NEW YORK—SpaceX reported its first quarterly loss as a publicly traded company, posting a net loss of $541 million for the second quarter as heavy spending on artificial intelligence infrastructure overshadowed stronger-than-expected revenue growth and sent its shares sharply lower in after-hours trading.
The company said quarterly revenue rose to $7.8 billion, exceeding analysts' expectations, driven by continued expansion of its Starlink satellite internet business and growth across its launch operations. However, investors focused on the scale of capital expenditure tied to the company's AI initiatives, which management said remained central to its long-term strategy.
SpaceX disclosed that AI-related capital spending reached nearly $16 billion during the quarter, well above many analysts' forecasts. Chief Executive Elon Musk said the investments support the company's long-term plans to expand AI computing capacity and develop space-based infrastructure, while Chief Financial Officer Bret Johnsen said the company expects those investments to generate attractive returns over time.
Despite the revenue beat, the earnings release marked the company's first quarterly report since its June initial public offering, a closely watched test of investor confidence following one of the largest stock market debuts in U.S. history. Shares fell in extended trading after the results as investors questioned whether Starlink's profitability could continue to support the company's aggressive spending plans.
Starlink remained SpaceX's strongest operating business during the quarter, with enterprise and government demand continuing to expand, helping offset losses elsewhere in the company. Analysts said the satellite internet unit remains the principal source of cash flow supporting broader investments in AI and launch technology.
The earnings report also came ahead of the first expiration of post-IPO lock-up restrictions, an event expected to increase the number of shares available for trading. Market participants have warned that additional selling by insiders and early investors could contribute to continued share-price volatility.
Retail investors nevertheless continued buying the stock following the post-earnings decline, according to data from Vanda Research cited by Reuters, suggesting some individual traders viewed the selloff as a buying opportunity despite concerns over near-term profitability and elevated capital spending.
SpaceX said it remains committed to its long-term investment strategy and did not announce changes to its capital spending plans. Investors are expected to closely monitor future quarterly results for signs that revenue growth and cash generation can keep pace with the company's AI investment program.
