SpaceX turns a profit after a string of losses as its satellite and computer leasing businesses soar
SpaceX reported a bigger quarterly profit than expected Tuesday as its satellite communications operations and its business of leasing computing power to other companies boomed.
SpaceX announced a significant turn in its financial fortunes on Tuesday, reporting a larger-than-expected quarterly profit of $4.4 billion, or 35 cents per share. This substantial profit, almost double what analysts anticipated, marks a stark contrast to the company's string of losses over the past year. The results for the period ending September were well above expectations, with revenue reaching $14.6 billion, marking a 161% increase.
The surge in profitability is primarily attributed to SpaceX's satellite communications operations and its burgeoning business of leasing computing power to other entities. However, the company's capital expenditures for the quarter totaled $19.6 billion, nearly tripling the amount from the previous year. This heavy investment in major projects has raised concerns among investors about the company's spending habits, particularly in comparison to rival companies like OpenAI and Anthropic.
Despite these worries, the company's financial performance has turned the tide, signaling a shift from years of losses to a profitable trajectory.
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