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    SPCX
    Earnings call· Jun 2026(Q2 FY26)

    SPACE EXPLORATION TECHNOLOGIES Q2 FY26 earnings call SPCX

    Aug 4, 2026 Source

    Executive summary

    SpaceX Q2 FY26 — Record Starlink Subscriber Growth and Accelerating AI Compute Expansion

    SpaceX delivered an exceptional quarter, showcasing robust growth across all its segments driven by strong operational execution and strategic investments. The company continues to advance its ambitious Starship program towards full reusability, while Starlink expands its global reach and prepares for a significant upgrade with V3 satellites. Rapid scaling of AI compute capacity and the development of Grok models further underscore the company's multi-faceted growth trajectory and long-term vision.

    Highlights

    6

    • Total revenue increased 92% year-over-year to $7.8 billion.

    • Adjusted EBITDA grew 191% year-over-year to $3.5 billion.

    • Net loss improved by $467 million compared to the prior-year quarter.

    • Starlink added over 1.7 million net subscribers globally, marking its best quarter for new customers.

    • AI segment revenue surged 247% year-over-year to $2.6 billion and turned adjusted EBITDA positive at $1.1 billion.

    • Ended the quarter with a strong balance sheet, including $100 billion in cash, cash equivalents, and marketable securities.

    Concerns

    3

    • Blended ARPU decline due to geographic expansion

    • Regulatory hurdles for Cursor acquisition

    • Supply-demand imbalance in compute market (memory)

    Guidance & targets

    10
    CategoryTargetConfidence
    AI Compute Capacity
    over 2 gigawatts
    high materiality
    High
    Cumulative AI Compute Online
    closer to 10 gigawatts of compute than 5 gigawatts of compute
    high materiality
    Medium
    Annualized Revenue Run Rate (ARR)
    $100 billion of ARR
    high materiality
    High
    Total Revenue
    $1 trillion
    high materiality
    High
    Starship Flight Cadence
    at least 1 flight a day, possibly more
    high materiality
    Medium
    Starlink Mobile Service Launch
    start providing service
    high materiality
    High
    Starship Human-Rated Reliability
    achieve a level of safety needed for humans
    high materiality
    Medium
    Artemis III Mission
    dock with the Orion spacecraft
    high materiality
    High
    Boots on the Moon
    put boots on the moon
    high materiality
    Medium
    Starlink V3 Satellite Critical Mass
    approximately second quarter next year
    medium materiality
    Medium

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Space
    Revenue growth driven by a higher number of larger customer launches and a favorable customer mix. Adjusted EBITDA loss primarily reflects higher R&D expenses for the Starship program.
    		$962 million29%55%($205 million) adjusted EBITDA loss
    Connectivity
    Growth driven by record net additions of Starlink subscribers and a sharp increase in enterprise and government revenue. Income from operations increased 79% year-over-year, driving nearly 3 points of operating margin expansion. Adjusted EBITDA rose 64% year-over-year to $2.6 billion.
    Starlink subscriber ARPU: $66 per month
    		$4.3 billion66%32%$1.7 billion income from operations
    AI
    Increase driven primarily by new cloud services agreements ($1.6 billion incremental AI infrastructure revenue) and growth in Grok and X subscription revenue. Advertising revenue grew 7% sequentially. Segment turned adjusted EBITDA positive.
    		$2.6 billion247%213%$1.1 billion adjusted EBITDA

    Operational metrics

    33
    Total revenue growth
    92%YoY
    Q2 FY26

    Total revenue for the second quarter was $7.8 billion, up from $4.1 billion in the prior-year quarter.

    Adjusted EBITDA
    $3.5 billionup 191%
    Q2 FY26

    Adjusted EBITDA for the second quarter, up from $1.2 billion in the prior-year quarter.

    Net loss improvement
    $467 millionimprovement
    Q2 FY26

    Quarterly net loss of $541 million, an improvement of $467 million compared to the prior-year quarter.

    Starlink service availability
    167
    Q2 FY26

    Number of markets where Starlink service is available as of June 30.

    Operational Starlink satellites
    10,200
    Q2 FY26

    Total constellation of operational Starlink broadband and mobile satellites in orbit as of June 30.

    Broadband satellites
    9,600
    Q2 FY26

    Number of broadband satellites within the operational Starlink constellation.

    Total downlink capacity
    800 terabits per second
    Q2 FY26

    Total downlink capacity delivered by the 9,600 broadband satellites.

    Connectivity Enterprise & Government revenue growth
    108%YoY
    Q2 FY26

    Growth rate for Enterprise & Government revenue within the Connectivity segment.

    US government contracts awarded
    $6 billion
    Q2 FY26

    Value of U.S. government contracts won in Q2, supporting Space Force programs.

