SpaceX Files for IPO with Starlink as Only Profitable Segment

SpaceX filed paperwork for an initial public offering that would value the company at $1.77 trillion. The filing shows the satellite internet unit Starlink as the sole profitable business, while the space and artificial intelligence segments posted combined first-quarter revenue of $1.4 billion and operating losses of $3.1 billion.

Starlink added customers rapidly, reaching 10.3 million broadband subscribers, more than double the total from a year earlier. Average revenue per user fell to $66 per month in the first quarter from $86 a year earlier, and operating income rose only modestly despite the subscriber growth.

The company plans to use its Starship rocket, still in testing, to launch larger V3 satellites and expand capacity. SpaceX has spent more than $15 billion developing Starship and has recorded a cumulative deficit of $41.3 billion since its founding in 2002.

Chief financial officer Bret Johnsen told investors during a roadshow that the company aims to grow from 10 million customers to hundreds of millions worldwide. He also said SpaceX expects to offer 5G-equivalent service to consumer devices within two years.

Starlink is moving into urban and suburban markets where it will compete directly with established broadband providers. A research firm president noted that terrestrial companies can respond with price cuts and bundling, and that terminal production costs remain higher than those for conventional modems.

The company operates 9,600 satellites serving customers in 164 countries and territories. A spokesperson did not respond to a request for comment on the IPO outlook.