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⚠ The Profitability & Valuation QuestionHigh threat

SpaceX (SPCX) — threat to the moat

The first big profit was mostly not earned by the businesses: $1,613 million of the $4,404 million came from interest, other income and a tax benefit.

SpaceX earned $4,404 million in the September quarter, and the businesses earned $2,791 million of it1. The other $1,613 million came from below the operating line2: $873 million of interest on the listing money, $1,025 million of other income, less $675 million of interest expense, plus a $390 million tax benefit3. The headline is a real improvement and a false precision at the same time, and anyone building a valuation on it should separate the two.

The quarter below the operating line ($M)+$873MInterest income+$1,025MOther income, net-$675MInterest expense+$390MTax benefitSpaceX Q3 2026 statement of operations; together $1,613M of the $4,404M of net income.
Interest, other income and a tax benefit supplied more than a third of the quarter's net income.

The operating figure is the one that matters, and it is genuinely better. Income from operations of $2,791 million follows a $143 million loss in June, and the nine months to September 2025 lost $1,216 million4. Revenue grew 86.5% sequentially5 and 161% on a year earlier6. Over the trailing twelve months, though, the company sold $32,043 million and lost $2,760 million, with income from operations of negative $668 million7. That is why the quote page shows no price-to-earnings ratio8: there are no trailing earnings to divide.

The valuation has quietly become less extreme, and for the right reason. At $147.79 the market value is about $2,007 billion, or 62.6 times trailing sales9, a third below where that multiple stood three months ago, because the denominator grew rather than because the price did anything10. On estimates the shares sit at 23.45 times forward sales and 73.25 times forward earnings11 — still a price that assumes a great deal, but no longer one that assumes everything at once. Thirty-eight analysts carry an average target of $222.71, against a 52-week range of $104.83 to $225.6412, which tells you how wide the range of plausible outcomes is thought to be.

Cash is the part the headline understates in the other direction. The nine months generated $13,097 million from operations and spent $48,069 million on property and equipment, so free cash flow was negative $34,972 million13. That was covered by $85,675 million of net listing proceeds and $51,834 million of new borrowing, against $39,845 million of repayments and a $1,153 million premium to retire old debt14. What is left is strong: $89,855 million of cash and marketable securities against $38,844 million of debt, a net cash position of $51,011 million15. Management's phrase for the ambition is "maintaining a robust, investment-grade balance sheet"16, and on this snapshot the balance sheet is the least of the worries.

The risk is therefore not solvency, it is arithmetic. Capital spending ran at 134.4% of revenue in the quarter and 177.5% over nine months17, which means the listing bought a few years of this pace and no more. Each year of spending at that rate adds depreciation, and depreciation is what turns an adjusted-EBITDA business into a loss-making one: $8,809 million of adjusted EBITDA in the quarter became $2,791 million of operating income18.

Here is the test, and it is unusually close. Two more quarters resembling this one would lift the trailing twelve months out of loss, and SpaceX would have a price-to-earnings ratio for the first time. Watch the trailing figure rather than the quarterly one. A trailing year that turns positive on operating income, not on interest and tax, is the moment this argument changes from faith to measurement.

The number that tests this threat
Moat Explorer calc
Trailing twelve-month net income (loss)
-$2,760M to 30 Sep 2026, against +$4,404M in the quarter alone

The quarter was profitable and the year is not, which is why no price-to-earnings ratio exists at 62.6 times trailing sales. Two more quarters like September would turn the trailing figure positive; a relapse would show the September profit was interest income and a tax benefit sitting on top of a thin operating result.

How it's calculated: The Q4 2025 net loss of 2,347 (FY2025 4,937 less 9M 2025 2,590) added to the 9M 2026 loss of 413.
Source: SpaceX Q3 2026 results release (Form 8-K exhibit 99.1, 20 October 2026) — consolidated statements of operations, balance sheets and cash flows ↗
References
  1. ReportedSpaceX earned $4,404 million in the September quarter, and the businesses earned $2,791 million of it.
    SpaceX Q3 2026 results release (Form 8-K exhibit 99.1, 20 October 2026) — consolidated statements of operations, balance sheets and cash flows — Q3 2026 — quarter ended 30 September 2026 · publ. 20 October 2026 · source ↗
  2. Moat Explorer calcThe other $1,613 million came from below the operating line: $873 million of interest on the listing money, $1,025 million of other income, less $675 million of interest expense, plus a $390 million tax benefit.