    Grok 4.5 token consumption growth
    tripledout of the gate
    Q2 FY26

    Token consumption for Grok 4.5 after its July release.

    Compute capacity
    1.4 gigawattsup from 1 gigawatt in Q1 and 400 megawatts a year earlier
    Q2 FY26

    Nameplate compute capacity at the end of the second quarter.

    Total capital expenditures
    $18.4 billion
    Q2 FY26

    Total capital expenditures in the second quarter. The remainder funded ongoing Starship and launch infrastructure, satellite production, and global ground station expansion.

    Spectrum credit agreement payout
    $856 million
    Q2 FY26

    Amount paid during the quarter under the spectrum credit agreement related to the pending EchoStar transaction.

    IPO net proceeds
    $85.7 billion
    Q2 FY26

    Net proceeds raised from the initial public offering.

    Investment-grade senior notes offering
    $25 billion
    Q2 FY26

    Inaugural investment-grade senior notes offering, partially used to repay a bridge loan.

    Bridge loan repayment
    $20 billion
    Q2 FY26

    Amount of bridge loan repaid using proceeds from the senior notes offering.

    Cash, cash equivalents and marketable securities
    $100 billion
    Q2 FY26

    Balance at the end of the second quarter.

    Backlog
    $47.5 billion
    Q2 FY26

    Total backlog at the end of the second quarter.

    Cloud services revenue contracted
    $6.7 billion
    Q3 FY26

    Additional cloud services revenue contracted in the first few weeks of Q3.

    Compute capital deployment payback period
    <1 year
    Q2 FY26

    Payback period on new capital deployments for compute.

    Falcon tonnage to orbit
    2,500 tons
    annual

    Roughly the amount of mass delivered to orbit annually via Falcon rockets.

    Rest of world tonnage to orbit
    300 tons
    annual

    Roughly the amount of mass delivered to orbit annually by the rest of the world.

    Starship tonnage to orbit aspiration
    >1 million tons/yearultimately 10 million tons/year
    future

    Aspiration for Starship's annual mass delivery to orbit.

    Starlink V3 capability improvement
    order of magnitude more capablethan V2
    future

    Expected improvement in capability for Starlink V3 satellites compared to V2.

    Starlink V3 launch quantity increase
    order of magnitude morethan V2
    future

    Expected increase in the number of Starlink V3 satellites to be launched compared to V2.

    Starlink bandwidth increase
    2 order of magnitude increase
    future

    Expected increase in delivered bandwidth from Starlink due to V3 satellites.

    Starlink mobile bandwidth (current)
    5 megahertz
    current

    Current bandwidth used by the Starlink mobile system through local telco providers.

    Starlink mobile bandwidth (EchoStar)
    65 megahertz
    future

    Bandwidth available through the EchoStar spectrum for Starlink mobile.

    Starlink mobile capability improvement
    100x better
    future

    Expected improvement in Starlink mobile capability leveraging next-generation satellites and EchoStar spectrum.

    Grok training compute usage
    10%
    future

    Expected percentage of internal compute used for Grok training, decreasing over time.

    Memory output annual growth
    20%
    annual

    Annual growth rate of memory output.

    Memory demand annual growth
    200%
    annual

    Annual growth rate of memory demand.

    Starship heat shield status
    solved
    Q2 FY26

    Management considers the heat shield problem for Starship solved based on Flight 13 data and visual inspection.

    Industry KPIs

    2
    MetricValueDetails
    Postpaid arpa vs ARPU$66per month
    Broadband fwa net adds split1.7 millionsubscribers

    Product announcements

    7
    ProductTypeDetails
    Grok 4.5launch
    Grok 4.6launch
    Grok 4.7launch
    Grok 5roadmap
    Starmind AI satellitelaunch
    Starlink mobile partnershipsexpansion
    EchoStar spectrum transfermilestone

    Deals & partnerships

    7
    American AirlinesMajor agreement for Starlink service.

    Signed a major agreement for Starlink service.

    Southwest, Virgin Atlantic, Iberia, Aer LingusNew partnerships for Starlink service.

    Activated Starlink service with new airline partners.

    SoftBank, NTT Docomo, Spark New ZealandStarlink mobile partnerships with international carriers.

    Launched new Starlink mobile partnerships.

    Google and AnthropicCloud services agreements for compute capacity.

    Entered into cloud services agreements providing access to compute capacity at Colossus and Colossus II sites.

    NVIDIAClose cooperation and partnership on AI computing architecture.

    Decided to build exclusively on NVIDIA's Vera Rubin architecture, greatly valuing the cooperation.

    EchoStarSpectrum credit agreement related to pending transaction.

    Pending transaction involving spectrum transfer, recently approved by the FCC.

