined to not be more likely than not realizable.
A reconciliation of income tax expense with the amount computed by applying the federal statutory tax rate to loss before income taxes is as follows:
Year Ended December 31,
20252024
(In thousands, except percentages)
U.S. federal statutory rate$(58,560)21.0 %$(72,800)21.0 %
Research and development tax credits(10,607)3.8 %(14,558)4.2 %
Change in valuation allowance64,027 (23.0)%80,104 (23.1)%
Other, net5,192 (1.9)%7,328 (2.1)%
$52 — %$74 — %
Cash paid for income taxes, net of refunds, was $0.3 million for foreign jurisdictions for the year ended December 31, 2024 and was not material for any other jurisdictions for the years ended December 31, 2025 and 2024.
As of December 31, 2025, the Company had approximately $2.0 billion and $1.9 billion of federal and state net operating loss (“NOL”) carryforwards, respectively. All NOLs incurred during the year ended December 31, 2019 and thereafter are carried forward indefinitely for federal tax purposes. California has not conformed to the indefinite carry forward period for NOLs. The NOLs begin expiring in the calendar year 2039 for state purposes.
In the ordinary course of its business, the Company incurs costs that, for tax purposes, are determined to be qualified research expenditures within the meaning of Internal Revenue Code (“IRC”) Section 41 and are, therefore, eligible for the increasing research activities credit under IRC Section 41. The research and development (“R&D”) tax credit carryforward as of December 31, 2025 is $87.5 million and $42.0 million for federal and state purposes, respectively. The R&D tax credit carryforwards begin expiring in the calendar year 2039 for federal purposes. R&D credits generated for California purposes are carried forward indefinitely.
Under Section 382 of the IRC, the Company’s ability to utilize NOL carryforwards or other tax attributes such as research tax credits, in any taxable year, may be limited if the Company experiences an “ownership change.” A Section 382 “ownership change” generally occurs if one or more stockholders or groups of stockholders, who own at least 5% of the Company’s stock, increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. Similar rules may apply under state tax laws. The Company may in the future experience one or more Section 382 “ownership changes.” If so, the Company may not be able to utilize a material portion of its NOL carryforwards and tax credits, even if the Company achieves profitability.
The Company recognizes tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. As the Company expands, it will face increased complexity in determining the appropriate tax jurisdictions for revenue and expense items. The Company’s policy is to adjust these reserves when facts and circumstances change, such as the closing of a tax audit or refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the income tax expense in the period in which such determination is made and could have a material impact on the Company’s financial condition and operating results. The income tax expense includes the effects of any accruals that the Company believes are appropriate, as well as the related net interest and penalties.
As of December 31, 2025, the Company has total uncertain tax positions of $24.1 million, which is net of tax. The balance is related to the R&D tax credit, which is recorded as a reduction of the deferred tax asset related credit carryforwards. No interest or penalties have been recorded related to the uncertain tax positions. A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows:
Year Ended December 31,
20252024
(In thousands)
Balance at the beginning of the year$20,607 $16,351 
Additions based on tax positions related to current year3,521 4,256 
Balance at the end of year$24,128 $20,607 
It is not expected that there will be a significant change in uncertain tax position in the next 12 months. The Company is subject to U.S. federal income tax, as well as to income tax in multiple state jurisdictions and one foreign jurisdiction. In the normal course of business, the Company is subject to examination by tax authorities. There are no tax examinations in progress as of December 31, 2025. Due to NOL carryforwards, the U.S. federal and state income tax returns remain subject to examination by the Internal Revenue Service and state jurisdictions for the period from October 26, 2019 through December 31, 2019 and annual periods thereafter. The statute of limitations for the Company’s foreign tax jurisdiction is open for tax years after December 31, 2022.
Effective for tax years beginning after December 31, 2021, research and experimental (“R&E”) expenditures are amortized ratably for tax purposes over a 5-year period (or 15-year period for R&E expenditures attributable to foreign research).
v3.26.1
Earnings Per Share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The following table presents net loss per share and related information:        
Year Ended December 31,
20252024
(In thousands, except per share amounts)
Basic and diluted:
Net loss$(278,907)$(346,740)
Weighted-average common shares outstanding 51,242 24,955 
Basic and diluted net loss per share $(5.44)$(13.89)
Basic and dilutive net loss per share is computed using the weighted-average number of shares of common stock outstanding during the period. The computation of diluted net loss per share excludes the effect of all potential common shares outstanding as their impact would have been anti-dilutive. In December 2025, in connection with the Registered Offering (see Note 8), the Company issued and sold Pre-Funded Warrants exercisable for an aggregate of 8.4 million shares of its common stock at an exercise price of $0.0001 per share. As the Pre-Funded Warrants are issuable for nominal consideration, the shares underlying the unexercised 4.1 million Pre-Funded Warrants were considered outstanding for purposes of the calculation of net loss per share for the year ended December 31, 2025.
A summary of the total number of shares excluded in the diluted net loss per share calculation is as follows:
December 31,
20252024
(In thousands)
Stock options issued and outstanding120 127 
Performance stock options issued and outstanding20 20 
Unvested equity - classified restricted stock units issued and outstanding5,244 643 
Unvested performance stock units issued and outstanding29 49 
Shares related to the 2027 Notes (if-converted)275 1,662 
5,688 2,501 
v3.26.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following tables present the Company’s financial assets that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy:
December 31, 2025
Level 1Level 2Level 3Total
(In thousands)
Assets:
Money market$168,028 $— $— $168,028 
U.S. treasuries9,898 — — 9,898 
Corporate bonds— 152,415 — 152,415 
Total assets at fair value$177,926 $152,415 $— $330,341 
December 31, 2024
Level 1Level 2Level 3Total
(In thousands)
Assets:
Money market$202,653 $— $— $202,653 
U.S. treasuries
34,731 — — 34,731 
Corporate bonds— 411,170 — 411,170 
Total assets at fair value$237,384 $411,170 $— $648,554 
The following tables present the Company’s financial liabilities that are recorded at amortized cost, segregated among the appropriate levels within the fair value hierarchy:
December 31, 2025
Level 1Level 2Level 3Total
(In thousands)
Liabilities:
2028 Notes$— $173,184 $— $173,184 
2027 Notes— 57,592 — 57,592 
Total liabilities at fair value$— $230,776 $— $230,776 
December 31, 2024
Level 1Level 2Level 3Total
(In thousands)
Liabilities:
2027 Notes$— $186,252 $— $186,252 
Total liabilities at fair value$— $186,252 $— $186,252 
The estimated fair values of the 2028 Notes and 2027 Notes, which are classified as Level 2 financial instruments, were determined based on the estimated or actual bid prices of the respective notes in an over-the-counter market on the last business day of the period, if available, or indicative pricing from market information.
v3.26.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Leases
The Company has certain noncancelable operating leases primarily for its premises. These leases generally contain renewal options for periods ranging from 3 to 20 years and require the Company to pay all executory costs, such as maintenance and insurance. Certain lease arrangements have rent free periods or escalating payment provisions, and the Company recognizes rent expense of such arrangements on a straight-line basis.
Future minimum lease payments under noncancelable operating leases and future minimum finance lease payments as of December 31, 2025 are as follows:
Operating LeasesFinance
Leases
(In thousands)
Year ending December 31:
2026$14,191 $230 
202713,951 115 
20289,790 50 
20297,265 15 
20307,152 2 
Thereafter24,799 — 
Total payments77,148412
Less: present value discount/imputed interest26,394 54 
Present value of lease liabilities$50,754 $358 
Legal Proceedings
From time to time, the Company is a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. The Company applies accounting for contingencies to determine when and how much to accrue for and disclose related to legal and other contingencies. Accordingly, the Company discloses contingencies deemed to be reasonably possible and accrues loss contingencies when, in consultation with legal advisors, it is concluded that a loss is probable and reasonably estimable. Although the ultimate aggregate amount of monetary liability or financial impact with respect to these matters is subject to many uncertainties and is therefore not predictable with assurance, management believes that any monetary liability or financial impact to the Company from these matters, individually and in the aggregate, beyond that provided at December 31, 2025, would not be material to the Company’s consolidated financial position, results of operations or cash flows. However, there can be no assurance with respect to such result, and monetary liability or financial impact to the Company from legal proceedings, lawsuits and other claims could differ materially from those projected.
The Boeing Company and Aurora Flight Sciences Corporation v. the Company
On March 21, 2024, The Boeing Company and Aurora Flight Sciences Corporation, a Boeing Company (collectively, “Boeing”), filed suit against the Company in the Eastern District of Virginia, captioned The Boeing Company and Aurora Flight Sciences Corporation, a Boeing Company v. Virgin Galactic Holdings, Inc., Case No. 1:21-cv-03070. In its complaint, Boeing alleges that the Company breached the parties’ Master Agreement. Boeing further alleges trade secret misappropriation under the Delaware Uniform Trade Secrets Act (“DUTSA”), 6 Del C. § 2001, et. seq., and the Defend Trade Secrets Act (“DTSA”), 18 U.S.C. § 1836, et. seq., and filed a motion for preliminary injunction to destroy certain disputed documents. The complaint seeks damages in excess of $25 million, expenses, attorneys’ fees and other equitable relief. On April 12, 2024, the Company filed an answer to Boeing’s complaint and a counterclaim seeking damages relating to Boeing’s breach of the Master Agreement, as well as an opposition to Boeing’s motion for a preliminary injunction.
On April 4, 2024, the Company filed suit against Boeing in the Central District of California. In its complaint, the Company sought: (1) declaratory judgment of no misappropriation of trade secrets under either DUTSA or DTSA by the Company, (2) declaratory judgment of no breach of contract by the Company, and (3) damages related to Boeing’s
breach of contract for failure to adequately perform, including incomplete work on design phases of the project. On April 12, 2024, Boeing filed a motion for an anti-suit injunction in connection with the Company’s California suit. On June 6, 2024, the Company voluntarily dismissed the California action without prejudice, electing to pursue its affirmative claims against Boeing by way of the counterclaim filed in the Virginia action, and on that same day the Company and Boeing jointly informed the Virginia court that the Company’s voluntary dismissal of the California action without prejudice rendered moot Boeing’s motion for an anti-suit injunction.
A hearing on the motion for a preliminary injunction took place on May 24, 2024. On June 20, 2024, the Court denied the preliminary injunction sought by Boeing, and ordered that the Company could use the disputed documents internally, and with third parties under a non-disclosure agreement, for the purpose of developing a new launch vehicle.

On October 2, 2024, Boeing and the Company executed a “Material Terms of Settlement Agreement,” endorsed by Magistrate Judge Lindsey R. Vaala of the United States District Court for the Eastern District of Virginia, by which they agreed to resolve all disputes between them relating to the lawsuits. The parties entered into a final Settlement Agreement effective October 31, 2024, and the litigation was dismissed in its entirety on November 4, 2024. The Company has reflected a benefit associated with this settlement in research and development expense in the accompanying consolidated statement of operations and comprehensive loss for the year ended December 31, 2024.
