SpaceX Financials Revealed: Starlink Carries the Company While xAI Burns $9.5B

SpaceX's internal financial data has been disclosed for the first time. Starlink is single-handedly supporting the entire company with a 63% EBITDA margin, while xAI burned through $9.5 billion through Q3. The IPO targets a $1.75 trillion valuation.

Justin·April 24, 2026·4 min read

AI Summary

SpaceX's internal financials have been disclosed ahead of its IPO, revealing a dramatic reversal from ~$8B net profit in 2024 to a ~$5B net loss in 2025 on $18.5B in revenue. Starlink is the clear profit engine, generating 61% of total revenue with a 63% EBITDA margin, while the xAI segment — merged in February 2026 — burned through $9.5B through Q3 on only $210M in revenue. SpaceX is targeting a $1.75 trillion valuation (109x P/S) in what would be the largest IPO in U.S. history.

From ~$8B profit in 2024 to ~$5B loss in 2025 — segment data leaks ahead of IPO

SpaceX's private financial data has been disclosed publicly for the first time ahead of its anticipated IPO, sending shockwaves through the market. The biggest surprise is a dramatic reversal in profitability. SpaceX, which posted roughly $8 billion in net profit in 2024, reportedly generated over $18.5 billion in revenue in 2025 yet recorded a net loss of approximately $5 billion.

The primary driver is M&A activity. Following the merger with Elon Musk's AI venture xAI in February 2026, xAI-related costs were consolidated into SpaceX's income statement. Capital expenditures also surged to $20.7 billion, exceeding total revenue, and company-wide free cash flow came in at approximately negative $14 billion.

Starlink: 61% of Total Revenue with 63% EBITDA Margin

The segment-level data is even more striking. According to internal documents reported by The Information, Starlink (satellite internet) generated $11.4 billion — 61% of total company revenue — on its own. Its EBITDA margin stands at 63%, far surpassing global telecom carriers (30–40%) and legacy satellite operators such as Viasat and Eutelsat (around 20%). This margin has expanded rapidly from 41% in 2023 to 50% in 2024.

The core growth engine behind Starlink is explosive subscriber growth.

Early 2025: 4.5 million subscribers
End of 2025: 9 million subscribers (doubled)
February 2026: Surpassed 10 million subscribers

Margin expansion reflects the extremely low marginal cost of adding new subscribers, combined with the growing share of high-margin B2B contracts — including government and defense-focused Starshield deployments for aviation and maritime use. According to the formal prospectus published on April 21, Starlink's quarterly revenue reached $4.42 billion, and SpaceX holds over $22.8 billion in cash.

xAI Burns $9.5B Through Q3 on Just $210M in Revenue

By contrast, the xAI segment burned through approximately $9.5 billion through Q3 2025, while generating only $210 million in revenue over the same period.

The launch segment fared little better, with revenue growth of just 8% and free cash flow of negative $3 billion. The data makes one conclusion unmistakable: SpaceX = Starlink.

$1.75T Valuation, 109x P/S: The Valuation Dilemma

SpaceX confidentially filed an S-1 with the SEC in March 2026, targeting a valuation of $1.75 trillion — which would make it the largest IPO in U.S. history. Based on 2025 revenue, the implied price-to-sales (P/S) multiple is 109x, with an EBITDA-based multiple of 266x.

Meta: 16x P/S
Alphabet: 25x P/S
NVDA: 36x P/S
Tesla: 119x P/S
SpaceX: 109x P/S (exceptionally elevated)

The market's central question ultimately comes down to one thing: can Starlink's growth potential justify the astronomical cash burn across the xAI and launch segments? Intensifying competition from Amazon's Project Kuiper and the risk of delays in Starship V3 development are also cited as critical variables in the IPO pricing equation.