    Moat Explorer calculation from SpaceX's Q3 2026 results release and market data — Q3 revenue mix Space $1,767M / Connectivity $5,248M / SI $7,560M of $14,575M = 12.1% / 36.0% / 51.9% (Q2: $962M / $4,291M / $2,561M of $7,814M = 12.3% / 54.9% / 32.8%); sequential revenue growth 14,575 / 7,814 - 1 = 86.5%; nine-month growth 27,083 / 13,714 - 1 = 97.5%; Q4 2025 revenue 18,674 - 13,714 = $4,960M and trailing-twelve-month revenue 4,960 + 27,083 = $32,043M; Q4 2025 net (4,937) - (2,590) = $(2,347)M and trailing net (2,347) + (413) = $(2,760)M; Q4 2025 income from operations (2,589) - (1,216) = $(1,373)M and trailing (1,373) + 705 = $(668)M; market capitalisation 13,579m shares x $147.79 = $2,007bn and price to trailing sales 2,007 / 32,043 = 62.6x; Q3 operating margin 2,791 / 14,575 = 19.1% and Adjusted EBITDA margin 8,809 / 14,575 = 60.4%; non-operating contribution to net income 4,404 - 2,791 = $1,613M (interest income 873 + other income 1,025 - interest expense 675 + tax benefit 390); capex as a share of revenue 19,593 / 14,575 = 134.4% and 48,069 / 27,083 = 177.5%; nine-month free cash flow 13,097 - 48,069 = $(34,972)M; SI share of capex 16,444 / 19,593 = 83.9% and 39,995 / 48,069 = 83.2%; Connectivity share of group income from operations 2,367 / 2,791 = 84.8%; Space research and development growth 1,225 / 849 - 1 = 44.3%; Connectivity operating margin 2,367 / 5,248 = 45.1% (Q2 1,656 / 4,291 = 38.6%; Q3 2025 1,190 / 3,097 = 38.4%); enterprise and government share 2,127 / 5,248 = 40.5% (Q2 42.1%, Q3 2025 35.9%); mass to orbit per launch 476 / 35 = 13.6 t (Q2 485 / 38 = 12.8 t; Q3 2025 525 / 44 = 11.9 t); days between launches 92 / 35 = 2.6; advertising share of SI 538 / 7,560 = 7.1% (Q3 2025 454 / 813 = 55.8%) and nine-month advertising 1,248 / 1,323 - 1 = -5.7%; SI income from operations before the Cursor charge 431 + 1,217 = $1,648M and SI operating margin 431 / 7,560 = 5.7%; cash and marketable securities 51,294 + 38,561 = $89,855M; total debt 2,698 + 36,146 = $38,844M of which related party 2,181 + 10,716 = $12,897M; net cash 89,855 - 38,844 = $51,011M; deferred revenue 10,784 + 6,736 = $17,520M against 6,111 + 6,005 = $12,116M, up 44.6%; goodwill increase 48,423 - 11,809 = $36,614M and goodwill plus intangibles 54,777 / 254,045 = 21.6% of assets; property, plant and equipment 89,483 / 42,602 - 1 = 110.0%; Cursor shares 391.0m of 13,579m = 2.88% at an implied 60,000 / 389.289 = $154.13 a share; Cursor revenue 608 / 47 x 365 = $4,722M annualised, so 60,000 / 4,722 = 12.7x; diluted shares 12,475 / 2,941 - 1 = 324%; the September quarter was 14,575 / 32,043 = 45.5% of trailing revenue — Q3 2026 — quarter ended 30 September 2026 · publ. 20 October 2026 · source ↗
    Method: The operands and the arithmetic are set out in full in the source line.
  3. ReportedThe other $1,613 million came from below the operating line: $873 million of interest on the listing money, $1,025 million of other income, less $675 million of interest expense, plus a $390 million tax benefit.
    SpaceX Q3 2026 results release (Form 8-K exhibit 99.1, 20 October 2026) — consolidated statements of operations, balance sheets and cash flows — Q3 2026 — quarter ended 30 September 2026 · publ. 20 October 2026 · source ↗
  4. ReportedIncome from operations of $2,791 million follows a $143 million loss in June, and the nine months to September 2025 lost $1,216 million.
    SpaceX Q3 2026 results release (Form 8-K exhibit 99.1, 20 October 2026) — segment table: revenue, income from operations, Adjusted EBITDA and capital expenditure by segment — Q3 2026 — quarter ended 30 September 2026 · publ. 20 October 2026 · source ↗