Lavin v. the Company
On May 28, 2021, a putative class action complaint was filed against the Company in the Eastern District of New York captioned Lavin v. Virgin Galactic Holdings, Inc., Case No. 1:21-cv-03070. In September 2021, the Court appointed Robert Scheele and Mark Kusnier as co-lead plaintiffs for the purported class. Co-lead plaintiffs amended the complaint in December 2021, asserting violations of Sections 10(b), 20(a) and 20A of the Exchange Act of 1934 against the Company and certain of its current and former officers and directors on behalf of a putative class of investors who purchased the Company’s common stock between July 10, 2019 and October 14, 2021.
The amended complaint alleged, among other things, that the Company and certain of its current and former officers and directors made false and misleading statements and failed to disclose certain information regarding the safety of the Company’s ships and success of its commercial flight program. Co-lead plaintiffs seek damages, interest, costs, expenses, attorneys’ fees, and other unspecified equitable relief. The defendants moved to dismiss the amended complaint and, on November 7, 2022, the Court granted in part and denied in part the defendants’ motion and gave the plaintiffs leave to file a further amended complaint.
Plaintiffs sought leave to file a second amended complaint on December 12, 2022, and subsequently filed that complaint on February 9, 2023. The second amended complaint contains many of the same allegations as in the first amended complaint. The defendants moved to dismiss the second amended complaint and, on August 8, 2023, the Court granted in part and denied in part the defendants’ motion and did not give plaintiffs leave to file a further amended complaint. Plaintiffs moved for reconsideration of the Court’s dismissal order and, on December 19, 2023, the Court denied plaintiffs’ motion. On March 27, 2024, the defendants moved for judgment on the pleadings as to the remaining Section 10(b) insider trading claim alleged against Branson. On April 2, 2024, the Court stayed briefing on defendants’ motion for judgment on the pleadings pending resolution of plaintiffs’ anticipated motion for leave to add a new representative plaintiff, which plaintiffs subsequently filed on May 1, 2024. The Court granted plaintiffs’ motion on July 2, 2024. On July 8, 2024, defendants withdrew their motion for judgment on the pleadings.
On August 21, 2024, plaintiffs filed a third amended complaint in which Xinqiang Cui, Justin Carlough, Jennifer Ortiz, Richard O’Keefe-Jones, Vipul Gupta, Maria Josephine Rosales, and Hesham Ibrahim (previously named plaintiffs), were designated by plaintiffs as lead plaintiffs (in addition to Robert Scheele and Mark Kusnier), and an additional named plaintiff, Montgomery Brantley, was added. The third amended complaint contains substantively the same allegations as in the second amended complaint. On September 11, 2024, defendants filed an answer to plaintiffs’ third amended complaint.
On October 12, 2024, plaintiffs filed a motion to certify their proposed class. The defendants filed an opposition to plaintiffs’ motion on December 20, 2024, plaintiffs filed their reply on January 24, 2025, and defendants filed a sur-reply on March 21, 2025. On February 27, 2026, the Court entered an order denying the motion as moot in light of the parties’ settlement (see below).
On February 12, 2025, plaintiffs submitted a letter request to the Court seeking permission to file a motion for leave to file a Fourth Amended Complaint. On March 17, 2025, the Court granted plaintiffs’ request to file a motion for leave to amend, which plaintiffs did on March 26, 2025. Defendants filed their opposition on April 11, 2025, and plaintiffs filed their reply on April 23, 2025. On June 12, 2025, the Court issued an order allowing plaintiffs to file a fourth amended complaint. On June 26, 2025, plaintiffs filed their fourth amended complaint.

On July 18, 2025, plaintiffs and defendants (“Parties”) executed a Memorandum of Understanding (“MOU”) outlining the terms of a settlement to resolve all claims in the above-referenced action. In connection with the MOU, the Company recorded the expected net settlement of $2.25 million and included it in selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive loss for the year ended December 31, 2025. Pursuant to the MOU, the Company has agreed to pay $8.5 million, of which the Company currently expects $6.25 million to be covered and paid directly by the Company’s insurers pursuant to insurance policies. The Company accrued a liability for the gross settlement amount and also recorded a receivable for the portion of the settlement that is expected to be covered directly by insurance. On November 4, 2025, plaintiffs asked the Court to preliminarily approve the Parties’ settlement. On March 11, 2026, the Court entered an order granting preliminary approval of the settlement. The Company will make all payments related to the settlement by the second quarter of 2026, and expects the Court to provide final approval of the settlement and judgment later in 2026.
Spiteri, Grenier, Laidlaw, St. Jean, and Gera derivatively on behalf of the Company vs. Certain Current and Former Officers and Directors
On February 21, 2022, March 1, 2022, September 21, 2022, December 13, 2022, and July 11, 2024, five alleged shareholders filed separate derivative complaints purportedly on behalf of the Company against certain of the Company’s current and former officers and directors in the Eastern District of New York captioned Spiteri v. Branson et al., Case No. 1:22-cv-00933 (“Spiteri Action”), Grenier v. Branson et al., Case No. 1:22-cv-01100 (“Grenier Action”), Laidlaw v. Branson et al., Case No. 1:22-cv-05634 (“Laidlaw Action”), St. Jean v. Branson et al., Case No. 1:22-cv-7551 (“St. Jean Action”), and Gera v. Branson et al., Case No. 1:24-cv-04795 (“Gera Action”), respectively. On May 4, 2022, the Spiteri and Grenier Actions were consolidated and recaptioned In re Virgin Galactic Holdings, Inc. Derivative Litigation, Case No. 1:22-cv-00933 (“Consolidated Derivative Action”). On September 30, 2023, the Laidlaw Action was consolidated into the Consolidated Derivative Action. On September 12, 2024, the Gera Action was consolidated into the Consolidated Derivative Action. Collectively, the complaints assert violations of Sections 10(b), 14(a), and 21D of the Exchange Act of 1934 and claims of breach of fiduciary duty, aiding and abetting breach of fiduciary duty, abuse of control, gross mismanagement, waste of corporate assets, contribution and indemnification, and unjust enrichment arising from substantially similar allegations as those contained in the securities class action described above. The complaints seek an unspecified sum of damages, interest, restitution, expenses, attorneys’ fees and other equitable relief. The parties are currently exploring a potential resolution of the Consolidated Derivative Action and the St. Jean Action.
Abughazaleh derivatively on behalf of the Company vs. Certain Current and Former Officers and Directors
On February 13, 2023, alleged shareholder Yousef Abughazaleh filed a derivative complaint purportedly on behalf of the Company against certain of the Company’s current and former officers and directors in the District of Delaware captioned Abughazaleh v. Branson et al., Case No. 23-156-MN. The complaint asserts violations of Section 14(a) of the Exchange Act of 1934 and SEC Rule 14a-9, and claims of breach of fiduciary duty, contribution and indemnification, and unjust enrichment arising from substantially similar allegations as those contained in the securities class action described above.
The complaint seeks an unspecified sum of damages, interest, restitution, expenses, attorneys’ fees and other equitable relief. The Abughazaleh Action is presently stayed.
Molnar and Tubbs derivatively on behalf of the Company vs. Certain Current and Former Officers and Directors
On April 9, 2024, alleged shareholders Crystal Molnar and Cleveland Tubbs filed a derivative complaint purportedly on behalf of the Company against certain of the Company’s current and former officers and directors in the Central District of California captioned Molnar v. Branson et al., Case No. 8:24-cv-775. The complaint asserts violations of Section 10(b) and 21D of the Exchange Act of 1934, and claims of breach of fiduciary duty and unjust enrichment arising from substantially similar allegations as those contained in the securities class action described above.
The complaint seeks an unspecified sum of damages, restitution, expenses, attorneys’ fees, and other equitable relief.
On July 11, 2025, the Court entered an order to show cause regarding dismissal for lack of prosecution. In response, on July 16, 2025, plaintiffs filed a joint stipulation of voluntary dismissal without prejudice indicating their intention to participate in the Espinosa action pending in Delaware Chancery Court. On July 17, 2025, the Court granted plaintiffs’ stipulation and entered an order of dismissal.
Espinosa derivatively on behalf of the Company vs. Certain Current and Former Officers and Directors
On September 3, 2024, alleged shareholder Kimberly Espinosa filed a derivative complaint purportedly on behalf of the Company against certain of the Company’s current and former officers and directors (the “Individual Defendants”) in the Delaware Court of Chancery captioned Espinosa v. Branson et al., Case No. 2024-0895-JTL. The complaint asserts claims of breach of fiduciary duty and unjust enrichment arising from substantially similar allegations as those contained in the securities class action described above.
The complaint seeks an unspecified sum of damages, interest, restitution, expenses, attorneys’ fees and other equitable relief. On August 12, 2025, the Court granted plaintiff Crystal Molnar’s unopposed motion to intervene in the Espinosa action. On August 14, 2025, the Company and the Individual Defendants filed a motion to dismiss the complaint. In response to the motion to dismiss, plaintiffs Espinosa and Molnar communicated their intent to file an amended complaint. Per Court order adopting the parties’ stipulation, plaintiffs filed an amended complaint on October 29, 2025. On December 23, 2025, the Company and the Individual Defendants filed a motion to dismiss the amended complaint.
On February 3, 2026, in light of ongoing settlement discussions in the Consolidated and St. Jean Actions (see above), the parties filed a stipulation seeking to stay the Espinosa Action, including remaining briefing on the Company’s and the Individual Defendants’ motion to dismiss the amended complaint, for 120 days following the Court’s entry of the stay.
v3.26.1
Related Party Transactions
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
The Company licenses its brand name from certain entities affiliated with Virgin Enterprises Limited (“VEL”), a company incorporated in England. VEL is an affiliate of the Company. Under the trademark license, the Company has the exclusive right to operate under the brand name “Virgin Galactic” worldwide. Royalties payable, excluding sponsorship royalties, are the greater of (a) a low single-digit percentage of gross sales and (b) (i) prior to the first spaceflight for paying astronauts, a mid-five figure amount in dollars and (ii) from the first spaceflight for paying astronauts, a low-six figure amount in dollars, which increases to a low-seven figure amount in dollars over a four-year ramp up and thereafter increases in correlation with the consumer price index. Royalties payable on sponsorships are based on a mid-double-digit percentage of the related gross sales. During the years ended December 31, 2025 and 2024, the Company incurred royalty expenses of $2.5 million and $1.5 million, respectively.
v3.26.1
Supplemental Cash Flow Information
 12 Months Ended
Dec. 31, 2025
Supplemental Cash Flow Elements [Abstract]  
Supplemental Cash Flow Information Supplemental Cash Flow Information
Year Ended December 31,
20252024
(In thousands)
Supplemental disclosure of cash flow information:
Cash payments for:
Interest$8,686 $10,625 
Supplemental disclosure of non-cash investing and financing activities:
Unpaid purchases of property, plant and equipment$8,346 $11,054 
Issuance of common stock through RSUs vested 641 2,346 
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.26.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.26.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We utilize a risk-based approach to cybersecurity and data privacy to identify, assess, and manage information and cybersecurity risks applicable to our business, and protect the confidentiality, integrity, and availability of our systems and information.
