A recently published article “We're Hopeful That Virgin Galactic Holdings Will Use Its Cash Wisely” examined that question:
- As of September 2021, Virgin Galactic had sufficient cash to support three years of operations, i.e. to 2024.
- Analysts believe that Virgin Galactic will break even in four years of operations, i.e. 2025.
- Virgin Galactic will need to raise additional capital before breaking even.
Virgin Galactic's future success in raising capital will be heavily dependent upon their sales outlook and their market capitalization. It will certainly result in shareholders being further diluted in the future.
Virgin Galactic recently announced that they are planning to raise up to $500 million in debt. The net proceeds will be used for funding working capital and operational expenses. When this transaction is complete it will influence when they might run out of money.
Additional information for the curious:
Virgin Galactic Stock Won't Be Bouncing Back Anytime Soon
How Will Virgin Galactic Make Money?
Spaceport America and Virgin Galactic: The Numbers Never Added Up
Here's How Virgin Galactic Will Earn A Profit