  5. Moat Explorer calcRevenue grew 86.5% sequentially and 161% on a year earlier.
    Moat Explorer calculation from SpaceX's Q3 2026 results release and market data — Q3 revenue mix Space $1,767M / Connectivity $5,248M / SI $7,560M of $14,575M = 12.1% / 36.0% / 51.9% (Q2: $962M / $4,291M / $2,561M of $7,814M = 12.3% / 54.9% / 32.8%); sequential revenue growth 14,575 / 7,814 - 1 = 86.5%; nine-month growth 27,083 / 13,714 - 1 = 97.5%; Q4 2025 revenue 18,674 - 13,714 = $4,960M and trailing-twelve-month revenue 4,960 + 27,083 = $32,043M; Q4 2025 net (4,937) - (2,590) = $(2,347)M and trailing net (2,347) + (413) = $(2,760)M; Q4 2025 income from operations (2,589) - (1,216) = $(1,373)M and trailing (1,373) + 705 = $(668)M; market capitalisation 13,579m shares x $147.79 = $2,007bn and price to trailing sales 2,007 / 32,043 = 62.6x; Q3 operating margin 2,791 / 14,575 = 19.1% and Adjusted EBITDA margin 8,809 / 14,575 = 60.4%; non-operating contribution to net income 4,404 - 2,791 = $1,613M (interest income 873 + other income 1,025 - interest expense 675 + tax benefit 390); capex as a share of revenue 19,593 / 14,575 = 134.4% and 48,069 / 27,083 = 177.5%; nine-month free cash flow 13,097 - 48,069 = $(34,972)M; SI share of capex 16,444 / 19,593 = 83.9% and 39,995 / 48,069 = 83.2%; Connectivity share of group income from operations 2,367 / 2,791 = 84.8%; Space research and development growth 1,225 / 849 - 1 = 44.3%; Connectivity operating margin 2,367 / 5,248 = 45.1% (Q2 1,656 / 4,291 = 38.6%; Q3 2025 1,190 / 3,097 = 38.4%); enterprise and government share 2,127 / 5,248 = 40.5% (Q2 42.1%, Q3 2025 35.9%); mass to orbit per launch 476 / 35 = 13.6 t (Q2 485 / 38 = 12.8 t; Q3 2025 525 / 44 = 11.9 t); days between launches 92 / 35 = 2.6; advertising share of SI 538 / 7,560 = 7.1% (Q3 2025 454 / 813 = 55.8%) and nine-month advertising 1,248 / 1,323 - 1 = -5.7%; SI income from operations before the Cursor charge 431 + 1,217 = $1,648M and SI operating margin 431 / 7,560 = 5.7%; cash and marketable securities 51,294 + 38,561 = $89,855M; total debt 2,698 + 36,146 = $38,844M of which related party 2,181 + 10,716 = $12,897M; net cash 89,855 - 38,844 = $51,011M; deferred revenue 10,784 + 6,736 = $17,520M against 6,111 + 6,005 = $12,116M, up 44.6%; goodwill increase 48,423 - 11,809 = $36,614M and goodwill plus intangibles 54,777 / 254,045 = 21.6% of assets; property, plant and equipment 89,483 / 42,602 - 1 = 110.0%; Cursor shares 391.0m of 13,579m = 2.88% at an implied 60,000 / 389.289 = $154.13 a share; Cursor revenue 608 / 47 x 365 = $4,722M annualised, so 60,000 / 4,722 = 12.7x; diluted shares 12,475 / 2,941 - 1 = 324%; the September quarter was 14,575 / 32,043 = 45.5% of trailing revenue — Q3 2026 — quarter ended 30 September 2026 · publ. 20 October 2026 · source ↗
    Method: The operands and the arithmetic are set out in full in the source line.
  6. ReportedRevenue grew 86.5% sequentially and 161% on a year earlier.
    SpaceX Q3 2026 results release (Form 8-K exhibit 99.1, 20 October 2026) — headline results and CFO commentary — Q3 2026 — quarter ended 30 September 2026 · publ. 20 October 2026 · source ↗
  7. Moat Explorer calcOver the trailing twelve months, though, the company sold $32,043 million and lost $2,760 million, with income from operations of negative $668 million.
