STARBASE, TEXAS / RankWire.AI / – SpaceX experienced a 13.6% drop in its stock price on Wednesday, August 5, closing at $108.27, marking its lowest level since the company’s June public listing. This downturn followed the release of its initial quarterly earnings report as a publicly traded entity. The report revealed capital expenditures totaling $18.37 billion for the quarter, with artificial intelligence infrastructure making up $15.83 billion of that total. During the same period last year, SpaceX allocated $749 million to AI assets.
The stock dipped to an intraday low of $107.18 and ended nearly 20% below its $135 IPO price. Trading on Nasdaq commenced for SpaceX on June 12. The company issued 638.9 million Class A shares through the offering, including the full allotment allocated to underwriters. The offering raised approximately $85.68 billion in net proceeds. After reaching a peak of $201.80 post-IPO, the share price subsequently declined amid recent market movements.
Quarterly revenues surged by 92% to $7.81 billion from $4.07 billion in the same period last year. The company reduced its net loss to $541 million from about $1.01 billion. Operating losses decreased to $143 million from $970 million. Adjusted EBITDA reached $3.54 billion. Elon Musk, SpaceX’s CEO, participated alongside other executives in the first earnings call following the IPO.
Capital boost driven by AI infrastructure investments
The AI sector generated revenue of $2.56 billion, reflecting a 247.5% increase from $737 million. The growth was largely driven by new AI services and infrastructure, which contributed $1.88 billion. Despite the revenue growth, the segment reported an operating loss of $1.26 billion, compared to $1.52 billion a year prior. AI R&D expenses increased by 94.1% to $2.18 billion. During the quarter, advertising revenue saw a decrease of $59 million.
Starlink along with related connectivity services brought in $4.29 billion, an increase of 65.8%. Income from connectivity operations rose by 79.4% to $1.66 billion. The subscriber base grew by 101.2%, while average revenue per user decreased by 22.4%. Additionally, revenue from government, aviation, maritime, and enterprise activities increased by $939 million. The space division recorded sales of $962 million but posted an operating loss of $542 million.
Post-IPO share restrictions begin to lift
On Thursday, August 6, up to 911.5 million shares held by employees and early investors will become eligible for sale. This block represents about 6.9% of SpaceX’s total 13.18 billion Class A and Class B shares outstanding. It surpasses the IPO share count by roughly 272.6 million. Details regarding the staggered release schedule have been disclosed in SpaceX’s prospectus filed with the Securities and Exchange Commission. While holders are permitted to sell, there is no obligation to do so.
The initial unlocked tranche had a notional value of around $98.7 billion based on Wednesday’s closing price. As of July 28, SpaceX reported 7.70 billion Class A shares and 5.49 billion Class B shares outstanding. At the end of June, the company held $93.52 billion in cash and $6.49 billion in marketable securities. The August 6 unlock marks the beginning of the scheduled release period for restricted shareholders, with further lock-up expirations outlined in the company’s post-IPO timetable.