1Q: Demand Accelerates for $750K Tickets to Space, Preparing for Launch Ahead

Research evidence excerpt

1Q: Demand Accelerates for $750K Tickets to Space, Preparing for Launch Ahead

Retailing/Specialty Stores: Luxury Brands

Virgin Galactic Holdings

TD SECURITIES (USA) LLC EARNINGS UPDATE

May 15, 2026

Price: $2.88 (05/14/2026) 1Q: Demand Accelerates for $750K Tickets to

Price Target: $4.50 Space, Preparing for Launch Ahead

BUY (1)

ESG SCORE: 55/100

Oliver Chen, CFA THE TD COWEN INSIGHT

646 562 1424

Pricing Power Takes Off With a Clearer Path to Positive Free Cash Flow In FY27. Most

oliver.chen@tdsecurities.com

incremental from 1Q, in our view: (1) first ~650 passengers to be recognized at ~$200–250K

Julia Shelanski through the initial ramp; (2) ~$750K tranche largely sold out with higher pricing ahead; (3)

646 562 1459 regulatory derisking following acceptance of the Federal Aviation Administration (FAA) Part

julia.shelanski@tdsecurities.com

450 license application.

Jonna Kim, CFA

646 562 1419 We left the call with improved visibility into the path to a 4Q26 commercial launch, supported

jonna.kim@tdsecurities.com by near-term milestones (Unity glide flights in May; Delta ground testing in June) and, in

Gabriella Garr our view, a clearer runway to positive quarterly cash flow in FY27. Importantly, we are

646 562 1356 encouraged by derisking across several key areas in the quarter including: (1) acceptance of

gabriella.garr@tdsecurities.com the Federal Aviation Administration (FAA) Part 450 license application; (2) improved visibility

into initial flight economics, including revenue recognition at ~$200K–$250K for the first ~650

Key Data

passengers in the pipeline, with positive contribution margin even at legacy pricing; (3) strong

Symbol NYSE: SPCE

demand validation, with the ~$750K tranche largely sold out and the next tranche expected

Beta: 2.17