SpaceX nearly doubled its quarterly revenue as strong growth in Starlink and its artificial intelligence business boosted earnings, although the company signaled that heavy investment will continue as it expands its long term ambitions.
SpaceX reported $7.8 billion in revenue for the quarter ended June 30, up from $4.1 billion a year earlier and above analysts’ expectations. The company said it expects to reach a $100 billion annual revenue run rate by the end of the year.
Starlink remained SpaceX’s largest revenue source, accounting for more than half of total sales with revenue rising 66%, while AI related revenue jumped about 250%. Total operating losses narrowed to $143 million, compared with $970 million a year earlier.
Despite the strong results, capital spending surged to more than $18 billion, largely driven by AI infrastructure and data center expansion. Chief Financial Officer Bret Johnsen said investment levels are expected to remain high over the coming quarters.
Key highlights include:
- Revenue rose to $7.8 billion, nearly double last year’s figure.
- Starlink subscribers increased to 12 million worldwide.
- AI revenue grew about 250%.
- SpaceX plans to build nearly 10 gigawatts of AI computing capacity by the end of next year.
- At least 1,000 next generation Starlink V3 satellites are expected to be launched within a year.
CEO Elon Musk said the company is rapidly expanding its AI computing capabilities and expects new capital investments to pay back in less than a year. President Gwynne Shotwell also said Starlink aims to compete directly with major U.S. mobile operators by expanding satellite based mobile services.
Although investors welcomed the strong revenue growth, SpaceX shares fell 7.5% in after hours trading as concerns persisted over the company’s heavy spending and the approaching expiration of its post IPO lock up period.
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