SpaceX Q3 revenue more than doubled as adjusted EBITDA quadrupled

Quarterly results

The Motley Fool reports that Space Exploration Technologies Corp. released its latest quarterly figures last week and showed strong year-over-year improvement. The company moved from a loss a year earlier to solid profitability, and its adjusted earnings also increased sharply.

Revenue and segment growth

For the quarter ending Sept. 30, SpaceX reported revenue of $14.6 billion, more than twice the $5.6 billion it posted in the same quarter last year, according to The Motley Fool. The article says the main driver was the company’s artificial intelligence segment, Super Intelligence (SI), which increased from $813 million to $7.6 billion.

Earnings and operating profit

The Motley Fool says adjusted earnings before interest, taxes, depreciation, and amortization, or EBITDA, reached $8.8 billion, up from $2.2 billion a year earlier. It says SI was also the biggest factor there, with adjusted EBITDA just under $5 billion, compared with a loss of $428 million in the prior-year period. The article adds that SpaceX also reported operating profit of $2.8 billion, versus an operating loss of $273 million a year ago, and describes that measure as a potentially better sign of overall profitability because it includes operating revenue and expenses.

Valuation and stock outlook

The Motley Fool says investors may still view the stock as expensive despite the results. It cites a market capitalization of $2 trillion and a valuation of 85 times estimated future profits based on analyst expectations. The article also says broader concern over heavy capital spending by many technology companies may be limiting further share gains.

Share price context

The piece notes that the stock has not reached $200 since its early trading days in June after its IPO, when enthusiasm around the business was strongest. It says the stock could move higher depending on investor sentiment, but the Q3 results alone are not likely to be enough to push it back to $200 without a more meaningful catalyst.