Space Exploration Technologies Corp.

Second-quarter 2026 revenue was $7.8 billion, up 92% from $4.1 billion a year ago. Quarterly net loss was $541 million, an improvement of $467 million year over year, and adjusted EBITDA was $3.5 billion, up 191% from $1.2 billion. Segment revenue included Space at $962 million, up 29% year over year, Connectivity at $4.3 billion, up 66% year over year, and AI at $2.6 billion, up 247% year over year. Bret said total company capital expenditures were approximately $18.4 billion, with roughly $15.8 billion supporting AI compute infrastructure, and the company ended the quarter with $100 billion of cash, cash equivalents and marketable securities and $47.5 billion in backlog. Guidance/commentary included: next two quarters’ CapEx should be similar to Q2, compute should end 2026 at over 2 gigawatts, and management said there is a trajectory to $100 billion of ARR by the end of this year based on expected December revenue.

Elon Musk framed the quarter around execution on three big fronts: Starship, Starlink, and AI. He said Starship is making strong progress toward full reusability, Starlink V3 should materially expand bandwidth and revenue potential, and Grok development is accelerating with new model releases coming quickly. His tone was highly confident and expansive, repeatedly arguing that the company is underestimating the scale of these opportunities and that SpaceX can build capacity faster than rivals.

Bret Johnsen highlighted accelerating revenue growth across all segments and said the company narrowed net losses by nearly half while growing adjusted EBITDA faster than revenue. He walked through segment figures: Space revenue of $962 million, Connectivity revenue of $4.3 billion, and AI revenue of $2.6 billion, with AI turning positive on adjusted EBITDA at $1.1 billion. He also cited strong liquidity and capital markets progress, including $100 billion of cash, cash equivalents and marketable securities, $47.5 billion in backlog, approximately $18.4 billion of CapEx, and a $25 billion senior notes offering with a weighted average interest rate of 5.855% and average maturity of 11.7 years.

Analysts focused on enterprise and government backlog, CapEx intensity, Starlink Mobile, and the path to much higher compute capacity. Management said enterprise revenue is sticky, they have never lost an enterprise customer, and government contracts exceeded $6 billion in Q2; they also said aviation is less than 10% penetrated and maritime is a large opportunity. On CapEx, Bret said the next two quarters should look similar to Q2, while Elon said only about 10% of compute may be used for Grok training over time, with more going to inference and leasing. For Starlink Mobile, Gwynne said service would start next year and end of next year respectively for launches and service, while management emphasized a capex-efficient terrestrial build using smaller distributed stations rather than a traditional nationwide carrier buildout.