STARBASE, TEXAS / RankWire.AI / – SpaceX saw its shares decline by 13.6% on August 5, closing at $108.27. The decline followed the company’s first quarterly earnings report since its initial public offering in June. Investors evaluated robust revenue growth against the backdrop of $18.37 billion spent on capital expenditures during the quarter. Notably, investments in artificial intelligence infrastructure reached $15.83 billion, a significant increase from $749 million a year earlier.
During the trading session, the stock dipped as low as $107.18 and finished nearly 20% below its $135 IPO price. The company issued 638.9 million Class A shares in the offering, including the full underwriters’ option, generating approximately $85.68 billion in net proceeds. Trading commenced on Nasdaq on June 12, and the share price later peaked at $201.80.
For the second quarter, SpaceX reported revenue of $7.81 billion, representing a 92% increase from $4.07 billion in the same period last year. The company’s net loss was reduced to $541 million from roughly $1.01 billion. Operating losses also declined to $143 million from $970 million during the comparable period. Adjusted EBITDA reached $3.54 billion.
Escalating expenditure on AI technology
Revenues generated by the artificial intelligence segment totaled $2.56 billion for the quarter, reflecting a 247.5% surge from $737 million. The increase was primarily driven by new AI services and infrastructure investments, which contributed $1.88 billion of that growth. Meanwhile, advertising revenue fell by $59 million over the same period. The division posted a $1.26 billion operating loss as R&D expenses surged by 94.1% to $2.18 billion.
Starlink and other connectivity offerings continued to be SpaceX’s leading revenue sources. Revenue from connectivity services increased by 65.8% to $4.29 billion, while operating income grew by 79.4% to $1.66 billion. Subscriber numbers for consumers rose by 101.2%, although average revenue per user declined by 22.4%. Additional revenue gains came from government, aviation, maritime, and enterprise sectors, totaling $939 million.
Massive post-IPO share release underway
Starting August 6, up to 911.5 million shares held by employees and early investors will become eligible for sale. This volume accounts for roughly 6.9% of SpaceX’s 13.18 billion Class A and Class B shares outstanding. It surpasses the shares sold during the IPO by approximately 272.6 million. The company detailed the staggered sale schedule in its prospectus submitted to the Securities and Exchange Commission.
At the closing price on August 5, the initially unlocked block of shares had an estimated value of around $98.7 billion. As of July 28, SpaceX reported holding 7.70 billion Class A shares and 5.49 billion Class B shares. As of June, the company’s cash holdings amounted to $93.52 billion, with an additional $6.49 billion in marketable securities. August 6 marks the first day when eligible shareholders can sell shares from the initial restricted group.
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