Sun. Dec 3rd, 2023
SpaceX’s Starlink Achieves Breakeven Cash Flow

SpaceX’s CEO Elon Musk announced on Thursday that the company’s satellite internet business unit, Starlink, has achieved breakeven cash flow. Musk shared the news on X, the social media platform that he owns. He also mentioned that Starlink is now the majority of all active satellites and will have launched the majority of all satellites from Earth by next year.

It is unclear whether the breakeven milestone refers to a single quarter or a specific period of time. Nevertheless, this accomplishment raises speculation about the possibility of SpaceX taking Starlink public through an IPO. Musk had previously stated that the company would consider going public once the cash flow became predictable.

Earlier this year, SpaceX President and COO Gwynne Shotwell hinted at the improving economics of Starlink by stating that the unit had already achieved a cashflow positive quarter in 2022.

Currently, Starlink’s mega-constellation consists of around 5,000 satellites, all launched by SpaceX rockets. This vertical integration has allowed the company to expand the Starlink network rapidly and outpace its competitors. The network now serves approximately two million subscribers across various industries including consumer, maritime, and aviation.

Starlink has also made headlines for its involvement in international conflicts, including the war in Ukraine and the recent conflict between Israel and Hamas. Recognizing the military’s interest in satellite internet capabilities, SpaceX recently created a defense-focused version of Starlink called Starshield.

With a valuation of about $150 billion, SpaceX reported revenues of $1.4 billion in the previous year.