We have developed and implemented an Information Security Governance Program which is structured for alignment with business objectives and visibility of material risks by senior leadership. This Program includes our cybersecurity incident response plan and supporting policies that provide guidance on detecting, assessing, reporting, and responding to cybersecurity incidents. The cybersecurity response plan is designed to ensure that senior leadership is informed about security incidents as they happen, and security incidents are managed through to closure. We have not identified any risks or incidents from known cybersecurity threats, including any residual impacts resulting from any prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect our operations, business strategy, results of operations, or financial condition.
Our defensive strategy is carefully managed to prevent threats that could materially impact our business operations, financial position or business strategy. We integrate several tools, policies, and services to support this strategy. These are oriented around and informed by industry standard frameworks and publications, specifically the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF) and NIST SP 800-171. This does not imply that we meet any particular technical standards, specifications, or requirements, only that we use the NIST CSF and NIST SP 800-171 as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business.
We extend our cybersecurity and data privacy standards to our vendors and third-party service providers, where appropriate, as part of our Information Security Governance Program. Where applicable, we seek vendor compliance with industry standards such as ISO 27001 and SOC 2.
Our Vice President of Enterprise Technology & Information Security is principally responsible for executing our cybersecurity risk management program and has more than 18 years of experience in cybersecurity, including over 8 years in a leadership role for domestic and international organizations. He is supported by our Information Security Department, which includes relevant expertise and leadership, and by external cybersecurity consultants as needed. The Information Security Department is focused on assessing and managing our material risks from cybersecurity threats and takes steps to stay informed about and monitor efforts for the prevention, detection, and minimization of the effects of cybersecurity incidents through various means, which may include routine in-house and third-party testing, auditing, patch and vulnerability management, identity and access management, data loss prevention, threat intelligence and other information obtained from governmental, public, or private sources, including external consultants engaged by us, and comprehensive alerting and reporting from operational tools and services deployed in our information technology environment.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
We utilize a risk-based approach to cybersecurity and data privacy to identify, assess, and manage information and cybersecurity risks applicable to our business, and protect the confidentiality, integrity, and availability of our systems and information.
We have developed and implemented an Information Security Governance Program which is structured for alignment with business objectives and visibility of material risks by senior leadership. This Program includes our cybersecurity incident response plan and supporting policies that provide guidance on detecting, assessing, reporting, and responding to cybersecurity incidents. The cybersecurity response plan is designed to ensure that senior leadership is informed about security incidents as they happen, and security incidents are managed through to closure. We have not identified any risks or incidents from known cybersecurity threats, including any residual impacts resulting from any prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect our operations, business strategy, results of operations, or financial condition.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our Board of Directors considers cybersecurity risk as part of its risk oversight function and has delegated oversight of cybersecurity risks to the Audit Committee, including management’s implementation of our cybersecurity risk management program. The Audit Committee reports to the full Board regarding its activities, including those related to cybersecurity. Our Information Security Department presents the status of the Information Security Program to the Audit Committee quarterly and includes technical capability enhancements, threat intelligence, information about certain cybersecurity incidents (if any) that it considers to be significant, where it deems appropriate, and resource performance to demonstrate the risk posture and cyber risk management practices of the organization. The Audit Committee’s risk-based decisions related to cybersecurity are primarily reflective of the information presented.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]
Our Vice President of Enterprise Technology & Information Security is principally responsible for executing our cybersecurity risk management program and has more than 18 years of experience in cybersecurity, including over 8 years in a leadership role for domestic and international organizations. He is supported by our Information Security Department, which includes relevant expertise and leadership, and by external cybersecurity consultants as needed. The Information Security Department is focused on assessing and managing our material risks from cybersecurity threats and takes steps to stay informed about and monitor efforts for the prevention, detection, and minimization of the effects of cybersecurity incidents through various means, which may include routine in-house and third-party testing, auditing, patch and vulnerability management, identity and access management, data loss prevention, threat intelligence and other information obtained from governmental, public, or private sources, including external consultants engaged by us, and comprehensive alerting and reporting from operational tools and services deployed in our information technology environment.
Our Board of Directors considers cybersecurity risk as part of its risk oversight function and has delegated oversight of cybersecurity risks to the Audit Committee, including management’s implementation of our cybersecurity risk management program. The Audit Committee reports to the full Board regarding its activities, including those related to cybersecurity. Our Information Security Department presents the status of the Information Security Program to the Audit Committee quarterly and includes technical capability enhancements, threat intelligence, information about certain cybersecurity incidents (if any) that it considers to be significant, where it deems appropriate, and resource performance to demonstrate the risk posture and cyber risk management practices of the organization. The Audit Committee’s risk-based decisions related to cybersecurity are primarily reflective of the information presented.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
Our Vice President of Enterprise Technology & Information Security is principally responsible for executing our cybersecurity risk management program and has more than 18 years of experience in cybersecurity, including over 8 years in a leadership role for domestic and international organizations. He is supported by our Information Security Department, which includes relevant expertise and leadership, and by external cybersecurity consultants as needed. The Information Security Department is focused on assessing and managing our material risks from cybersecurity threats and takes steps to stay informed about and monitor efforts for the prevention, detection, and minimization of the effects of cybersecurity incidents through various means, which may include routine in-house and third-party testing, auditing, patch and vulnerability management, identity and access management, data loss prevention, threat intelligence and other information obtained from governmental, public, or private sources, including external consultants engaged by us, and comprehensive alerting and reporting from operational tools and services deployed in our information technology environment.
Our Board of Directors considers cybersecurity risk as part of its risk oversight function and has delegated oversight of cybersecurity risks to the Audit Committee, including management’s implementation of our cybersecurity risk management program. The Audit Committee reports to the full Board regarding its activities, including those related to cybersecurity. Our Information Security Department presents the status of the Information Security Program to the Audit Committee quarterly and includes technical capability enhancements, threat intelligence, information about certain cybersecurity incidents (if any) that it considers to be significant, where it deems appropriate, and resource performance to demonstrate the risk posture and cyber risk management practices of the organization. The Audit Committee’s risk-based decisions related to cybersecurity are primarily reflective of the information presented.
Cybersecurity Risk Role of Management [Text Block]
Our Vice President of Enterprise Technology & Information Security is principally responsible for executing our cybersecurity risk management program and has more than 18 years of experience in cybersecurity, including over 8 years in a leadership role for domestic and international organizations. He is supported by our Information Security Department, which includes relevant expertise and leadership, and by external cybersecurity consultants as needed. The Information Security Department is focused on assessing and managing our material risks from cybersecurity threats and takes steps to stay informed about and monitor efforts for the prevention, detection, and minimization of the effects of cybersecurity incidents through various means, which may include routine in-house and third-party testing, auditing, patch and vulnerability management, identity and access management, data loss prevention, threat intelligence and other information obtained from governmental, public, or private sources, including external consultants engaged by us, and comprehensive alerting and reporting from operational tools and services deployed in our information technology environment.
Our Board of Directors considers cybersecurity risk as part of its risk oversight function and has delegated oversight of cybersecurity risks to the Audit Committee, including management’s implementation of our cybersecurity risk management program. The Audit Committee reports to the full Board regarding its activities, including those related to cybersecurity. Our Information Security Department presents the status of the Information Security Program to the Audit Committee quarterly and includes technical capability enhancements, threat intelligence, information about certain cybersecurity incidents (if any) that it considers to be significant, where it deems appropriate, and resource performance to demonstrate the risk posture and cyber risk management practices of the organization. The Audit Committee’s risk-based decisions related to cybersecurity are primarily reflective of the information presented.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
Our Vice President of Enterprise Technology & Information Security is principally responsible for executing our cybersecurity risk management program and has more than 18 years of experience in cybersecurity, including over 8 years in a leadership role for domestic and international organizations. He is supported by our Information Security Department, which includes relevant expertise and leadership, and by external cybersecurity consultants as needed. The Information Security Department is focused on assessing and managing our material risks from cybersecurity threats and takes steps to stay informed about and monitor efforts for the prevention, detection, and minimization of the effects of cybersecurity incidents through various means, which may include routine in-house and third-party testing, auditing, patch and vulnerability management, identity and access management, data loss prevention, threat intelligence and other information obtained from governmental, public, or private sources, including external consultants engaged by us, and comprehensive alerting and reporting from operational tools and services deployed in our information technology environment.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our Vice President of Enterprise Technology & Information Security is principally responsible for executing our cybersecurity risk management program and has more than 18 years of experience in cybersecurity, including over 8 years in a leadership role for domestic and international organizations.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
Our Vice President of Enterprise Technology & Information Security is principally responsible for executing our cybersecurity risk management program and has more than 18 years of experience in cybersecurity, including over 8 years in a leadership role for domestic and international organizations. He is supported by our Information Security Department, which includes relevant expertise and leadership, and by external cybersecurity consultants as needed. The Information Security Department is focused on assessing and managing our material risks from cybersecurity threats and takes steps to stay informed about and monitor efforts for the prevention, detection, and minimization of the effects of cybersecurity incidents through various means, which may include routine in-house and third-party testing, auditing, patch and vulnerability management, identity and access management, data loss prevention, threat intelligence and other information obtained from governmental, public, or private sources, including external consultants engaged by us, and comprehensive alerting and reporting from operational tools and services deployed in our information technology environment.
Our Board of Directors considers cybersecurity risk as part of its risk oversight function and has delegated oversight of cybersecurity risks to the Audit Committee, including management’s implementation of our cybersecurity risk management program. The Audit Committee reports to the full Board regarding its activities, including those related to cybersecurity. Our Information Security Department presents the status of the Information Security Program to the Audit Committee quarterly and includes technical capability enhancements, threat intelligence, information about certain cybersecurity incidents (if any) that it considers to be significant, where it deems appropriate, and resource performance to demonstrate the risk posture and cyber risk management practices of the organization. The Audit Committee’s risk-based decisions related to cybersecurity are primarily reflective of the information presented.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.26.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation and Statement of Operations Presentation
Basis of Presentation
These consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). All intercompany transactions and balances between the various legal entities comprising the Company have been eliminated in consolidation.
Use of Estimates
Use of Estimates
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are based on historical experience and on various other assumptions that management believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates. Significant estimates and judgments affecting the consolidated financial statements are those related to long-lived assets, income taxes, stock-based compensation and warrants.