    Moat Explorer calculation from SpaceX's Q3 2026 results release and market data — Q3 revenue mix Space $1,767M / Connectivity $5,248M / SI $7,560M of $14,575M = 12.1% / 36.0% / 51.9% (Q2: $962M / $4,291M / $2,561M of $7,814M = 12.3% / 54.9% / 32.8%); sequential revenue growth 14,575 / 7,814 - 1 = 86.5%; nine-month growth 27,083 / 13,714 - 1 = 97.5%; Q4 2025 revenue 18,674 - 13,714 = $4,960M and trailing-twelve-month revenue 4,960 + 27,083 = $32,043M; Q4 2025 net (4,937) - (2,590) = $(2,347)M and trailing net (2,347) + (413) = $(2,760)M; Q4 2025 income from operations (2,589) - (1,216) = $(1,373)M and trailing (1,373) + 705 = $(668)M; market capitalisation 13,579m shares x $147.79 = $2,007bn and price to trailing sales 2,007 / 32,043 = 62.6x; Q3 operating margin 2,791 / 14,575 = 19.1% and Adjusted EBITDA margin 8,809 / 14,575 = 60.4%; non-operating contribution to net income 4,404 - 2,791 = $1,613M (interest income 873 + other income 1,025 - interest expense 675 + tax benefit 390); capex as a share of revenue 19,593 / 14,575 = 134.4% and 48,069 / 27,083 = 177.5%; nine-month free cash flow 13,097 - 48,069 = $(34,972)M; SI share of capex 16,444 / 19,593 = 83.9% and 39,995 / 48,069 = 83.2%; Connectivity share of group income from operations 2,367 / 2,791 = 84.8%; Space research and development growth 1,225 / 849 - 1 = 44.3%; Connectivity operating margin 2,367 / 5,248 = 45.1% (Q2 1,656 / 4,291 = 38.6%; Q3 2025 1,190 / 3,097 = 38.4%); enterprise and government share 2,127 / 5,248 = 40.5% (Q2 42.1%, Q3 2025 35.9%); mass to orbit per launch 476 / 35 = 13.6 t (Q2 485 / 38 = 12.8 t; Q3 2025 525 / 44 = 11.9 t); days between launches 92 / 35 = 2.6; advertising share of SI 538 / 7,560 = 7.1% (Q3 2025 454 / 813 = 55.8%) and nine-month advertising 1,248 / 1,323 - 1 = -5.7%; SI income from operations before the Cursor charge 431 + 1,217 = $1,648M and SI operating margin 431 / 7,560 = 5.7%; cash and marketable securities 51,294 + 38,561 = $89,855M; total debt 2,698 + 36,146 = $38,844M of which related party 2,181 + 10,716 = $12,897M; net cash 89,855 - 38,844 = $51,011M; deferred revenue 10,784 + 6,736 = $17,520M against 6,111 + 6,005 = $12,116M, up 44.6%; goodwill increase 48,423 - 11,809 = $36,614M and goodwill plus intangibles 54,777 / 254,045 = 21.6% of assets; property, plant and equipment 89,483 / 42,602 - 1 = 110.0%; Cursor shares 391.0m of 13,579m = 2.88% at an implied 60,000 / 389.289 = $154.13 a share; Cursor revenue 608 / 47 x 365 = $4,722M annualised, so 60,000 / 4,722 = 12.7x; diluted shares 12,475 / 2,941 - 1 = 324%; the September quarter was 14,575 / 32,043 = 45.5% of trailing revenue — Q3 2026 — quarter ended 30 September 2026 · publ. 20 October 2026 · source ↗
    Method: The operands and the arithmetic are set out in full in the source line.
  8. ReportedThat is why the quote page shows no price-to-earnings ratio: there are no trailing earnings to divide.
    Market data (stockanalysis.com) — SpaceX closed at $147.79 on 20 October 2026; market capitalisation $2.01 trillion on 13.57 billion shares — As at 20–21 October 2026 · publ. 21 October 2026 · source ↗
  9. Moat Explorer calcAt $147.79 the market value is about $2,007 billion, or 62.6 times trailing sales, a third below where that multiple stood three months ago, because the denominator grew rather than because the price did anything.
    Moat Explorer calculation from SpaceX's Q3 2026 results release and market data — Q3 revenue mix Space $1,767M / Connectivity $5,248M / SI $7,560M of $14,575M = 12.1% / 36.0% / 51.9% (Q2: $962M / $4,291M / $2,561M of $7,814M = 12.3% / 54.9% / 32.8%); sequential revenue growth 14,575 / 7,814 - 1 = 86.5%; nine-month growth 27,083 / 13,714 - 1 = 97.5%; Q4 2025 revenue 18,674 - 13,714 = $4,960M and trailing-twelve-month revenue 4,960 + 27,083 = $32,043M; Q4 2025 net (4,937) - (2,590) = $(2,347)M and trailing net (2,347) + (413) = $(2,760)M; Q4 2025 income from operations (2,589) - (1,216) = $(1,373)M and trailing (1,373) + 705 = $(668)M; market capitalisation 13,579m shares x $147.79 = $2,007bn and price to trailing sales 2,007 / 32,043 = 62.6x; Q3 operating margin 2,791 / 14,575 = 19.1% and Adjusted EBITDA margin 8,809 / 14,575 = 60.4%; non-operating contribution to net income 4,404 - 2,791 = $1,613M (interest income 873 + other income 1,025 - interest expense 675 + tax benefit 390); capex as a share of revenue 19,593 / 14,575 = 134.4% and 48,069 / 27,083 = 177.5%; nine-month free cash flow 13,097 - 48,069 = $(34,972)M; SI share of capex 16,444 / 19,593 = 83.9% and 39,995 / 48,069 = 83.2%; Connectivity share of group