SpaceX shares fell about 6% in after-hours trading on Tuesday after the company reported its first quarterly earnings since its public listing. The decline came despite quarterly revenue exceeding Wall Street expectations, as investors weighed continued losses and higher capital spending on artificial intelligence infrastructure.

The stock had gained 9.43% during regular trading, closing at $125.33 before retreating following the earnings announcement.

Revenue Beats Estimates Despite Quarterly Loss

SpaceX reported $7.8 billion in revenue for the second quarter, exceeding analysts' consensus estimate of $6.9 billion. The company, however, posted a net loss of $541 million during the quarter.

Chief Financial Officer Bret Johnsen said on the earnings call that SpaceX expects to reach $100 billion in annual recurring revenue (ARR) by the end of 2026. He also said the company holds about $100 billion in cash, cash equivalents, and marketable securities, providing significant financial flexibility for future investments.

AI Investment Drives Higher Capital Spending

The company reported $18.4 billion in capital expenditures during the quarter, up from $10.1 billion in the previous quarter. Of the total, $15.8 billion was allocated to artificial intelligence infrastructure and related investments.

Market analysts said the elevated spending reflects SpaceX's continued focus on expanding its AI and computing capabilities. They noted that while the higher expenditure may raise investor concerns in the short term, it also signals accelerated infrastructure development.

Earlier this year, SpaceX agreed to acquire AI coding startup Cursor in an all-stock deal valued at $60 billion, further strengthening its AI portfolio.

Lock-Up Period Opens for Early Investors

The earnings release also activates the first phase of the company's post-IPO lock-up schedule. Eligible pre-IPO investors will be allowed to sell up to 20% of their restricted shares beginning Aug. 6. Any additional share sales will depend on the stock meeting specified performance targets outlined in the IPO agreement.

The earnings report offers investors the first detailed look at SpaceX's financial performance as a publicly traded company, highlighting both strong revenue growth and continued investment in long-term expansion.