01—Abstract
Summary
Summary of the 10-Q filed October 22, 2026. Cited figures are marked; the original filing is the authoritative source.
Space Exploration Technologies Corp. (SpaceX) has reported a strong financial performance for the nine months ended September 30, 2026, driven by significant revenue growth across all its segments, particularly SI and Connectivity.
The company's total revenue more than doubled year-over-year, reaching $27.1 billiona. This growth is attributed to the successful integration of Cursor, expansion of Starlink services, and robust performance in SI solutions and infrastructure. Despite substantial investments in R&D, especially for Starship development and SI infrastructure, SpaceX has demonstrated improved profitability.
The company shifted from a net loss of $2.6 billionb in the prior year period to a net loss of $413 million for the nine months ended September 30, 2026, with a particularly strong quarter showing a net income of $4.4 billion. This improvement is bolstered by significant cash flow from operations and strategic financing activities, including a substantial IPO and the issuance of new notes, which has bolstered its cash position to over $53 billion.
02—Key points
Key Highlights
- Revenue surged by 97.5% year-over-year for the nine months ended September 30, 2026, reaching $27.1 billion, driven by strong performance in the SI and Connectivity segments.
- The company achieved profitability in the third quarter of 2026 with a net income of $4.4 billion, a significant turnaround from prior periods of net losses.
- The acquisition of Cursor for $42.5 billion, completed in August 2026, has significantly boosted the SI segment's revenue and goodwill, reflecting a strategic push into AI infrastructure.
- Starlink consumer subscribers grew to 13.6 million as of September 30, 2026, while ARPU saw a decrease, indicating expansion into new markets with lower pricing tiers.
- SpaceX raised substantial capital through its IPO in June 2026, generating $85.7 billion in net proceeds, and issued $25 billion in SpaceX Notes, significantly strengthening its liquidity position to $53.4 billion in cash and cash equivalents.
- Investments in Property, Plant, and Equipment more than doubled year-over-year, reaching $48.1 billion for the nine months ended September 30, 2026, primarily due to data center build-outs for the SI segment and continued investment in space launch facilities.
- The Space segment experienced a slight revenue increase but saw operating losses widen due to increased R&D investment in Starship development.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, SpaceX kept $0.30.
- Revenue$14.57B100.0%
- Cost of revenue−$5.48B37.6%
- Gross profit$9.10B62.4%
- Operating costs−$6.31B43.3%
- Operating income$2.79B19.1%
- Interest, other & tax$1.61B11.1%
- Net income$4.40B30.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 22, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $14.57B$5.58B | +161.4% |
| Cost of Revenue | $5.48B$2.71B | +102.5% |
| Gross Profit | $9.10B$2.87B | +216.9% |
| R&D Expenses | $4.60B$2.29B | +100.6% |
| SG&A Expenses | $1.71B$575.00M | +196.9% |
| Operating Expenses | $11.78B$5.85B | +101.5% |
| Operating Income | $2.79B-$273.00M | +1122.3% |
| Net Income | $4.40B-$1.05B | +517.8% |
| EPS (Basic) | $0.37$-0.36 | +202.8% |
| EPS (Diluted) | $0.35$-0.36 | +197.2% |
| Shares Outstanding (Basic) | 11.94B2.94B | +306.1% |
| Shares Outstanding (Diluted) | 12.47B2.94B | +324.2% |
05—Questions
Frequently Asked Questions
What are the key drivers of SpaceX's revenue growth in the current period?
SpaceX's revenue growth is primarily driven by its SI segment, fueled by new SI infrastructure contracts, cloud services, and the recent acquisition of Cursor. The Connectivity segment also contributes significantly, with continued growth in Starlink consumer subscribers and enterprise/government customers. The Space segment shows modest growth, mainly from favorable customer mix in launch services.
How has the acquisition of Cursor impacted SpaceX's financial performance?
The acquisition of Cursor, completed in August 2026 for $42.5 billion, has significantly boosted SpaceX's SI segment revenue and resulted in $36.6 billion of goodwill. It is a key factor in the substantial revenue increase reported for the SI segment and the overall company.
What is SpaceX's current liquidity position and how is it managing its cash?
SpaceX maintains a strong liquidity position, with over $53 billion in cash and cash equivalents as of September 30, 2026. This is largely due to the proceeds from its IPO ($85.7 billion) and the issuance of SpaceX Notes ($25 billion). The company is actively investing this cash, with significant capital expenditures in SI infrastructure and space development, while also generating substantial cash flow from operations.
What is the outlook for SpaceX's profitability given the significant investments?
While SpaceX is making substantial investments in R&D and infrastructure, it has demonstrated a positive trend towards profitability. The company achieved net income in the third quarter of 2026 and significantly reduced its net loss for the nine-month period compared to the previous year. Continued revenue growth across segments, coupled with operational efficiencies, suggests a positive trajectory for overall profitability.
06—Continue