SpaceX turns a profit as investment spending exceeds revenue
SpaceX reported third-quarter net income of 4.404 billion dollars as revenue reached 14.575 billion dollars. Capital spending climbed to 19.593 billion dollars, mainly in its artificial intelligence business. Connectivity income also increased, with Starlink consumer subscribers reaching 13.6 million. The results combine rapidly expanding computing revenue with much larger investment outlays.
Economics & Markets··Morning
Quarterly revenue increases
SpaceX, the rocket, satellite communications and artificial intelligence company, reported higher third-quarter revenue in its October 20 results.[1], [2]
Revenue reached 14.575 billion dollars, up from 5.576 billion dollars a year earlier. Net income was 4.404 billion dollars, compared with a loss of approximately 1.1 billion dollars. Operating income reached 2.791 billion dollars after an operating loss of 273 million dollars a year earlier. The unaudited quarterly accounts included a tax benefit of 390 million dollars, interest income of 873 million dollars and other net income of 1.025 billion dollars.[1]
AI revenue expands with cloud agreements
Super Intelligence, SpaceX’s artificial intelligence business, increased revenue from 813 million dollars to 7.560 billion dollars. Management attributed that growth to new cloud services agreements, the Cursor acquisition and greater Grok adoption. The segment reported operating income of 431 million dollars, including approximately 1.2 billion dollars in share-based compensation associated with Cursor. The purchase completed on August 14; Cursor contributed 608 million dollars of consolidated revenue through September end.[1]
Capital expenditure rose from 6.880 billion dollars to 19.593 billion dollars, of which 16.444 billion dollars was in Super Intelligence. First-nine-month capital expenditure totaled 48.069 billion dollars. Separately, connectivity revenue rose 69 per cent to 5.248 billion dollars and operating income reached 2.367 billion dollars. Starlink, the satellite internet service, ended September with 13.6 million consumer subscribers after adding 1.6 million during the quarter. Space segment revenue was 1.767 billion dollars, with an operating loss of 7 million dollars.[1]
