Can Virgin Galactic Come Back From the Dead? (Or Is This Stock Just Dead Money?)

Virgin Galactic, the space tourism company founded by Sir Richard Branson, is on the verge of returning to space tourism operations. After a 29-month hiatus, the company has announced that the first of a new fleet of Delta-class spaceplanes is ready for assembly and testing, with the aim to resume commercial operations by Q2 2027. Three months later, a second Delta-class spaceplane will join the first in operation.

To make Virgin Galactic profitable, it needs to generate positive quarterly free cash flow at least once in 2027. As of Q3 2026, the company reported $50 million in negative operating cash flow, which has increased to $91 million in total cash burn. To cover this cost, Virgin needs to put 121 paying customers into orbit per quarter, with each flight accommodating six passengers. This translates to about one and a half flights per week, assuming the company can achieve two flights per week.

Virgin Galactic has already pre-sold about 700 seats on the spaceplanes, with prices now reaching a record high of $750,000 per ticket. While this demonstrates strong demand, it also highlights the financial challenges the company faces. It will take time to cover the costs associated with flying these tourists, as passengers who paid lower prices will first need to be accommodated.

Moreover, space tourism is a complex and challenging industry, and there are no guarantees that Virgin Galactic will be able to achieve its goals. Until then, the stock could remain "dead money" until the company resumes profitable operations.