Cash and Cash Equivalents
Cash and Cash Equivalents
The Company considers all highly liquid investments with an original maturity of three months or less on their acquisition date to be cash equivalents.
Restricted Cash
Restricted Cash
Restricted cash consists of cash deposits received from future astronauts that are contractually restricted for operational use until the condition of carriage is signed or the deposits are refunded.
Marketable Securities
Marketable Securities
The Company’s marketable securities consist primarily of debt securities that are accounted for as “available-for-sale.” Management determines the appropriate classification of investments at the time of purchase and reevaluates the classification at each balance sheet date. Marketable securities are classified as short-term and long-term based on the instrument’s underlying contractual maturity date. The Company’s marketable securities are carried at fair value, with unrealized gains and losses, net of income taxes, reported as a component of accumulated other comprehensive income in the consolidated balance sheets, with the exception of unrealized losses believed to be other-than-temporary, which are reported in the consolidated statements of operations and comprehensive loss in the period in which such determination is made.
Concentration of Credit Risk
Concentration of Credit Risk
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents, restricted cash and marketable securities. Cash and cash equivalents are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits.
The Company invests primarily in debt securities, the majority of which are high investment grade. In accordance with the Company’s investment policy, exposure to credit risk is limited by the diversification and investment in highly rated securities.
Property, Plant, and Equipment
Property, Plant and Equipment
Property, plant and equipment are stated at cost. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease term or estimated useful life.
The estimated useful lives are as follows:
AssetUseful Life
Buildings39 years
Flight vehicles and rotables
2 to 20 years
Machinery and equipment
2 to 7 years
Information technology software and equipment
3 to 6 years
Leasehold improvementsShorter of the estimated useful life or lease term
Repair and maintenance costs are expensed as incurred.
Leases
Leases
The Company determines whether an arrangement contains a lease at inception. For identified leases, the Company determines whether it should be classified as an operating or finance lease. Operating leases are recorded in the balance sheet as a right-of-use asset (“ROU asset”) and operating lease obligation. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the commencement date of the lease and measured based on the present value of lease payments over the lease term. The Company’s lease arrangements generally do not provide an implicit interest rate. As a result, in such situations, the Company uses its incremental borrowing rate, which was determined based on market yields. The Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option in the measurement of its ROU assets and liabilities. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company has some lease agreements with lease and non-lease components, which are accounted for as a single lease component. Variable lease payments primarily consist of lease payments resulting from
changes in the consumer price index. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the change occurs. Variable payments for common area maintenance costs and taxes are not included in determining lease payments and are expensed as incurred. The Company does not recognize ROU assets and lease liabilities for leases with terms at inception of twelve months or less.
Long-Lived Assets
Long-Lived Assets
Long-lived assets primarily consist of property, plant and equipment and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset group to its carrying amount. The Company assesses impairment for asset groups, which represent a combination of assets that produce distinguishable cash flows. If the carrying amount of the asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. During the years ended December 31, 2025 and 2024, no material asset impairments were recorded.
Debt Issuance Costs and Premiums and Convertible Senior Notes
Debt Issuance Costs and Premiums
Debt issuance costs and premiums are presented in the consolidated balance sheets as a direct deduction from or addition to the carrying amount of the related debt and are amortized or accreted, using the effective interest method, as interest expense over the contractual lives of the related debt.
The Company accounts for exchanges of debt in accordance with ASC 470-60, Troubled Debt Restructurings by Debtors (“ASC 470-60”), which has resulted in certain debt being carried at a premium relative to its principal amount as well as a portion of contractual interest cost being recorded as a reduction of that premium rather than as interest expense.
Convertible Senior Notes
Convertible debt instruments are separated into multiple components if they are issued at a substantial premium or if embedded derivatives requiring bifurcation are identified. The Company’s convertible senior notes (the “2027 Notes”) were not issued at a substantial premium, and the Company analyzed the provisions of the notes and did not identify any material embedded features which would require bifurcation from the host debt. As such, the notes are accounted for entirely as a liability, net of unamortized issuance costs. At the end of each reporting period, the Company evaluates whether conditions are present that would require bifurcation. The embedded conversion features are not remeasured as long as they do not meet the separation requirement of a derivative. The impact of convertible instruments on diluted earnings per share is calculated using the if-converted method.
Capped Call Transactions
Capped Call Transactions
In connection with the pricing of the 2027 Notes, the Company entered into capped call transactions with respect to its common stock (the “2027 Capped Calls”). The 2027 Capped Calls are purchased call options that give the Company the option to purchase shares of the Company’s common stock, subject to anti-dilution adjustments substantially identical to those in the 2027 Notes. The Company’s capped call transactions are accounted for as separate transactions from the 2027 Notes and are classified as equity instruments as a reduction to additional paid-in capital in the accompanying consolidated balance sheets. The instruments are initially recorded at fair value and not subsequently remeasured so long as they continue to qualify for equity classification based on the Company’s intent and ability for the 2027 Capped Calls to be settled in shares of the Company’s common stock. At the end of each reporting period, the Company evaluates whether the instruments continue to qualify for equity classification. The capped call transactions have the effect of reducing the number of shares outstanding if exercised, hence reduces the potential dilution. Therefore, the capped call transactions are anti-dilutive and not included in the calculation of diluted shares outstanding. See Note 9 for additional information on the 2027 Capped Calls.
Warrants
Warrants
The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms. The assessment considers whether the warrants are freestanding financial instruments and whether the warrants meet all of the requirements for equity classification, including whether the warrants are indexed to the Company’s own common stock. Warrants that meet all of the criteria for equity classification are recorded in stockholders’ equity at fair value as of the date of issuance and are not remeasured to fair value in subsequent reporting periods.
Warrants that do not meet the criteria for equity classification are recorded as liabilities at fair value, with changes in fair value recognized in earnings each reporting period.
The Company’s issued warrants meet the criteria for equity classification.
Fair Value Measurements
Fair Value Measurements
Assets and liabilities subject to fair value measurements are required to be disclosed within a fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair value. Accordingly, assets and liabilities carried at fair value are classified within the fair value hierarchy in one of the following categories:
• Level 1 inputs — Quoted prices in active markets for identical assets or liabilities.
• Level 2 inputs — Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.
• Level 3 inputs — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability.
Segments
Segments
Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer.
The Company has determined that it operates in one operating segment and one reportable segment, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources and evaluating financial performance. The CODM assesses performance for the segment and decides how to allocate resources based on net loss that is reported on the consolidated statements of operations and comprehensive loss. The CODM uses net loss to assess financial performance and allocate resources to align with company-wide goals. Further, the measure of segment assets is reported on the consolidated balance sheets as total assets.
Revenue Recognition
Revenue Recognition
The Company recognizes revenue when control of the promised service is transferred to its customers in an amount that reflects the consideration the Company expects to receive based on the contracted amount for those services. For contracts which include a combination of services, the Company assesses and accounts for individual services separately if they are distinct performance obligations, which often requires judgment based upon knowledge of the services and structure of the sales contract. The Company allocates the contract price to each performance obligation based on the estimated standalone selling price using observable pricing from our contracts with single performance obligations.
Human spaceflight services are those services provided to the majority of the Company’s customers. Spaceflight service revenue is recognized at a point in time upon successful completion of a spaceflight. The Company recognizes revenue for astronaut community access fees, engineering services and sponsorships over the term of the respective arrangement.
Contract balances
Contract assets are comprised of billed accounts receivable and unbilled receivables, which is the result of timing of revenue recognition, billings and cash collections. The Company records accounts receivable when it has an unconditional right to consideration.
Contract liabilities relate to spaceflight operations and other revenue contracts and are recorded when cash payments are received or due in advance of performance. Cash payments for spaceflight services are classified as customer deposits until enforceable rights and obligations exist, when such deposits also become nonrefundable. Customer deposits become nonrefundable and are recorded as deferred revenue following the Company’s delivery of the conditions of carriage to the customer and execution of an informed consent.
Spaceline Operations
Spaceline Operations
Spaceline operations expense includes costs to maintain and operate the Company’s spaceflight systems; non-capitalizable costs to build new vehicles and manufacture items required to support the making of the Company’s vehicles, such as rocket motors and spare parts; the consumption of rocket motors, fuel and other consumables; costs to maintain and support the Company’s astronaut community; and costs to provide payload cargo and engineering services.
Research and Development
Research and Development
Research and development expenses represent costs incurred to support activities that advance the Company’s future fleet towards commercialization, including basic research, applied research, concept formulation studies, design, development, and related testing activities. Research and development costs consist primarily of equipment, material, and labor costs (including from third-party contractors) for designing the spaceflight system’s structure, spaceflight propulsion system, and flight profiles for next-generation spaceships and launch vehicles, as well as allocated facilities and other supporting overhead costs.
Income Taxes
Income Taxes
Income tax expense is computed using the asset and liability method. Deferred tax assets and liabilities are determined based on the temporary differences between the financial reporting and tax bases of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the differences are expected to reverse. Future income tax benefits are recognized only to the extent that the realization of such benefits is considered to be more likely than not. The Company regularly reviews its deferred tax assets for recoverability and establishes a valuation allowance, when it is more likely than not that such deferred tax assets will not be recoverable, based on historical taxable income, projected future taxable income, and the expected timing of the reversals of the existing temporary differences.
Stock-Based Compensation
Stock-Based Compensation
The Company accounts for stock-based compensation under the fair value recognition and measurement provisions, in accordance with applicable accounting standards, which require compensation expense for the grant-date fair value of stock-based awards to be recognized over the requisite service period. Forfeitures are accounted for when they occur.
Service-Based Awards
The Company estimates the fair value for each service-based stock option award as of the date of grant using the Black-Scholes option pricing model. The Black-Scholes option pricing model considers, among other factors, the expected life of the award and the expected volatility of the Company’s stock price. The Company recognizes the stock-based compensation expense over the requisite service period using the straight-line method for service condition only stock option awards.
Compensation expense for restricted stock units (“RSUs”) that will be equity-settled is based on the market price of the shares underlying the awards on the grant date. The Company recognizes the stock-based compensation expense for these RSUs over the requisite service period.
RSUs that are expected to be settled in cash are accounted for as liability-classified awards. Changes in the fair value of these awards are recorded on a quarterly basis through their final vesting. Compensation expense is recognized over the requisite service period of the award, with recognition of a corresponding liability recorded in other current liabilities in the accompanying consolidated balance sheets. Changes in fair value are recognized in stock-based compensation expense.
Performance-Based Awards
The Company has granted performance stock units (“PSUs”) with a service-based condition and market-based condition. PSUs with both service-based and market-based conditions vest based on the performance over the requisite service period.
The Company has granted performance-based stock options (“PSOs”) with market-based conditions. The number of PSOs that vest depends on the attainment of certain performance measures. The Company recognizes compensation expense on the PSOs over the period between the grant date and the estimated vest date.