    CursorAcquisition of Cursor team to integrate engineering and sales capabilities.

    Acquisition expected to close soon, with almost all regulatory hurdles cleared.

    Risks & headwinds

    3
    Blended ARPU decline due to geographic expansionover time

    directional

    Mitigation: Anticipate continued subscriber momentum to deliver strong revenue growth.

    Regulatory hurdles for Cursor acquisitionnear-term

    directional

    Mitigation: Almost all regulatory hurdles are through, expecting to close quite soon.

    Supply-demand imbalance in compute market (memory)ongoing

    Memory output increasing by ~20% per year, demand increasing by ~200% per year.

    Mitigation: SpaceX's efficiency of compute deployment is highest, and intelligence per watt is increasing rapidly.

    What to watch in Q3 FY26

    5

    Starship Flight Cadence

    next flight (end of month), within a year
    Current2 successful V3 flights in 90 days
    TargetIncreased flight frequency, attempt to catch ship with tower

    Why it matters

    Increased flight cadence and successful reusability are critical for Starship's operationalization and long-term vision of mass to orbit.

    we'll attempt to catch the ship with the tower on the next flight which is tentatively scheduled for the end of this month. We expect the cadence of flights to be increasing rapidly. And probably a year from now, we will be doing at least 1 flight a day, possibly more.

    Q&A highlights

    7

    Can you discuss the backlog of enterprise and government contracts in the Connectivity segment, how it converts to revenue, and its impact on future growth?

    Management is bullish on enterprise activities, citing over $6 billion in Q2 government contracts as tranches for future capability. Enterprise revenue is sticky, with no lost customers. Significant headroom exists in aviation (less than 10% penetrated) and maritime, where Starlink expands the TAM. Elon added that demonstrating high reliability is key for enterprise customers to view Starlink as a primary provider, expecting enterprise revenue to substantially exceed consumer revenue.

    “I would expect enterprise revenue to substantially exceed consumer revenue.”

    asked by Eric Sheridan · answered by Elon Musk

    2 min read5 chapters

    Detailed Narrative

    01

    Starship Development and Reusability Milestones

    SpaceX completed two successful flights of Starship V3 in the past 90 days, with Flight 13 demonstrating core orbital capabilities and Flight 14 planned for the first deployment of V3 Starlink satellites. The company aims to achieve full reusability by catching both stages this year and potentially the ship as soon as the next flight. Management emphasized the profound impact of Starship, aspiring to deliver over 1 million tons to orbit per year, a significant leap from the current 2,500 tons/year via Falcon.

    02

    Starlink Expansion and V3 Satellite Capabilities

    Starlink achieved record net additions of over 1.7 million subscribers in Q2, reaching 167 markets globally. The upcoming V3 Starlink satellites are expected to be an order of magnitude more capable than V2, with plans to launch 10 times as many, leading to a roughly two-order-of-magnitude increase in delivered bandwidth. This expansion is projected to enable Starlink to service a majority of global internet traffic within 10 years, especially with the growing demand from AI and robotics.

    03

    AI Compute Infrastructure and Grok Progress

    SpaceX is rapidly expanding its AI compute capacity, ending Q2 with 1.4 gigawatts (GW) of nameplate compute, up from 1 GW in Q1, and targeting over 2 GW by year-end. The company plans to build exclusively on NVIDIA's Vera Rubin architecture, valuing the partnership. Grok 4.5 saw positive enterprise feedback and tripled token consumption, with Grok 4.6 and 4.7 releases imminent, and Grok 5 (incorporating all SpaceX data) expected by year-end. The Starmind AI satellite, an optimized NVL72 computer, is slated for launch next year.

    04

    Capital Allocation and Financial Strength

    The company demonstrated strong Q2 financial results with accelerated revenue growth across all segments and a significant improvement in net loss. SpaceX completed its IPO, raising $85.7 billion, and an inaugural $25 billion investment-grade senior notes offering, strengthening its balance sheet to $100 billion in cash and marketable securities. Capital allocation priorities remain focused on Starship, next-gen Starlink, and AI compute infrastructure, with new compute deployments achieving a payback period of less than one year.

    05

    Enterprise and Government Growth Opportunities

    Starlink sees significant growth potential in enterprise and government sectors, with revenue from these markets expected to comparable or exceed consumer business. The company signed a major agreement with American Airlines and secured over $6 billion in U.S. government contracts in Q2. Management highlighted low penetration in aviation (less than 10%) and the dramatic expansion of the maritime total addressable market (TAM) as key drivers. Starlink Mobile, leveraging EchoStar spectrum and next-gen satellites, is expected to launch service by end of next year, offering a 100x improvement in capability.

    AI-generated summary of the company’s earnings call. Not investment advice.