income from operations 2,367 / 2,791 = 84.8%; Space research and development growth 1,225 / 849 - 1 = 44.3%; Connectivity operating margin 2,367 / 5,248 = 45.1% (Q2 1,656 / 4,291 = 38.6%; Q3 2025 1,190 / 3,097 = 38.4%); enterprise and government share 2,127 / 5,248 = 40.5% (Q2 42.1%, Q3 2025 35.9%); mass to orbit per launch 476 / 35 = 13.6 t (Q2 485 / 38 = 12.8 t; Q3 2025 525 / 44 = 11.9 t); days between launches 92 / 35 = 2.6; advertising share of SI 538 / 7,560 = 7.1% (Q3 2025 454 / 813 = 55.8%) and nine-month advertising 1,248 / 1,323 - 1 = -5.7%; SI income from operations before the Cursor charge 431 + 1,217 = $1,648M and SI operating margin 431 / 7,560 = 5.7%; cash and marketable securities 51,294 + 38,561 = $89,855M; total debt 2,698 + 36,146 = $38,844M of which related party 2,181 + 10,716 = $12,897M; net cash 89,855 - 38,844 = $51,011M; deferred revenue 10,784 + 6,736 = $17,520M against 6,111 + 6,005 = $12,116M, up 44.6%; goodwill increase 48,423 - 11,809 = $36,614M and goodwill plus intangibles 54,777 / 254,045 = 21.6% of assets; property, plant and equipment 89,483 / 42,602 - 1 = 110.0%; Cursor shares 391.0m of 13,579m = 2.88% at an implied 60,000 / 389.289 = $154.13 a share; Cursor revenue 608 / 47 x 365 = $4,722M annualised, so 60,000 / 4,722 = 12.7x; diluted shares 12,475 / 2,941 - 1 = 324%; the September quarter was 14,575 / 32,043 = 45.5% of trailing revenue — Q3 2026 — quarter ended 30 September 2026 · publ. 20 October 2026 · source ↗
    Method: The operands and the arithmetic are set out in full in the source line.
  10. Moat Explorer calcAt $147.79 the market value is about $2,007 billion, or 62.6 times trailing sales, a third below where that multiple stood three months ago, because the denominator grew rather than because the price did anything.
    Moat Explorer calculation from SpaceX's Q3 2026 results release and market data — Q3 revenue mix Space $1,767M / Connectivity $5,248M / SI $7,560M of $14,575M = 12.1% / 36.0% / 51.9% (Q2: $962M / $4,291M / $2,561M of $7,814M = 12.3% / 54.9% / 32.8%); sequential revenue growth 14,575 / 7,814 - 1 = 86.5%; nine-month growth 27,083 / 13,714 - 1 = 97.5%; Q4 2025 revenue 18,674 - 13,714 = $4,960M and trailing-twelve-month revenue 4,960 + 27,083 = $32,043M; Q4 2025 net (4,937) - (2,590) = $(2,347)M and trailing net (2,347) + (413) = $(2,760)M; Q4 2025 income from operations (2,589) - (1,216) = $(1,373)M and trailing (1,373) + 705 = $(668)M; market capitalisation 13,579m shares x $147.79 = $2,007bn and price to trailing sales 2,007 / 32,043 = 62.6x; Q3 operating margin 2,791 / 14,575 = 19.1% and Adjusted EBITDA margin 8,809 / 14,575 = 60.4%; non-operating contribution to net income 4,404 - 2,791 = $1,613M (interest income 873 + other income 1,025 - interest expense 675 + tax benefit 390); capex as a share of revenue 19,593 / 14,575 = 134.4% and 48,069 / 27,083 = 177.5%; nine-month free cash flow 13,097 - 48,069 = $(34,972)M; SI share of capex 16,444 / 19,593 = 83.9% and 39,995 / 48,069 = 83.2%; Connectivity share of group income from operations 2,367 / 2,791 = 84.8%; Space research and development growth 1,225 / 849 - 1 = 44.3%; Connectivity operating margin 2,367 / 5,248 = 45.1% (Q2 1,656 / 4,291 = 38.6%; Q3 2025 1,190 / 3,097 = 38.4%); enterprise and government share 2,127 / 5,248 = 40.5% (Q2 42.1%, Q3 2025 35.9%); mass to orbit per launch 476 / 35 = 13.6 t (Q2 485 / 38 = 12.8 t; Q3 2025 525 / 44 = 11.9 t); days between launches 92 / 35 = 2.6; advertising share of SI 538 / 7,560 = 7.1% (Q3 2025 454 / 813 = 55.8%) and nine-month advertising 1,248 / 1,323 - 1 = -5.7%; SI income from operations before the Cursor charge 431 + 1,217 = $1,648M and SI operating margin 431 / 7,560 = 5.7%; cash and marketable securities 51,294 + 38,561 = $89,855M; total debt 2,698 + 36,146 = $38,844M of which related party 2,181 + 10,716 = $12,897M; net cash 89,855 - 38,844 = $51,011M; deferred revenue 10,784 + 6,736 = $17,520M against 6,111 + 6,005 = $12,116M, up 44.6%; goodwill increase 48,423 - 11,809 = $36,614M and goodwill plus intangibles 54,777 / 254,045 = 21.6% of assets; property, plant and equipment 89,483 / 42,602 - 1 = 110.0%; Cursor shares 391.0m of 13,579m = 2.88% at an implied 60,000 / 389.289 = $154.13 a share; Cursor revenue 608 / 47 x 365 = $4,722M annualised, so 60,000 / 4,722 = 12.7x; diluted shares 12,475 / 2,941 - 1 = 324%; the September quarter was 14,575 / 32,043 = 45.5% of trailing revenue — Q3 2026 — quarter ended 30 September 2026 · publ. 20 October 2026 · source ↗
    Method: The operands and the arithmetic are set out in full in the source line.