The fair value for each PSU and PSO award with market-based conditions as of the grant date is estimated using the Monte-Carlo simulation method. The Monte-Carlo simulation method considers, among other factors, the discount rate and future market conditions.
Employee Stock Purchase Plan (“ESPP”)
The Company has adopted an ESPP and the plan is considered compensatory. Eligible employees of the Company who elect to participate are granted an option to purchase common stock under the ESPP at 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. The Company estimates the fair value using the Black-Scholes model as of the commencement date of the offering period and recognizes stock-based compensation on a straight-line basis over the offering period.
v3.26.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Schedule of Property, Plant, and Equipment
The estimated useful lives are as follows:
AssetUseful Life
Buildings39 years
Flight vehicles and rotables
2 to 20 years
Machinery and equipment
2 to 7 years
Information technology software and equipment
3 to 6 years
Leasehold improvementsShorter of the estimated useful life or lease term
Property, plant and equipment consists of the following:
December 31,
20252024
(In thousands)
Land$1,302 $1,302 
Buildings10,111 10,111 
Flight vehicles and rotables4,331 4,331 
Machinery and equipment44,913 42,792 
Information technology software and equipment52,130 45,553 
Leasehold improvements77,853 77,589 
Construction in progress302,726 117,810 
493,366 299,488 
Less: accumulated depreciation and amortization
104,63690,374
$388,730 $209,114 
v3.26.1
Cash, Cash Equivalents and Marketable Securities (Tables)
 12 Months Ended
Dec. 31, 2025
Cash and Cash Equivalents [Abstract]  
Schedule of Cash, Cash Equivalents and Marketable Securities
The amortized cost, unrealized gain and estimated fair value of the Company’s cash, cash equivalents and marketable securities are as follows:
December 31, 2025
Amortized Cost
Gross Unrealized Gain
Fair Value
(In thousands)
Cash and cash equivalents:
Cash and restricted cash$7,687 $— $7,687 
Money market168,028 — 168,028 
Marketable securities:
U.S. treasuries9,884 14 9,898 
Corporate bonds152,372 43 152,415 
$337,971 $57 $338,028 
December 31, 2024
Amortized Cost
Gross Unrealized Gain
Fair Value
(In thousands)
Cash and cash equivalents:
Cash and restricted cash$8,232 $— $8,232 
Money market202,653 — 202,653 
Marketable securities:
U.S. treasuries34,694 37 34,731 
Corporate bonds410,998 172 411,170 
$656,577 $209 $656,786 
v3.26.1
Property, Plant and Equipment (Tables)
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant, and Equipment
The estimated useful lives are as follows:
AssetUseful Life
Buildings39 years
Flight vehicles and rotables
2 to 20 years
Machinery and equipment
2 to 7 years
Information technology software and equipment
3 to 6 years
Leasehold improvementsShorter of the estimated useful life or lease term
Property, plant and equipment consists of the following:
December 31,
20252024
(In thousands)
Land$1,302 $1,302 
Buildings10,111 10,111 
Flight vehicles and rotables4,331 4,331 
Machinery and equipment44,913 42,792 
Information technology software and equipment52,130 45,553 
Leasehold improvements77,853 77,589 
Construction in progress302,726 117,810 
493,366 299,488 
Less: accumulated depreciation and amortization
104,63690,374
$388,730 $209,114 
v3.26.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Lease Expense and Cash Flow Information
The components of expense related to leases are as follows:
Year Ended December 31,
20252024
(In thousands)
Operating lease cost$13,173 $13,496 
Variable lease cost2,654 3,842 
Short-term lease cost— 22 
Finance lease cost:
Amortization of assets under finance leases
221 223 
Interest on finance lease liabilities60 68 
Total finance lease cost281 291 
Total lease cost$16,108 $17,651 
The components of supplemental cash flow information related to leases are as follows:
Year Ended December 31,
20252024
 (In thousands, except term and rate data)
Cash Flow Information:
Operating cash flows for operating leases$13,719 $13,215 
Operating cash flows for finance leases$60 $68 
Financing cash flows for finance leases
$211 $193 
Non-cash Activity:
Assets acquired in exchange for lease obligations:
Operating leases$3,247 $5,408 
Finance leases$101 $51 
Adjustment to operating lease right-of-use assets from lease modification$(18,900)$— 
Other Information:
Weighted-average remaining lease term:
Operating leases (in years)6.98.7
Finance leases (in years)2.12.6
Weighted-average discount rates:
Operating leases12.4 %12.2 %
Finance leases13.8 %13.3 %
Schedule of Balance Sheet Information
The supplemental balance sheet information related to leases is as follows:
December 31,
20252024
(In thousands)
Operating Leases:
Long-term right-of-use assets$36,882 $58,039 
Short-term operating lease liabilities$8,475 $5,604 
Long-term operating lease liabilities42,279 67,394 
Total operating lease liabilities$50,754 $72,998 
v3.26.1
Other Current Liabilities (Tables)
 12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Schedule of Other Current Liabilities
The components of other current liabilities are as follows:
December 31,
20252024
(In thousands)
Accrued compensation$31,951 $30,705 
Accrued manufacturing sub-contractor and contract labor costs9,601 18,827 
Other26,243 12,289 
$67,795 $61,821 
v3.26.1
2025 Capital Realignment Transactions (Tables)
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Schedule of Warranrs Option Pricing Model
The Purchase Warrants were valued using the Black-Scholes option pricing model using the following assumptions:
Stock price
$3.21 
Expected life
5 years
Expected volatility
93.0 %
Risk free interest rate
3.6 %
Dividend yield
— %
v3.26.1
Long-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2025
Convertible Debt [Abstract]  
Schedule of Maturities and Mandatory Payments of Long-term Debt
A summary of the components of long-term debt is as follows:
December 31,
20252024
( In thousands)
2028 Notes$212,496 $— 
2027 Notes70,421 425,000 
Total contractual debt outstanding
282,917 425,000 
Unamortized debt premium
45,691 — 
Unamortized debt issuance costs
(4,416)(4,880)
Long-term debt
324,192 420,120 
Less: current portion of long-term debt47,830 — 
Non-current portion of long-term debt
$276,362 $420,120 
Schedule of Contractual Interest Payments
The following table presents the scheduled contractual interest payments for the 2028 Notes as of December 31, 2025. These contractual interest payments are allocated to the reduction of the recorded premium and interest expense as presented below. The amount of interest which reduces the recorded premium will be reported as a financing activity the Company’s consolidated statements of cash flows.
202620272028
Total
(In thousands)
Interest payments recorded as:
Reduction of recorded premium
$17,438 $15,099 $13,154 $45,691 
Interest expense
3,394 2,747 2,210 8,351 
Total interest payments
$20,832 $17,846 $15,364 $54,042 
Schedule of Future Principal Payments of Long-Term Debt
Maturities and mandatory payments of the contractual debt outstanding as of December 31, 2025 are as follows:
Year ending December 31,
(In thousands)
2026$30,392 
202780,552 
2028171,973 
$282,917 
v3.26.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Options Outstanding
A summary of activity for time-based stock options is as follows:
Number of SharesWeighted- Average Exercise PriceWeighted- Average Remaining Contractual Life (in years)Aggregate Intrinsic Value
Outstanding at December 31, 2023145,649 $280.60 6.0$— 
Granted— — 
Exercised— — 
Forfeited(19,104)235.80 
Outstanding at December 31, 2024126,545 287.43 5.2— 
Granted— — 
Exercised— — 
Forfeited(6,511)239.21 
Outstanding at December 31, 2025120,034 $290.05 4.2$— 
Exercisable at December 31, 2025119,403 $290.74 4.2$— 
A summary of activity for PSOs is as follows:
Number of SharesWeighted- Average Exercise PriceWeighted- Average Remaining Contractual Life (in years)Aggregate Intrinsic Value
Outstanding at December 31, 202320,284 $179.80 8.2$— 
Granted— — 
Exercised— — 
Forfeited— — 
Outstanding at December 31, 202420,284 179.80 7.2— 
Granted— — 
Exercised— — 
Forfeited— — 
Outstanding at December 31, 202520,284 $179.80 6.2$— 
Exercisable at December 31, 2025— $— 0.0$— 
Schedule of Restricted Stock Units Activity
A summary of activity for equity-classified RSUs is as follows:
SharesWeighted-Average Grant Date Fair Value
Outstanding at December 31, 2023319,627 $146.60 
Granted578,075 21.27 
Vested(152,019)179.55 
Forfeited(103,182)56.71 
Outstanding at December 31, 2024642,501 40.96 
Granted5,180,567 3.15 
Vested(253,542)51.18 
Forfeited(325,153)9.24 
Outstanding at December 31, 20255,244,373 $4.99 
Schedule of Liability-Classified RSUs
A summary of activity for liability-classified RSUs is as follows:
Shares
Outstanding at December 31, 2023
— 
Granted272,626 
Vested— 
Forfeited— 
Outstanding at December 31, 2024
272,626 
Granted— 
Vested(136,312)
Forfeited— 
Outstanding at December 31, 2025136,314 
Schedule of Performance Stock Unit Activity
A summary of activity for PSUs is as follows:
SharesWeighted-Average Grant Date Fair Value
Outstanding at December 31, 202349,176 $208.40 
Granted— — 
Vested— — 
Forfeited— — 
Outstanding at December 31, 202449,176 208.40 
Granted— — 
Vested— — 
Forfeited(20,506)279.98 
Outstanding at December 31, 202528,670 $157.20 
Schedule of Stock-Based Compensation Expense
A summary of stock-based compensation expense resulting from stock options, RSUs, PSUs, and the ESPP purchase rights included in the consolidated statements of operations and comprehensive loss is as follows:
Year Ended December 31,
20252024
(In thousands)
Spaceline operations$2,191 $4,023 
Research and development1,926 3,817 
Selling, general and administrative14,581 21,912 
Total stock-based compensation expense18,698 29,752 
Less: stock-based compensation expense for liability-classified awards
267 643 
Stock-based compensation expense for equity-classified awards
$18,431 $29,109 
v3.26.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Loss Before Income Taxes
Loss before income taxes consists of the following components:
Year Ended December 31,
20252024
(In thousands)
United States$(278,971)$(346,826)
International116 160 
Loss before income taxes$(278,855)$(346,666)
Schedule of Income Tax Expense
The components of income tax expense are as follows:
CurrentDeferredTotal
(In thousands)
Year ended December 31, 2025
Federal$— $— $— 
State7 — 7 
Foreign105 (60)45 
$112 $(60)$52 
Year ended December 31, 2024
Federal$— $— $— 
State10 — 10 
Foreign132 (68)64 
$142 $(68)$74 
Schedule of Deferred Tax Assets and Liabilities
Significant items comprising the Company’s deferred taxes are as follows:
December 31,
20252024
(In thousands)
Deferred tax assets:
Net operating losses$510,732 $447,735 
Research and development credits125,149 82,432 
Capitalized research and experimental expenditures96,515 129,951 
Goodwill170,556 189,132 
Book/tax basis difference in debt25,578 — 
Other31,398 37,488 
Total gross deferred tax assets959,928 886,738 
Valuation allowance(950,241)(870,427)
Net deferred tax assets9,687 16,311 
Deferred tax liabilities:
Operating lease right-of-use assets
(9,562)(14,986)
Other
(115)(1,375)
Total gross deferred tax liabilities(9,677)(16,361)
Net deferred tax assets (liabilities)
$10 $(50)
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of income tax expense with the amount computed by applying the federal statutory tax rate to loss before income taxes is as follows:
Year Ended December 31,
20252024
(In thousands, except percentages)
