SpaceX reported a sharp increase in second-quarter revenue driven by Starlink connectivity services and a rapidly expanding artificial intelligence unit, but its $15.8 billion quarterly AI infrastructure bill pushed the company to a $541 million net loss.
Revenue reached $7.814 billion for the three months ended in June, up 92% from a year earlier, according to SpaceX’s Aug. 4 results. The loss narrowed from $1.008 billion in the comparable quarter of 2025, while per-share losses of about $0.09 came in below expectations of $0.23 to $0.24.
The figures portray a company whose financial center of gravity is increasingly split between Starlink’s cash-generating connectivity business and an AI operation consuming capital at a pace far beyond its current revenue. Starlink generated $1.656 billion in quarterly profit, enough to offset much, though not all, of the combined $1.799 billion losses reported by the AI and space divisions.
Shares closed Aug. 4 at $125.33, up 9.43% during regular trading, before falling roughly 7.5% in after-hours activity to about $116. That level remained below the company’s $135 IPO price.
Starlink remained the company’s profit engine
Connectivity revenue, led by Starlink, totaled $4.291 billion, rising 66% from a year earlier and 32% from the first quarter. The segment was both SpaceX’s largest revenue source and its only profitable major division during the quarter.
Starlink’s growing contribution reflects the financial advantage of recurring connectivity revenue over the capital-heavy business of building launch vehicles, satellites, and data centers. The company’s space segment produced $962 million in revenue, up 29% year over year, but recorded a $542 million loss.
The company also reported $100 billion in cash equivalents and $47.5 billion in unfilled orders. Those balances give SpaceX substantial capacity to continue financing infrastructure projects, though the pace of capital expenditure means the company’s operating model will depend increasingly on whether new computing assets can be converted into contracted, recurring revenue.
AI became the second-largest revenue segment
SpaceX’s AI segment generated $2.561 billion in revenue during the quarter, a 247% increase from a year earlier and a 213% increase from the prior quarter. That made AI the company’s second-largest business line, ahead of its space operations.
Within that segment, AI solutions and infrastructure accounted for $2.194 billion of revenue, while advertising contributed $367 million. Yet the business reported a quarterly loss of $1.257 billion, reflecting the cost of scaling computing capacity before the associated services have reached mature margins.
The gap between AI revenue and spending was particularly pronounced. SpaceX spent $15.828 billion on AI capital expenditures during the quarter, equal to more than six times AI revenue and more than 86% of its total $18.369 billion quarterly capital expenditure.
Bret Johnsen, SpaceX’s chief financial officer, said on the earnings call that most of the spending went toward compute infrastructure. AI capital expenditure rose 104% from the first quarter, according to the company.
Johnsen said those outlays were not expected to decline materially over the next two quarters. He also said the company believed investment in AI computing could be recovered in less than a year, citing a recently signed $6.7 billion cloud-services contract and a target of reaching $100 billion in annual recurring revenue by the end of the year.
That forecast places a high burden on execution. AI revenue would need to continue expanding rapidly while infrastructure utilization rises enough to spread the fixed cost of servers, networking equipment, data centers, and power across a much larger customer base.
Compute targets point to continuing infrastructure costs
SpaceX said its total computing power load reached 1.4 gigawatts by the end of the second quarter, compared with 1 gigawatt in the first quarter and 0.4 gigawatts a year earlier. The company forecast 2 gigawatts by year-end.
Elon Musk said compute capability could approach 10 gigawatts by the end of 2027, doubling an earlier 5-gigawatt projection. Such an expansion would place SpaceX among the technology companies committing the largest sums to AI infrastructure, alongside firms increasing spending on data centers and advanced computing hardware.
The company’s results arrived during an earnings season in which large technology groups were also reporting elevated AI capital budgets. SpaceX’s numbers differ from the typical software-company model because Starlink provides an existing cash flow base, while the AI division is absorbing most of the company’s new investment.
The market response suggested traders were weighing those two forces: strong top-line growth and a narrowing company-wide loss against the scale of planned infrastructure spending. The initial rally faded after the close as the earnings release and management commentary put more attention on the capital required to support the AI buildout.
Lockup expiry could increase near-term trading activity
An initial lockup expiration is scheduled for Aug. 6, when about 910 million insider shares are expected to become tradable. That amount exceeds the reported public float of roughly 640 million shares, creating the potential for a significant increase in available supply.
Options activity also showed positioning around lower share-price levels. OptionCharts reported a put-call ratio of 0.97, indicating relatively balanced demand for downside protection and bullish exposure. For options expiring Aug. 7, the $100 strike held the largest open-interest position, with 24,947 put contracts. Trading was concentrated around strikes between $110 and $115.
The second-quarter report leaves SpaceX with a clear operational divide: Starlink is generating profits and revenue at scale, while AI has become a major business line whose economics will be judged by how quickly its expanding compute capacity produces durable cloud and infrastructure income.
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