  11. ReportedOn estimates the shares sit at 23.45 times forward sales and 73.25 times forward earnings — still a price that assumes a great deal, but no longer one that assumes everything at once.
    Market data (stockanalysis.com) — SpaceX closed at $147.79 on 20 October 2026; market capitalisation $2.01 trillion on 13.57 billion shares — As at 20–21 October 2026 · publ. 21 October 2026 · source ↗
  12. ReportedThirty-eight analysts carry an average target of $222.71, against a 52-week range of $104.83 to $225.64, which tells you how wide the range of plausible outcomes is thought to be.
    Market data (stockanalysis.com) — SpaceX closed at $147.79 on 20 October 2026; market capitalisation $2.01 trillion on 13.57 billion shares — As at 20–21 October 2026 · publ. 21 October 2026 · source ↗
  13. Moat Explorer calcThe nine months generated $13,097 million from operations and spent $48,069 million on property and equipment, so free cash flow was negative $34,972 million.
    Moat Explorer calculation from SpaceX's Q3 2026 results release and market data — Q3 revenue mix Space $1,767M / Connectivity $5,248M / SI $7,560M of $14,575M = 12.1% / 36.0% / 51.9% (Q2: $962M / $4,291M / $2,561M of $7,814M = 12.3% / 54.9% / 32.8%); sequential revenue growth 14,575 / 7,814 - 1 = 86.5%; nine-month growth 27,083 / 13,714 - 1 = 97.5%; Q4 2025 revenue 18,674 - 13,714 = $4,960M and trailing-twelve-month revenue 4,960 + 27,083 = $32,043M; Q4 2025 net (4,937) - (2,590) = $(2,347)M and trailing net (2,347) + (413) = $(2,760)M; Q4 2025 income from operations (2,589) - (1,216) = $(1,373)M and trailing (1,373) + 705 = $(668)M; market capitalisation 13,579m shares x $147.79 = $2,007bn and price to trailing sales 2,007 / 32,043 = 62.6x; Q3 operating margin 2,791 / 14,575 = 19.1% and Adjusted EBITDA margin 8,809 / 14,575 = 60.4%; non-operating contribution to net income 4,404 - 2,791 = $1,613M (interest income 873 + other income 1,025 - interest expense 675 + tax benefit 390); capex as a share of revenue 19,593 / 14,575 = 134.4% and 48,069 / 27,083 = 177.5%; nine-month free cash flow 13,097 - 48,069 = $(34,972)M; SI share of capex 16,444 / 19,593 = 83.9% and 39,995 / 48,069 = 83.2%; Connectivity share of group income from operations 2,367 / 2,791 = 84.8%; Space research and development growth 1,225 / 849 - 1 = 44.3%; Connectivity operating margin 2,367 / 5,248 = 45.1% (Q2 1,656 / 4,291 = 38.6%; Q3 2025 1,190 / 3,097 = 38.4%); enterprise and government share 2,127 / 5,248 = 40.5% (Q2 42.1%, Q3 2025 35.9%); mass to orbit per launch 476 / 35 = 13.6 t (Q2 485 / 38 = 12.8 t; Q3 2025 525 / 44 = 11.9 t); days between launches 92 / 35 = 2.6; advertising share of SI 538 / 7,560 = 7.1% (Q3 2025 454 / 813 = 55.8%) and nine-month advertising 1,248 / 1,323 - 1 = -5.7%; SI income from operations before the Cursor charge 431 + 1,217 = $1,648M and SI operating margin 431 / 7,560 = 5.7%; cash and marketable securities 51,294 + 38,561 = $89,855M; total debt 2,698 + 36,146 = $38,844M of which related party 2,181 + 10,716 = $12,897M; net cash 89,855 - 38,844 = $51,011M; deferred revenue 10,784 + 6,736 = $17,520M against 6,111 + 6,005 = $12,116M, up 44.6%; goodwill increase 48,423 - 11,809 = $36,614M and goodwill plus intangibles 54,777 / 254,045 = 21.6% of assets; property, plant and equipment 89,483 / 42,602 - 1 = 110.0%; Cursor shares 391.0m of 13,579m = 2.88% at an implied 60,000 / 389.289 = $154.13 a share; Cursor revenue 608 / 47 x 365 = $4,722M annualised, so 60,000 / 4,722 = 12.7x; diluted shares 12,475 / 2,941 - 1 = 324%; the September quarter was 14,575 / 32,043 = 45.5% of trailing revenue — Q3 2026 — quarter ended 30 September 2026 · publ. 20 October 2026 · source ↗
    Method: The operands and the arithmetic are set out in full in the source line.