U.S. federal statutory rate$(58,560)21.0 %$(72,800)21.0 %
Research and development tax credits(10,607)3.8 %(14,558)4.2 %
Change in valuation allowance64,027 (23.0)%80,104 (23.1)%
Other, net5,192 (1.9)%7,328 (2.1)%
$52 — %$74 — %
Schedule of Income Tax Paid
Year Ended December 31,
20252024
(In thousands)
Supplemental disclosure of cash flow information:
Cash payments for:
Interest$8,686 $10,625 
Supplemental disclosure of non-cash investing and financing activities:
Unpaid purchases of property, plant and equipment$8,346 $11,054 
Issuance of common stock through RSUs vested 641 2,346 
Schedule of Uncertain Tax Positions A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows:
Year Ended December 31,
20252024
(In thousands)
Balance at the beginning of the year$20,607 $16,351 
Additions based on tax positions related to current year3,521 4,256 
Balance at the end of year$24,128 $20,607 
v3.26.1
Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Net Loss Per Share
The following table presents net loss per share and related information:        
Year Ended December 31,
20252024
(In thousands, except per share amounts)
Basic and diluted:
Net loss$(278,907)$(346,740)
Weighted-average common shares outstanding 51,242 24,955 
Basic and diluted net loss per share $(5.44)$(13.89)
Schedule of Antidilutive Securities Excluded from Computation of Loss Per Share
A summary of the total number of shares excluded in the diluted net loss per share calculation is as follows:
December 31,
20252024
(In thousands)
Stock options issued and outstanding120 127 
Performance stock options issued and outstanding20 20 
Unvested equity - classified restricted stock units issued and outstanding5,244 643 
Unvested performance stock units issued and outstanding29 49 
Shares related to the 2027 Notes (if-converted)275 1,662 
5,688 2,501 
v3.26.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Assets Measured on Recurring Basis
The following tables present the Company’s financial assets that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy:
December 31, 2025
Level 1Level 2Level 3Total
(In thousands)
Assets:
Money market$168,028 $— $— $168,028 
U.S. treasuries9,898 — — 9,898 
Corporate bonds— 152,415 — 152,415 
Total assets at fair value$177,926 $152,415 $— $330,341 
December 31, 2024
Level 1Level 2Level 3Total
(In thousands)
Assets:
Money market$202,653 $— $— $202,653 
U.S. treasuries
34,731 — — 34,731 
Corporate bonds— 411,170 — 411,170 
Total assets at fair value$237,384 $411,170 $— $648,554 
The following tables present the Company’s financial liabilities that are recorded at amortized cost, segregated among the appropriate levels within the fair value hierarchy:
December 31, 2025
Level 1Level 2Level 3Total
(In thousands)
Liabilities:
2028 Notes$— $173,184 $— $173,184 
2027 Notes— 57,592 — 57,592 
Total liabilities at fair value$— $230,776 $— $230,776 
December 31, 2024
Level 1Level 2Level 3Total
(In thousands)
Liabilities:
2027 Notes$— $186,252 $— $186,252 
Total liabilities at fair value$— $186,252 $— $186,252 
v3.26.1
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Operating Lease Maturities
Future minimum lease payments under noncancelable operating leases and future minimum finance lease payments as of December 31, 2025 are as follows:
Operating LeasesFinance
Leases
(In thousands)
Year ending December 31:
2026$14,191 $230 
202713,951 115 
20289,790 50 
20297,265 15 
20307,152 2 
Thereafter24,799 — 
Total payments77,148412
Less: present value discount/imputed interest26,394 54 
Present value of lease liabilities$50,754 $358 
Schedule of Finance Lease Maturities
Future minimum lease payments under noncancelable operating leases and future minimum finance lease payments as of December 31, 2025 are as follows:
Operating LeasesFinance
Leases
(In thousands)
Year ending December 31:
2026$14,191 $230 
202713,951 115 
20289,790 50 
20297,265 15 
20307,152 2 
Thereafter24,799 — 
Total payments77,148412
Less: present value discount/imputed interest26,394 54 
Present value of lease liabilities$50,754 $358 
v3.26.1
Supplemental Cash Flow Information (Tables)
 12 Months Ended
Dec. 31, 2025
Supplemental Cash Flow Elements [Abstract]  
Schedule of Income Tax Paid
Year Ended December 31,
20252024
(In thousands)
Supplemental disclosure of cash flow information:
Cash payments for:
Interest$8,686 $10,625 
Supplemental disclosure of non-cash investing and financing activities:
Unpaid purchases of property, plant and equipment$8,346 $11,054 
Issuance of common stock through RSUs vested 641 2,346 
v3.26.1
Summary of Significant Accounting Policies - Narrative (Details)
 12 Months Ended
Jun. 14, 2024
Dec. 31, 2025
segment
Related Party Transaction [Line Items]    
Operating segments   1
Reportable segments   1
Common Stock    
Related Party Transaction [Line Items]    
Reverse stock split, conversion ratio 0.05  
v3.26.1
Summary of Significant Accounting Policies - Schedule of Useful Lives of Property and Equipment (Details)
Dec. 31, 2025
Buildings  
Property, Plant and Equipment [Line Items]  
Useful life 39 years
Flight vehicles and rotables | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 2 years
Flight vehicles and rotables | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 20 years
Machinery and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 2 years
Machinery and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 7 years
Information technology software and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
Information technology software and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 6 years
v3.26.1
Cash, Cash Equivalents and Marketable Securities - Schedule of Marketable Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Cash and cash equivalents, Amortized Cost $ 175,715 $ 210,885 $ 253,592
Cash, cash equivalents and marketable securities, Amortized Cost 337,971 656,577  
Cash, cash equivalents and marketable securities, Gross Unrealized Gain 57 209  
Total assets at fair value 338,028 656,786  
U.S. treasuries      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Marketable securities, Amortized Cost 9,884 34,694  
Cash, cash equivalents and marketable securities, Gross Unrealized Gain 14 37  
Marketable securities, Fair Value 9,898 34,731  
Corporate bonds      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Marketable securities, Amortized Cost 152,372 410,998  
Cash, cash equivalents and marketable securities, Gross Unrealized Gain 43 172  
Marketable securities, Fair Value 152,415 411,170  
Cash and restricted cash      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Cash and cash equivalents, Amortized Cost 7,687 8,232  
Cash and cash equivalents, Fair Value 7,687 8,232  
Money market      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Cash and cash equivalents, Amortized Cost 168,028 202,653  
Cash and cash equivalents, Fair Value $ 168,028 $ 202,653  
v3.26.1
Cash, Cash Equivalents and Marketable Securities - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Cash and Cash Equivalents [Abstract]    
Interest receivable $ 2.0 $ 4.2
Amortization expense for marketable securities $ 6.1 $ 16.6
v3.26.1
Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross $ 493,366 $ 299,488
Less: accumulated depreciation and amortization 104,636 90,374
Property, Plant and Equipment, Net, Total 388,730 209,114
Land    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 1,302 1,302
Buildings    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 10,111 10,111
Flight vehicles and rotables    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 4,331 4,331
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 44,913 42,792
Information technology software and equipment    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 52,130 45,553
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 77,853 77,589
Construction in progress    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross $ 302,726 $ 117,810
v3.26.1
Leases - Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Operating lease cost $ 13,173 $ 13,496
Variable lease cost 2,654 3,842
Short-term lease cost 0 22
Finance lease cost:    
Amortization of assets under finance leases 221 223
Interest on finance lease liabilities 60 68
Total finance lease cost 281 291
Total lease cost $ 16,108 $ 17,651
v3.26.1
Leases - Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Cash Flow Information:    
Operating cash flows for operating leases $ 13,719 $ 13,215
Operating cash flows for finance leases 60 68
Financing cash flows for finance leases 211 193
Assets acquired in exchange for lease obligations:    
Operating leases 3,247 5,408
Finance leases 101 51
Adjustment to operating lease right-of-use assets from lease modification $ (18,900) $ 0
Weighted-average remaining lease term:    
Operating leases (in years) 6 years 10 months 24 days 8 years 8 months 12 days
Finance leases (in years) 2 years 1 month 6 days 2 years 7 months 6 days
Weighted-average discount rates:    
Operating leases 12.40% 12.20%
Finance leases 13.80% 13.30%
v3.26.1
Leases - Supplemental Balance Sheet (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Long-term right-of-use assets $ 36,882 $ 58,039
Short-term operating lease liabilities 8,475 5,604
Long-term operating lease liabilities 42,279 67,394
Total operating lease liabilities $ 50,754 $ 72,998
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property, plant and equipment, net Property, plant and equipment, net
v3.26.1
Other Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Payables and Accruals [Abstract]    
Accrued compensation $ 31,951 $ 30,705
Accrued manufacturing sub-contractor and contract labor costs 9,601 18,827
Other 26,243 12,289
Total $ 67,795 $ 61,821
v3.26.1
2025 Capital Realignment Transactions - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Dec. 18, 2025
Dec. 31, 2025
Dec. 31, 2025
Dec. 29, 2025
Dec. 31, 2024
Jan. 31, 2022
Subsidiary or Equity Method Investee [Line Items]            
Unamortized debt premium   $ 45,691 $ 45,691   $ 0  
Total contractual debt outstanding   $ 282,917 $ 282,917   425,000  
Pre-Funded Warrant | Common Stock            
Subsidiary or Equity Method Investee [Line Items]            
Exercises of pre-funded warrants (in shares)   4,300,000 4,265,138      
Purchase Warrant            
Subsidiary or Equity Method Investee [Line Items]            
Long-term debt   $ 62,500 $ 62,500      
Registered Offering            
Subsidiary or Equity Method Investee [Line Items]            
Stock sold (in shares) 2,200,000          
Stock sold, aggregate consideration $ 45,600          
Registered Offering | Pre-Funded Warrant            
Subsidiary or Equity Method Investee [Line Items]            
Stock sold (in shares) 8,400,000          
Exercise price (in dollars per share)       $ 0.0001    
Direct Offering | Pre-Funded Warrant            
Subsidiary or Equity Method Investee [Line Items]            
Exercise price (in dollars per share)       $ 0.0001    
2027 Notes            
Subsidiary or Equity Method Investee [Line Items]            
Debt instrument, face amount           $ 425,000
2027 Notes | Prefunded Warrants And Purchase Warrants            
Subsidiary or Equity Method Investee [Line Items]            
Fair value of common stock and warrants   96,400 96,400      
2027 Notes | Convertible Debt            
Subsidiary or Equity Method Investee [Line Items]            
Interest rate, percentage 2.50%         2.50%
Debt instrument, repurchased amount $ 354,600          
Total contractual debt outstanding   70,421 70,421   425,000  
2028 Notes            
Subsidiary or Equity Method Investee [Line Items]            
Unamortized debt premium   $ 45,700 $ 45,700      
