SpaceX CEO Elon Musk announced on Thursday that the company’s Starlink satellite internet division has achieved breakeven cash flow. Musk shared the news on his social media platform, X (formerly known as Twitter), and commended the team for their excellent work. However, he did not specify whether this was achieved on an operating basis or within a specific time frame.
Starlink is the global communications network developed by Musk’s company, with over 5,000 satellites launched and counting. It began offering Starlink services about three years ago, initially targeting the consumer market. SpaceX has recently reported having over two million subscribers and has expanded its services into various markets, including national security, enterprise, mobility, maritime, and aviation, disrupting the existing satellite communications sector.
Earlier in the year, SpaceX President and Chief Operating Officer Gwynne Shotwell mentioned that Starlink had a positive cash flow quarter in 2022, and the overall SpaceX company reportedly turned a profit in the first quarter of 2023. The valuation of SpaceX has risen to approximately $150 billion, with Starlink playing a crucial role in the company’s economic objectives.
Two years ago, Musk highlighted that making Starlink “financially viable” required overcoming significant negative cash flow. Musk has discussed the possibility of spinning off Starlink and taking it public through an initial public offering (IPO) once the business is in a stable position. However, the timing of a Starlink IPO remains uncertain. In 2022, Musk informed employees that going public wasn’t likely until 2025 or later, stating that being a public company can be challenging and distracting in terms of stock price fluctuations.
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