The SpaceX IPO Prospectus: 15 Key Insights from the S-1 Filing

On June 12, it’s set to happen: SpaceX, together with its subsidiaries X and xAI, plans to go public at a targeted valuation of 1.75 trillion dollars. The plan is to raise between 75 and 80 billion dollars to fund future expansion plans and cover current losses. To prepare for this, Elon Musk’s company has now published its IPO prospectus, offering deep insights into SpaceX’s operations. Here are the highlights and lowlights:

Revenues, Profits and Losses

1. Consolidated revenue 2025: 18.7 billion dollars – but operating loss of 2.6 billion SpaceX generated consolidated revenue of 18,674 million dollars in 2025, but recorded an operating loss of 2,589 million dollars. Adjusted EBITDA stood at 6,584 million dollars. In the first quarter of 2026, quarterly revenue grew to 4,694 million dollars, while the operating loss reached 1,943 million dollars.

2. Starlink is the cash cow – with 49.8 percent growth The Connectivity segment (primarily Starlink) generated revenue of 11,387 million dollars in 2025 with an operating profit of 4,423 million dollars – an increase of 49.8 percent year-over-year. EBITDA grew by 86.2 percent to 7,168 million dollars. With approximately 10.3 million Starlink subscribers across 164 countries, Starlink is the profitable growth driver.

3. The Space segment is burning cash for Starship The actual rocket business (Falcon, Dragon, Starship) generated only 4,086 million dollars in revenue in 2025 and an operating loss of 657 million dollars. The reason: 3,004 million dollars alone flowed into research and development of Starship in 2025. In Q1 2026, an additional 930 million dollars were invested.

Subsidiary xAI

4. xAI acquisition retroactively integrated into the balance sheet SpaceX acquired xAI (X.AI Holdings Corp.) on February 2, 2026 – including xAI’s prior acquisition of X (formerly Twitter) on March 28, 2025. Since these were transactions between affiliated entities, all prior periods were retroactively reported on a consolidated basis.

5. AI segment: 6.4 billion loss in 2025 The AI segment generated revenue of 3,201 million dollars in 2025 but reported an operating loss of 6,355 million dollars. In Q1 2026, losses rose to 2,469 million dollars on revenue of 818 million dollars. In the first quarter of 2026 alone, 7,723 million dollars in capex flowed into the AI segment – more than into Space and Connectivity combined.

6. 1.3 billion supported accounts on X and Grok The integrated AI platforms X and Grok counted over 1.3 billion supported accounts in the twelve months ending March 31, 2026, of which around 550 million were MAUs. About 117 million MAUs used Grok’s AI features. 350 million posts are generated daily.

7. Anthropic pays 1.25 billion dollars per month for SpaceX compute A remarkable twist: In May 2026, SpaceX signed a Cloud Services Agreement with Anthropic. Anthropic pays 1.25 billion dollars monthly through May 2029 for compute capacity at COLOSSUS and COLOSSUS II. Over the term, that amounts to roughly 45 billion dollars – ironic that a direct competitor to Grok is renting Musk’s data centers.

Expansion Plans in Space

8. Orbital AI Compute: millions of satellites starting in 2028 The most ambitious project: starting in 2028, millions of AI compute satellites are to be deployed in sun-synchronous orbit, powered by solar energy and passively cooled by radiating heat into space. The goal: to deploy 100 gigawatts of annual compute capacity into orbit – equivalent to approximately one million tons of payload per year.

9. V3 satellites from mid-2026: 1 terabit per second The next Starlink generation V3 is set to be rolled out using Starship in the second half of 2026 – with a downlink capacity of one Tbps per satellite. A single Starship launch can transport up to 60 V3 satellites, representing a twentyfold capacity increase compared to a Falcon 9 launch.

10. Lunar Mass Driver and lunar economy SpaceX is planning a “Lunar Mass Driver” – an electromagnetic acceleration system on the lunar surface that launches payloads into space without rockets. The lunar economy is intended to include cargo transport, manufacturing, and energy production on the Moon – a stepping stone to Mars colonies.

11. Terafab: one terawatt of chip production annually Together with Tesla (March 2026) and Intel (April 2026), SpaceX launched the Terafab project. Long-term goal: one terawatt of compute hardware per year. An important caveat: according to the prospectus, the specific projects, timelines, and investments have not yet been finalized.

Cursor Deal

12. Cursor option worth 60 billion dollars In April 2026, SpaceX signed a compute and option agreement with Anysphere (Cursor). SpaceX holds the option to acquire Cursor at an implied equity value of 60 billion dollars in Class A shares. If SpaceX exits, it faces a 1.5 billion dollar termination fee plus an 8.5 billion dollar deferred services fee – a total of 10 billion dollars in penalty payments.

Competition and Market

13. Addressable market: 28.5 trillion dollars SpaceX estimates its Total Addressable Market at 28.5 trillion dollars: 370 billion dollars in Space, 1.6 trillion dollars in Connectivity, and 26.5 trillion dollars in AI – of which 22.7 trillion dollars in enterprise applications alone. China and Russia are explicitly excluded. For comparison: 75 percent of all active maneuverable satellites already belong to SpaceX. Since 2023, SpaceX has transported over 80 percent of the world’s payload mass into orbit.

Biggest Risks

14. Starship dependency as critical bottleneck The most important risk factor: the entire growth strategy hinges on Starship’s success. Delays would slow the rollout of V3 satellites, the mobile expansion, and especially the orbital AI compute program. So far, there have been eleven Starship test flights; the first productive payload launch is expected in the second half of 2026.

15. Dual-class structure and Musk’s control Perhaps the politically most sensitive information for investors: through Class B shares (10 votes per share versus one vote for Class A), Elon Musk holds the voting majority and can determine a majority of the board. SpaceX is classified as a “Controlled Company” under Nasdaq rules and takes advantage of exemptions from corporate governance standards. Added to this are risk factors regarding spectrum licenses (EchoStar deal: AWS-3, AWS-4, H-Block, approved by the FCC on May 12, 2026), FAA approvals for Starship launches, and the high level of debt through the SpaceX Credit Facility and SpaceX Bridge Loan.