2028 Notes | Purchase Warrant            
Subsidiary or Equity Method Investee [Line Items]            
Exercise price (in dollars per share)   $ 6.696 $ 6.696      
Number of shares called by warrants (in shares)   31,700,000 31,700,000      
2028 Notes | 2028 First Lien Notes            
Subsidiary or Equity Method Investee [Line Items]            
Interest rate, percentage   9.80% 9.80%      
Debt instrument, face amount   $ 212,500 $ 212,500      
Total contractual debt outstanding   $ 212,496 $ 212,496   $ 0  
v3.26.1
2025 Capital Realignment Transactions - Schedule of Warrants Option Pricing Model (Details) - Purchase Warrant
 12 Months Ended
Dec. 31, 2025
$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share price (in dollars per share) $ 3.21
Expected life (in years) 5 years
Expected volatility (in percent) 93.00%
Risk free interest rate (in percent) 3.60%
Dividend yield (in percent) 0.00%
v3.26.1
Long-Term Debt - Schedule of Maturities and Mandatory Payments of Long-term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Total contractual debt outstanding $ 282,917 $ 425,000
Unamortized debt premium 45,691 0
Unamortized debt issuance costs (4,416) (4,880)
Total debt 324,192 420,120
Less: current portion of long-term debt 47,830 0
Non-current portion of long-term debt 276,362 420,120
2028 Notes    
Debt Instrument [Line Items]    
Unamortized debt premium 45,700  
2028 Notes | 2028 First Lien Notes    
Debt Instrument [Line Items]    
Total contractual debt outstanding 212,496 0
2027 Notes | Convertible Debt    
Debt Instrument [Line Items]    
Total contractual debt outstanding $ 70,421 $ 425,000
v3.26.1
Long-Term Debt - Narrative (Details)
$ / shares in Units, shares in Millions, $ in Millions
 1 Months Ended
Dec. 31, 2027
USD ($)
Sep. 30, 2026
USD ($)
Jan. 31, 2022
USD ($)
day
$ / shares
shares
Dec. 31, 2025
USD ($)
Dec. 18, 2025
Call Option          
Line of Credit Facility [Line Items]          
Capped call option to purchase common shares (in shares) | shares     1.7    
Call option price per share (in dollars per share) | $ / shares     $ 255.77    
Derivative, cap price (in dollars per share) | $ / shares     $ 401.20    
Premium over share price, percentage     100.00%    
2028 Notes | Forecast          
Line of Credit Facility [Line Items]          
Repayments of debt | $   $ 30.4      
Quarterly debt repayment | $ $ 10.1        
2027 Notes          
Line of Credit Facility [Line Items]          
Debt instrument, face amount | $     $ 425.0    
2028 First Lien Notes | 2028 Notes          
Line of Credit Facility [Line Items]          
Debt instrument, face amount | $       $ 212.5  
Debt instrument, issuance price percentage       100.00%  
Interest rate, percentage       9.80%  
Convertible Debt | 2027 Notes          
Line of Credit Facility [Line Items]          
Interest rate, percentage     2.50%   2.50%
Conversion ratio     0.0039098    
Conversion price (in dollars per share) | $ / shares     $ 255.77    
Threshold trading days     20    
Threshold percentage of stock price trigger     130.00%    
Convertible Debt | 2027 Notes | Debt Conversion Option One          
Line of Credit Facility [Line Items]          
Threshold trading days     20    
Debt instrument, convertible, threshold consecutive trading days     30    
Threshold percentage of stock price trigger     130.00%    
Convertible Debt | 2027 Notes | Debt Conversion Option Two          
Line of Credit Facility [Line Items]          
Threshold trading days     5    
Debt instrument, convertible, threshold consecutive trading days     10    
Threshold percentage of stock price trigger     98.00%    
v3.26.1
Long-Term Debt - Interest Payments (Details) - 2028 First Lien Notes - 2028 Notes - Forecast - USD ($)
$ in Thousands
 12 Months Ended 48 Months Ended
Dec. 31, 2028
Dec. 31, 2027
Dec. 31, 2026
Dec. 31, 2028
Debt Instrument [Line Items]        
Interest expense $ 2,210 $ 2,747 $ 3,394 $ 8,351
Reduction of recorded premium 13,154 15,099 17,438 45,691
Interest payments: $ 15,364 $ 17,846 $ 20,832 $ 54,042
v3.26.1
Long-Term Debt - Schedule of Future Principal Payments of Long-Term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Long-Term Debt, Fiscal Year Maturity [Abstract]    
2026 $ 30,392  
2027 80,552  
2028 171,973  
Total debt $ 282,917 $ 425,000
v3.26.1
Stockholders' Equity - Narrative (Details) - USD ($)
 12 Months Ended 14 Months Ended 18 Months Ended
Dec. 31, 2025
Dec. 31, 2025
Nov. 30, 2024
Dec. 31, 2024
Jun. 30, 2023
Class of Stock [Line Items]          
Shares authorized (in shares) 710,000,000 710,000,000   710,000,000  
Common stock, shares authorized (in shares) 700,000,000 700,000,000   700,000,000  
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001   $ 0.0001  
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000   10,000,000  
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001   $ 0.0001  
Preferred stock, shares outstanding (in shares) 0 0   0  
2023 At The Market Offering Program          
Class of Stock [Line Items]          
Sale of stock offering amount         $ 400,000,000
Stock sold (in shares)     12,800,000    
Stock sold, transaction costs     $ 3,900,000    
Proceeds from sale of common stock     396,200,000    
2024 At The Market Offering Program          
Class of Stock [Line Items]          
Sale of stock offering amount     $ 300,000,000    
Stock sold (in shares) 33,500,000 37,600,000      
Stock sold, transaction costs $ 3,500,000 $ 4,400,000      
Proceeds from sale of common stock $ 121,600,000 $ 150,700,000      
v3.26.1
Stock-Based Compensation - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Dec. 31, 2025
USD ($)
$ / shares
shares
Mar. 31, 2026
shares
Dec. 31, 2025
USD ($)
day
plan
$ / shares
shares
Dec. 31, 2024
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of equity incentive plans | plan     2  
Proceeds from issuance of common stock pursuant to ESPP | $     $ 473 $ 0
Employee Stock Option        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period     4 years  
Share-based payment award, award vesting rights, percentage     25.00%  
Expiration period     10 years  
Unrecognized stock-based compensation expense | $ $ 100   $ 100  
Unrecognized compensation cost, period for recognition     3 months 18 days  
Performance stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expiration period     10 years  
Unrecognized compensation expense | $ 0   $ 0  
Restricted Stock Units (RSUs)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized compensation cost, period for recognition     1 year 10 months 24 days  
Unrecognized compensation expense | $ 20,600   $ 20,600  
Restricted Stock Units (RSUs) | Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period     3 years  
Restricted Stock Units (RSUs) | Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period     4 years  
Liability-Classified Stock Awards        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period       2 years
Performance Shares        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period     3 years  
Consecutive trading days | day     20  
Unrecognized compensation cost, period for recognition     3 months 18 days  
Unrecognized compensation expense | $ $ 300   $ 300  
Performance Shares | Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based payment award, award vesting rights, percentage     25.00%  
Performance Shares | Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based payment award, award vesting rights, percentage     200.00%  
Third A/R Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Additional authorized (in shares)     5,500,000  
Authorized (in shares) 7,670,437   7,670,437  
Amended Inducement Plan | Subsequent Event        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Additional authorized (in shares)   555,000    
Authorized (in shares)   1,695,000    
2019 Stock Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock reserved for issuance (in shares) 2,500,000   2,500,000  
Employee Stock Purchase Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Authorized (in shares) 2,500,000   2,500,000  
Purchase price of the lower of the fair market value     85.00%  
Offering period     6 months  
Shares purchased under ESPP 200,000      
Weighted-average price (in dollars per share) | $ / shares $ 2.40   $ 2.40  
Proceeds from issuance of common stock pursuant to ESPP | $     $ 500  
Shares remained available for issuance under ESPP     2,300,000  
Employee Stock Purchase Plan | Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Eligible compensation, percent     1.00%  
Employee Stock Purchase Plan | Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Eligible compensation, percent     15.00%  
v3.26.1
Stock-Based Compensation - Stock Plan Activity (Details) - Employee Stock Option - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Number of Shares      
Beginning balance (in shares) 126,545 145,649  
Granted (in shares) 0 0  
Exercised (in shares) 0 0  
Forfeited (in shares) (6,511) (19,104)  
Ending balance (in shares) 120,034 126,545 145,649
Exercisable (in shares) 119,403    
Weighted- Average Exercise Price      
Weighted-average exercise price, beginning (in dollars per share) $ 287.43 $ 280.60  
Granted (in dollars per share) 0 0  
Exercised (in dollars per share) 0 0  
Forfeited options (in dollars per share) 239.21 235.80  
Weighted-average exercise price, ending (in dollars per share) 290.05 $ 287.43 $ 280.60
Exercisable (in dollars per share) $ 290.74    
Weighted Average Remaining Contractual Life (in years) and Aggregate Intrinsic Value      
Outstanding, weighted average contractual term 4 years 2 months 12 days 5 years 2 months 12 days 6 years
Exercisable, weighted average contractual term 4 years 2 months 12 days    
Outstanding, aggregate intrinsic value $ 0 $ 0 $ 0
Exercisable, aggregate intrinsic value $ 0    
v3.26.1
Stock-Based Compensation - PSO Activity (Details) - Performance stock options - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Number of Shares      
Beginning balance (in shares) 20,284 20,284  
Granted (in shares) 0 0  
Exercised (in shares) 0 0  
Forfeited (in shares) 0 0  
Ending balance (in shares) 20,284 20,284 20,284
Exercisable (in shares) 0    
Weighted- Average Exercise Price      
Weighted-average exercise price, beginning (in dollars per share) $ 179.80 $ 179.80  
Granted (in dollars per share) 0 0  
Exercised (in dollars per share) 0 0  
Forfeited (in dollars per share) 0 0  
Weighted-average exercise price, ending (in dollars per share) 179.80 $ 179.80 $ 179.80
Exercisable (in dollars per share) $ 0    
Weighted Average Remaining Contractual Life (in years) and Aggregate Intrinsic Value      
Weighted average contractual term 6 years 2 months 12 days 7 years 2 months 12 days 8 years 2 months 12 days
Exercisable, weighted average contractual term 0 years    
Outstanding, aggregate intrinsic value $ 0 $ 0 $ 0
Exercisable, aggregate intrinsic value $ 0    
v3.26.1
Stock-Based Compensation - RSU Activity (Details) - Restricted Stock Units (RSUs) - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Shares    
Outstanding, beginning balance (in shares) 642,501 319,627
Granted (in shares) 5,180,567 578,075
Vested (in shares) (253,542) (152,019)
Forfeited (in shares) (325,153) (103,182)
Outstanding, ending balance (in shares) 5,244,373 642,501
Weighted-Average Grant Date Fair Value    
Outstanding, beginning balance (in dollars per share) $ 40.96 $ 146.60
Granted (in dollars per share) 3.15 21.27
Vested (in dollars per share) 51.18 179.55
Forfeited (in dollars per share) 9.24 56.71
Outstanding, ending balance (in dollars per share) $ 4.99 $ 40.96
v3.26.1
