SpaceX Shares Climb As Q3 Turns To Profit On Connectivity, SI Strength

(RTTNews) - Shares of Space Exploration Technologies Corp. or SpaceX (SPCX) were gaining around 9% in the overnight activity on the Nasdaq after Elon Musk's spaceflight company reported a significant profit in its third quarter, compared to prior year's loss, as revenues were boosted mainly by Connectivity as well as Super Intelligence or SI operations.

CFO stated, "The combination of our launch leadership, recurring Starlink revenue, and the significant expansion of our SI infrastructure continues to drive meaningful operating leverage. We are building the infrastructure of the future with discipline — focused on capital efficiency, strong returns on invested capital, and maintaining a robust, investment-grade balance sheet..."

In the third quarter, net income was $4.40 billion, an improvement of $5.5 billion from prior year's net loss of $1.05 billion. Earnings per share were $0.35, compared to loss of $0.36 last year.

Income from operations was $2.79 billion, compared to loss of $273 million a year earlier. Space recorded a loss of $7 million, compared to prior year's profit of $259 million.

However, Connectivity's income nearly doubled to $2.367 billion. SI recorded a profit, compared to a hefty loss last year.

Adjusted EBITDA of $8.81 billion surged 306 percent from $2.17 billion a year ago.

Revenues grew 161 percent to $14.58 billion from $5.58 billion last year, fueled by Super Intelligence segment and accelerated growth in Connectivity.

In the Connectivity segment, revenue grew 69 percent from last year to $5.248 billion, and income from operations climbed 99 percent, supported by strong momentum in enterprise and government adoption, and continued Starlink consumer subscriber growth.

The company said it added $6.7 billion of incremental SI solutions and infrastructure revenue compared to last year, driven by cloud services agreements, the acquisition of Cursor, as well as growing SI models and software applications, including Grok Bot.

SpaceX noted that it successfully launched first revenue-generating Starship mission, delivering 26 Starlink V3 satellites to its broadband constellation.

In the quarter, total launches declined to 35 from last year's 44, with drop in both customer and internal launches.

In the overnight activity on the Nasdaq, the shares were trading at $161.32, up 9.15 percent.

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