California-based space travel and space launch services provider Virgin Galactic reported a larger EPS loss of USD 0.55 for Q3 2022 compared to an EPS loss of USD 0.19 in the same period a year ago, missing analyst estimates of a loss of USD 0.41. The company’s revenue fell 70% YoY only having generated USD 767,000 compared to USD 2.6 million in Q3 2021.

The company expects its Q4 2022 free cash flow to be in the range of  USD 120 million to 130 million.

The increase in net loss for this quarter was driven by an increase in customer experience expenses and R&D spending which was 65% higher than last year during the same quarter along with unfavorable foreign currency translation adjustments. Adjusted EBITDA loss increased 47% YoY reaching USD 129 million compared to USD 68 million in Q3 2021.

The company was able to generate USD 100 million in gross proceeds through the issuance of 15.6 million shares of common stock. As of September 30, 2022, the company’s cash and cash equivalents, and marketable securities are at USD 1.1 billion.

Despite the large losses, the company is expected to conduct a series of test flights in Q1 2023, with the launch of commercial services slated for Q2 2023.