Stock-Based Compensation - Liability-Classified RSUs (Details) - Liability-Classified Stock Awards - shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Outstanding, beginning balance (in shares) 272,626 0
Granted (in shares) 0 272,626
Vested (in shares) (136,312) 0
Forfeited (in shares) 0 0
Outstanding, ending balance (in shares) 136,314 272,626
v3.26.1
Stock-Based Compensation - PSU Activity (Details) - Performance stock units - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Shares    
Outstanding, beginning balance (in shares) 49,176 49,176
Granted (in shares) 0 0
Vested (in shares) 0 0
Forfeited (in shares) (20,506) 0
Outstanding, ending balance (in shares) 28,670 49,176
Weighted-Average Grant Date Fair Value    
Outstanding, beginning balance (in dollars per share) $ 208.40 $ 208.40
Granted (in dollars per share) 0 0
Vested (in dollars per share) 0 0
Forfeited (in dollars per share) 279.98 0
Outstanding, ending balance (in dollars per share) $ 157.20 $ 208.40
v3.26.1
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense $ 18,698 $ 29,752
Less: stock-based compensation expense for liability-classified awards 267 643
Stock-based compensation expense for equity-classified awards 18,431 29,109
Spaceline operations    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense 2,191 4,023
Research and development    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense 1,926 3,817
Selling, general and administrative    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense $ 14,581 $ 21,912
v3.26.1
Employee Benefit Plan (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Retirement Benefits [Abstract]    
Defined contributions $ 5.6 $ 6.3
v3.26.1
Income Taxes - Schedule of Loss Before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Income Tax Disclosure [Abstract]    
United States $ (278,971) $ (346,826)
International 116 160
Loss before income taxes $ (278,855) $ (346,666)
v3.26.1
Income Taxes - Schedule of Income Tax Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Federal    
Current $ 0 $ 0
Deferred 0 0
Total 0 0
State    
Current 7 10
Deferred 0 0
Total 7 10
Foreign    
Current 105 132
Deferred (60) (68)
Total 45 64
Current 112 142
Deferred (60) (68)
Total $ 52 $ 74
v3.26.1
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Net operating losses $ 510,732 $ 447,735
Research and development credits 125,149 82,432
Capitalized research and experimental expenditures 96,515 129,951
Goodwill 170,556 189,132
Book/tax basis difference in debt 25,578 0
Other 31,398 37,488
Total gross deferred tax assets 959,928 886,738
Valuation allowance (950,241) (870,427)
Net deferred tax assets 9,687 16,311
Deferred tax liabilities:    
Operating lease right-of-use assets (9,562) (14,986)
Other (115) (1,375)
Total gross deferred tax liabilities (9,677) (16,361)
Net deferred tax assets (liabilities) $ 10  
Net deferred tax assets (liabilities)   $ (50)
v3.26.1
Income Taxes - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating Loss Carryforwards [Line Items]      
Valuation allowance $ 950,241,000 $ 870,427,000  
Foreign jurisdiction 0 300,000  
Uncertain tax positions 24,128,000 $ 20,607,000 $ 16,351,000
Interest and penalty charges accrued 0    
Domestic      
Operating Loss Carryforwards [Line Items]      
Net operating loss carryforward 2,000,000,000.0    
Domestic | Research and development      
Operating Loss Carryforwards [Line Items]      
Tax credit carryforward 87,500,000    
State      
Operating Loss Carryforwards [Line Items]      
Net operating loss carryforward 1,900,000,000    
State | Research and development      
Operating Loss Carryforwards [Line Items]      
Tax credit carryforward $ 42,000,000.0    
v3.26.1
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Effective Income Tax Rate Reconciliation, Amount [Abstract]    
U.S. federal statutory rate $ (58,560) $ (72,800)
Research and development tax credits (10,607) (14,558)
Change in valuation allowance 64,027 80,104
Other, net 5,192 7,328
Total $ 52 $ 74
Effective Income Tax Rate Reconciliation, Percent [Abstract]    
U.S. federal statutory rate (in percent) 21.00% 21.00%
Research and development (in percent) 3.80% 4.20%
Change in valuation allowance (in percent) (23.00%) (23.10%)
Other, net (in percent) (1.90%) (2.10%)
Total (in percent) 0.00% 0.00%
v3.26.1
Income Taxes - Schedule of Uncertain Tax Positions (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Unrecognized Tax Benefits [Roll Forward]    
Balance at the beginning of the year $ 20,607 $ 16,351
Additions based on tax positions related to current year 3,521 4,256
Balance at the end of year $ 24,128 $ 20,607
v3.26.1
Earnings Per Share - Schedule of Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Basic and diluted:    
Net loss, basic $ (278,907) $ (346,740)
Net loss, diluted $ (278,907) $ (346,740)
Weighted-average common shares outstanding - basic (in shares) 51,242 24,955
Weighted-average common share outstanding - diluted (in shares) 51,242 24,955
Basic net loss per share (in dollars per share) $ (5.44) $ (13.89)
Diluted net loss per share (in dollars per share) $ (5.44) $ (13.89)
v3.26.1
Earnings Per Share - Narrative (Details) - Registered Offering - $ / shares
Dec. 18, 2025
Dec. 31, 2025
Dec. 29, 2025
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Stock sold (in shares) 2,200,000    
Pre-Funded Warrant      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Stock sold (in shares) 8,400,000    
Exercise price (in dollars per share)     $ 0.0001
Warrants purchased (in shares)   4,100,000  
v3.26.1
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Loss Per Share (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential effect of warrants to purchase stock (in shares) 5,688 2,501
Stock options issued and outstanding    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential effect of warrants to purchase stock (in shares) 120 127
Performance stock options issued and outstanding    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential effect of warrants to purchase stock (in shares) 20 20
Unvested equity - classified restricted stock units issued and outstanding    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential effect of warrants to purchase stock (in shares) 5,244 643
Unvested performance stock units issued and outstanding    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential effect of warrants to purchase stock (in shares) 29 49
Shares related to the 2027 Notes (if-converted)    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential effect of warrants to purchase stock (in shares) 275 1,662
v3.26.1
Fair Value Measurements (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets at fair value $ 338,028 $ 656,786
Total liabilities at fair value 230,776 186,252
Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets at fair value 330,341 648,554
2027 Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities: 57,592 186,252
2028 Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities: 173,184  
U.S. treasuries    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities, Fair Value 9,898 34,731
U.S. treasuries | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities, Fair Value 9,898 34,731
Corporate bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities, Fair Value 152,415 411,170
Corporate bonds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities, Fair Value 152,415 411,170
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total liabilities at fair value 0 0
Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets at fair value 177,926 237,384
Level 1 | 2027 Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities: 0 0
Level 1 | 2028 Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities: 0  
Level 1 | U.S. treasuries | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities, Fair Value 9,898 34,731
Level 1 | Corporate bonds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities, Fair Value 0 0
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total liabilities at fair value 230,776 186,252
Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets at fair value 152,415 411,170
Level 2 | 2027 Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities: 57,592 186,252
Level 2 | 2028 Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities: 173,184  
Level 2 | U.S. treasuries | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities, Fair Value 0 0
Level 2 | Corporate bonds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities, Fair Value 152,415 411,170
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total liabilities at fair value 0 0
Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets at fair value 0 0
Level 3 | 2027 Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities: 0 0
Level 3 | 2028 Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities: 0  
Level 3 | U.S. treasuries | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities, Fair Value 0 0
Level 3 | Corporate bonds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities, Fair Value 0 0
Money market    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents, fair value 168,028 202,653
Money market | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents, fair value 168,028 202,653
Money market | Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents, fair value 168,028 202,653
Money market | Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents, fair value 0 0
Money market | Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents, fair value $ 0 $ 0
v3.26.1
Commitments and Contingencies - Narrative (Details)
$ in Thousands
 12 Months Ended 29 Months Ended
Jul. 18, 2025
USD ($)
Mar. 21, 2024
USD ($)
Dec. 31, 2025
USD ($)
Jul. 11, 2024
allegedShareholder
The Boeing Company and Aurora Flight Sciences Corporation v. the Company        
Operating Leased Assets [Line Items]        
Loss contingency, amount of damages sought   $ 25,000    
Lavin Action        
Operating Leased Assets [Line Items]        
Loss from litigation settlement, net     $ 2,250  
Amount awarded to other party $ 8,500      
Litigation settlement covered by insurance claim $ 6,250      
Spiteri, Grenier, Laidlaw, and St. Jean        
Operating Leased Assets [Line Items]        
Number of alleged shareholders that filed a complaint | allegedShareholder       5
Minimum        
Operating Leased Assets [Line Items]        
Operating lease, renewal term     3 years  
Maximum        
Operating Leased Assets [Line Items]        
Operating lease, renewal term     20 years  
v3.26.1
Commitments and Contingencies - Lease Maturities (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Operating Leases  
2026 $ 14,191
2027 13,951
2028 9,790
2029 7,265
2030 7,152
Thereafter 24,799
Total payments 77,148
Less: present value discount/imputed interest 26,394
Present value of lease liabilities $ 50,754
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] Liabilities
Finance Leases  
2026 $ 230
2027 115
2028 50
2029 15
2030 2
Thereafter 0
Total payments 412
Less: present value discount/imputed interest 54
Present value of lease liabilities $ 358
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] Liabilities
v3.26.1
Related Party Transactions (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Affiliated Entity    
Related Party Transaction [Line Items]    
Royalty expense $ 2.5 $ 1.5
v3.26.1
Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Cash payments for:    
Interest $ 8,686 $ 10,625
Supplemental disclosure of non-cash investing and financing activities:    
Unpaid purchases of property, plant and equipment 8,346 11,054
Issuance of common stock through RSUs vested $ 641 $ 2,346