SpaceX Grew Revenue 33% Last Year -- Is That Enough to Justify the Company's $1.77 Trillion Valuation?
Written by Keith Noonan for The Motley Fool -> SpaceX posted solid sales growth last year, but the company's valuation profile already prices in big wins. SpaceX's forward price-to-sales multiple looks huge compared to a highly profitable tech leader like Nvidia. On June 12, S
SpaceX posted solid sales growth last year, but the company's valuation profile already prices in big wins.
SpaceX's forward price-to-sales multiple looks huge compared to a highly profitable tech leader like Nvidia.
On June 12, SpaceX will complete its initial public offering (IPO) and mark the biggest-ever debut by market capitalization for a publicly traded company. The space-tech company is on track to sell more than 555 million shares at a fixed price of $135 per share -- valuing the business at $1.77 trillion.
SpaceX commands leading positions in commercial launching services and satellite-based broadband internet. The company accounted for more than 80% of U.S. space rocket launches last year, and it captured roughly 90% of the commercial launch market. SpaceX's Starlink internet service has also now surpassed 12 million subscription customers across 160 countries.
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With these growth tailwinds, the company's revenue grew 33% annually in 2025 to hit $18.7 billion. Is SpaceX's expansion rate strong enough to support a $1.77 trillion valuation?
At a valuation of roughly $1.77 trillion, SpaceX is valued at approximately 94.7 times last year's sales. Meanwhile, the business recorded a net loss of $4.9 billion in the year. On the other hand, the business actually recorded a net profit of roughly $791 million in 2024.
SpaceX has already demonstrated that it can turn a profit, but questions remain about the margin outlook as the company continues to invest heavily to drive sales growth. In addition to high costs associated with rocket launching and other space tech industries, the artificial intelligence (AI) component that accounts for the other key part of the business is also highly capital-intensive. Even though SpaceX posted a profit in 2024, there's a good chance that high levels of spending to lay the foundations for future growth will present big pressures on earnings for the foreseeable future.