  14. ReportedThat was covered by $85,675 million of net listing proceeds and $51,834 million of new borrowing, against $39,845 million of repayments and a $1,153 million premium to retire old debt.
    SpaceX Q3 2026 results release (Form 8-K exhibit 99.1, 20 October 2026) — consolidated statements of operations, balance sheets and cash flows — Q3 2026 — quarter ended 30 September 2026 · publ. 20 October 2026 · source ↗
  15. Moat Explorer calcWhat is left is strong: $89,855 million of cash and marketable securities against $38,844 million of debt, a net cash position of $51,011 million.
    Moat Explorer calculation from SpaceX's Q3 2026 results release and market data — Q3 revenue mix Space $1,767M / Connectivity $5,248M / SI $7,560M of $14,575M = 12.1% / 36.0% / 51.9% (Q2: $962M / $4,291M / $2,561M of $7,814M = 12.3% / 54.9% / 32.8%); sequential revenue growth 14,575 / 7,814 - 1 = 86.5%; nine-month growth 27,083 / 13,714 - 1 = 97.5%; Q4 2025 revenue 18,674 - 13,714 = $4,960M and trailing-twelve-month revenue 4,960 + 27,083 = $32,043M; Q4 2025 net (4,937) - (2,590) = $(2,347)M and trailing net (2,347) + (413) = $(2,760)M; Q4 2025 income from operations (2,589) - (1,216) = $(1,373)M and trailing (1,373) + 705 = $(668)M; market capitalisation 13,579m shares x $147.79 = $2,007bn and price to trailing sales 2,007 / 32,043 = 62.6x; Q3 operating margin 2,791 / 14,575 = 19.1% and Adjusted EBITDA margin 8,809 / 14,575 = 60.4%; non-operating contribution to net income 4,404 - 2,791 = $1,613M (interest income 873 + other income 1,025 - interest expense 675 + tax benefit 390); capex as a share of revenue 19,593 / 14,575 = 134.4% and 48,069 / 27,083 = 177.5%; nine-month free cash flow 13,097 - 48,069 = $(34,972)M; SI share of capex 16,444 / 19,593 = 83.9% and 39,995 / 48,069 = 83.2%; Connectivity share of group income from operations 2,367 / 2,791 = 84.8%; Space research and development growth 1,225 / 849 - 1 = 44.3%; Connectivity operating margin 2,367 / 5,248 = 45.1% (Q2 1,656 / 4,291 = 38.6%; Q3 2025 1,190 / 3,097 = 38.4%); enterprise and government share 2,127 / 5,248 = 40.5% (Q2 42.1%, Q3 2025 35.9%); mass to orbit per launch 476 / 35 = 13.6 t (Q2 485 / 38 = 12.8 t; Q3 2025 525 / 44 = 11.9 t); days between launches 92 / 35 = 2.6; advertising share of SI 538 / 7,560 = 7.1% (Q3 2025 454 / 813 = 55.8%) and nine-month advertising 1,248 / 1,323 - 1 = -5.7%; SI income from operations before the Cursor charge 431 + 1,217 = $1,648M and SI operating margin 431 / 7,560 = 5.7%; cash and marketable securities 51,294 + 38,561 = $89,855M; total debt 2,698 + 36,146 = $38,844M of which related party 2,181 + 10,716 = $12,897M; net cash 89,855 - 38,844 = $51,011M; deferred revenue 10,784 + 6,736 = $17,520M against 6,111 + 6,005 = $12,116M, up 44.6%; goodwill increase 48,423 - 11,809 = $36,614M and goodwill plus intangibles 54,777 / 254,045 = 21.6% of assets; property, plant and equipment 89,483 / 42,602 - 1 = 110.0%; Cursor shares 391.0m of 13,579m = 2.88% at an implied 60,000 / 389.289 = $154.13 a share; Cursor revenue 608 / 47 x 365 = $4,722M annualised, so 60,000 / 4,722 = 12.7x; diluted shares 12,475 / 2,941 - 1 = 324%; the September quarter was 14,575 / 32,043 = 45.5% of trailing revenue — Q3 2026 — quarter ended 30 September 2026 · publ. 20 October 2026 · source ↗
    Method: The operands and the arithmetic are set out in full in the source line.
