SpaceX, the Texas-based aerospace company led by Elon Musk, reported a $541 million loss in its first quarterly earnings report since becoming a publicly traded company, for the three months ended June 30, 2026. While the loss was significant, it came in below predictions that the company would lose more than twice that amount, providing some relief to investors who had been bracing for worse.
The company’s revenue nearly doubled over the same period last year, surging 90% to $7.8 billion. The standout performer was SpaceX’s connectivity business, which saw a 66% year-over-year revenue increase as Starlink subscribers doubled to 12 million. The satellite internet service has emerged as a key growth driver for the company, with Musk expressing ambitious projections for its future. “It’s not out of the question that at some point, Starlink will deliver a majority of the world’s internet,” Musk told analysts during the earnings call.
SpaceX’s spending on infrastructure and research and development surged more than 500% over the past year, going from less than $3 billion to $18 billion. Chief Financial Officer Bret Johnsen said those levels of investment are expected to continue over the next two quarters. Musk assured investors that the current spending will allow SpaceX to reach $1 trillion in annual revenue by 2030, a year earlier than previously projected. The massive capital expenditure reflects the company’s simultaneous development of the Starship program, expansion of the Starlink constellation, and scaling of launch operations.
The earnings report is significant for the Houston business community, where the aerospace sector plays an important role in the regional economy. SpaceX operates its Starbase facility in Boca Chica, Texas, and has growing operations across the state. The company’s continued investment in Texas infrastructure has implications for employment, supply chains, and economic development across the Houston aerospace corridor. The Johnson Space Center in Houston maintains close ties with SpaceX through NASA contracts and commercial crew missions.
Musk also provided an update on the company’s Starship program, saying SpaceX plans to test catching the spacecraft and its booster with mechanical arms upon their return to the base later this month. Starship successfully deployed satellites in a test last month, marking a critical milestone in the program’s development. NASA is eyeing the spacecraft for upcoming lunar missions, with SpaceX President Gwynne Shotwell telling investors the company aims to put boots on the moon by 2028.
Despite the quarterly loss, SpaceX’s public debut has been closely watched as a barometer for investor appetite in the space economy. The company’s stock rose 9% during the trading session before the earnings release but gave back much of that gain in after-hours trading. The results signal that while SpaceX’s growth trajectory remains strong, the path to profitability will depend on the company’s ability to manage its enormous capital expenditure program while scaling revenue from Starlink and launch services.