  16. ReportedManagement's phrase for the ambition is "maintaining a robust, investment-grade balance sheet", and on this snapshot the balance sheet is the least of the worries.
    SpaceX Q3 2026 results release (Form 8-K exhibit 99.1, 20 October 2026) — headline results and CFO commentary — Q3 2026 — quarter ended 30 September 2026 · publ. 20 October 2026 · source ↗
  17. Moat Explorer calcCapital spending ran at 134.4% of revenue in the quarter and 177.5% over nine months, which means the listing bought a few years of this pace and no more.
    Moat Explorer calculation from SpaceX's Q3 2026 results release and market data — Q3 revenue mix Space $1,767M / Connectivity $5,248M / SI $7,560M of $14,575M = 12.1% / 36.0% / 51.9% (Q2: $962M / $4,291M / $2,561M of $7,814M = 12.3% / 54.9% / 32.8%); sequential revenue growth 14,575 / 7,814 - 1 = 86.5%; nine-month growth 27,083 / 13,714 - 1 = 97.5%; Q4 2025 revenue 18,674 - 13,714 = $4,960M and trailing-twelve-month revenue 4,960 + 27,083 = $32,043M; Q4 2025 net (4,937) - (2,590) = $(2,347)M and trailing net (2,347) + (413) = $(2,760)M; Q4 2025 income from operations (2,589) - (1,216) = $(1,373)M and trailing (1,373) + 705 = $(668)M; market capitalisation 13,579m shares x $147.79 = $2,007bn and price to trailing sales 2,007 / 32,043 = 62.6x; Q3 operating margin 2,791 / 14,575 = 19.1% and Adjusted EBITDA margin 8,809 / 14,575 = 60.4%; non-operating contribution to net income 4,404 - 2,791 = $1,613M (interest income 873 + other income 1,025 - interest expense 675 + tax benefit 390); capex as a share of revenue 19,593 / 14,575 = 134.4% and 48,069 / 27,083 = 177.5%; nine-month free cash flow 13,097 - 48,069 = $(34,972)M; SI share of capex 16,444 / 19,593 = 83.9% and 39,995 / 48,069 = 83.2%; Connectivity share of group income from operations 2,367 / 2,791 = 84.8%; Space research and development growth 1,225 / 849 - 1 = 44.3%; Connectivity operating margin 2,367 / 5,248 = 45.1% (Q2 1,656 / 4,291 = 38.6%; Q3 2025 1,190 / 3,097 = 38.4%); enterprise and government share 2,127 / 5,248 = 40.5% (Q2 42.1%, Q3 2025 35.9%); mass to orbit per launch 476 / 35 = 13.6 t (Q2 485 / 38 = 12.8 t; Q3 2025 525 / 44 = 11.9 t); days between launches 92 / 35 = 2.6; advertising share of SI 538 / 7,560 = 7.1% (Q3 2025 454 / 813 = 55.8%) and nine-month advertising 1,248 / 1,323 - 1 = -5.7%; SI income from operations before the Cursor charge 431 + 1,217 = $1,648M and SI operating margin 431 / 7,560 = 5.7%; cash and marketable securities 51,294 + 38,561 = $89,855M; total debt 2,698 + 36,146 = $38,844M of which related party 2,181 + 10,716 = $12,897M; net cash 89,855 - 38,844 = $51,011M; deferred revenue 10,784 + 6,736 = $17,520M against 6,111 + 6,005 = $12,116M, up 44.6%; goodwill increase 48,423 - 11,809 = $36,614M and goodwill plus intangibles 54,777 / 254,045 = 21.6% of assets; property, plant and equipment 89,483 / 42,602 - 1 = 110.0%; Cursor shares 391.0m of 13,579m = 2.88% at an implied 60,000 / 389.289 = $154.13 a share; Cursor revenue 608 / 47 x 365 = $4,722M annualised, so 60,000 / 4,722 = 12.7x; diluted shares 12,475 / 2,941 - 1 = 324%; the September quarter was 14,575 / 32,043 = 45.5% of trailing revenue — Q3 2026 — quarter ended 30 September 2026 · publ. 20 October 2026 · source ↗
    Method: The operands and the arithmetic are set out in full in the source line.
  18. ReportedEach year of spending at that rate adds depreciation, and depreciation is what turns an adjusted-EBITDA business into a loss-making one: $8,809 million of adjusted EBITDA in the quarter became $2,791 million of operating income.
    SpaceX Q3 2026 results release (Form 8-K exhibit 99.1, 20 October 2026) — segment table: revenue, income from operations, Adjusted EBITDA and capital expenditure by segment — Q3 2026 — quarter ended 30 September 2026 · publ. 20 October 2026 · source ↗
Sources
Generated October 21, 2026