SpaceX Business Breakdown: Every Segment, Project and Revenue Share

SpaceX (Nasdaq: SPCX) became a listed company on June 12, 2026, and published its first quarterly results on August 4. The filings describe a company that is now three businesses: a rocket company, a satellite internet company, and, since its merger with xAI in February 2026, an AI company that also owns the social network X. This report breaks down what each business sells, the projects inside it, and how much of total revenue each one produces.

All financial figures come from SpaceX's Q2 2026 earnings release, its Form 10-Q for the quarter ended June 30, 2026, and its IPO prospectus (Form S-1/A), all filed with the US Securities and Exchange Commission (SEC). Figures are in US dollars. Where a percentage or ratio is our own calculation, the inputs are shown. If segment reporting is new to you, our guide on how to read an annual report covers where these tables sit in a filing.

---

1. The Company in One Table

SpaceX reports seven revenue lines grouped into three segments. A segment is a part of the business that management tracks separately, with its own revenue, costs and profit.

Share of total = line revenue ÷ $7,814M. Source: Q2 2026 10-Q, Note 3.

Total revenue grew 92% from $4,071 million in Q2 2025. By segment, Connectivity was 54.9% of Q2 revenue, AI 32.8% and Space 12.3%.

Starlink ConsumerConnectivity31.8% · $2,485M

AI Solutions & InfrastructureAI28.1% · $2,194M

Starlink Enterprise & GovernmentConnectivity23.1% · $1,806M

Launch ServicesSpace8.3% · $648M

X AdvertisingAI4.7% · $367M

Launch & DevelopmentSpace4.0% · $314M

Share of $7,814 million total revenue. Calculated from the Q2 2026 Form 10-Q, Note 3.

1.1 How the Mix Has Moved

One quarter can mislead, because a single large contract can move the mix. The prospectus gives the full-year 2025 split, which shows what SpaceX looked like before the AI compute contracts began.

FY2025 figures from the S-1/A, Note 3; quarterly figures from the Q2 2026 earnings release. Shares calculated against each period's total.

In 2025, Space was 21.9% of revenue, Connectivity 61.0% and AI 17.1%. By Q2 2026, AI's share had nearly doubled to 32.8%. Almost all of that came from one new line of business, renting data-centre capacity, covered in section 4. Space's share fell from 21.9% to 12.3%. Some of that is the larger total, and some is timing: the first half of 2026 had 17 customer launches, against 21 a year earlier.

---

2. Space Segment

Q2 2026: revenue $962 million, operating loss $542 million, capital expenditure $1,174 million.

The Space segment designs, builds and launches rockets. The 10-Q describes its revenue as coming from two sources.

• Launch Services: fixed-price contracts, typically one to five years, to put a customer's satellite into orbit on Falcon 9 or Falcon Heavy. Revenue is recognised on the day the payload reaches its intended orbit.
• Launch & Development: contracts with government agencies that combine vehicle development with launch and mission services, using Falcon 9, Falcon Heavy, Starship and Dragon. These run from one to fourteen years, and revenue is recognised gradually as SpaceX incurs costs on the work.

2.1 Projects in the Space Segment

Sources: S-1/A, Business section; Q2 2026 earnings release; 10-Q Note 3 and MD&A.

In 2025, SpaceX also flew all five US crew and cargo missions to the International Space Station for NASA. The prospectus says it expects Starship to begin delivering payloads to orbit in the second half of 2026.

2.2 Why Space Revenue Understates the Launch Business

The operating data shows the scale of this. In Q2 2026, SpaceX flew 38 launches: 10 for customers and 28 for itself (27 Falcon, 1 Starship). That is 73.7% of launches and 81.9% of the 485 metric tons it put into orbit (397 tons internal). Over the first half of 2026, SpaceX flew 78 launches, of which 17 were for customers.

So the Space segment's revenue measures the external business only. Most of the rocket fleet's output feeds Starlink, and the prospectus says SpaceX expects to allocate "a significant amount" of launch capacity to the AI segment in future, a reference to its plan for satellite-based data centres.

Launch Services revenue per customer launch can be estimated by dividing the line by the launch count. In Q2 2026 it was $648 million ÷ 10 = $64.8 million, against $490 million ÷ 9 = $54.4 million in Q2 2025. The first-half 2026 figure is $978 million ÷ 17 = $57.5 million. This is an average, not a price. It mixes Falcon 9 and Falcon Heavy missions, and some government launch revenue sits in the other Space line. The 10-Q attributes the Q2 increase to "a favorable customer mix shift."

2.3 What Starship Costs

Space segment research and development (R&D) spending was $1,076 million in Q2 2026, higher than the segment's entire revenue of $962 million. The 10-Q says this R&D "mainly relate[s] to the development, build, and testing of Starship." Of the $383 million year-on-year increase, $311 million was production and engineering and $73 million was launch and test costs.

For all of 2025, the prospectus puts Starship R&D at $3,004 million. The segment's 2025 operating loss was $657 million, so excluding Starship R&D it would have shown operating income of about $2,347 million ($3,004 million minus $657 million). In 2024, the segment had operating income of $21 million.

SpaceX's stated goal for Starship is to cut the cost of reaching orbit by 99% or more compared with the historical average. The prospectus gives that historical average as $18,500 per kilogram, citing NASA, and says the first Falcon 9 reduced it to about $2,700 per kilogram.

---

3. Connectivity Segment (Starlink)

Q2 2026: revenue $4,291 million, operating income $1,656 million, capital expenditure $1,367 million.

Connectivity is Starlink: a network of more than 10,200 satellites in low Earth orbit, according to the 10-Q, serving 167 countries, territories and other markets. It is the only one of the three segments with an operating profit. Its Q2 operating margin (operating income ÷ revenue) was 38.6%, and its segment Adjusted EBITDA margin was 60.5% ($2,597 million ÷ $4,291 million).

The segment has four businesses.

3.1 Consumer Broadband

Home and roaming internet sold directly through Starlink.com. Customers pay a monthly subscription that varies by country and speed, and usually buy a terminal kit upfront. According to the prospectus, median peak-hour download speed for residential users was 225 Mbps and median latency about 25 milliseconds as of March 31, 2026.

ARPU, average revenue per user, is the monthly subscription revenue earned per subscriber. Subscribers doubled (up 101.2%) over the year while ARPU fell 22.4%. The 10-Q attributes the fall to "international expansion and the addition of lower priced service plans." Consumer revenue therefore grew 44.4%, well below subscriber growth.

The subscriber and ARPU figures can be used to split the Consumer line. Average subscribers in Q2 were (10.3 + 12.0) ÷ 2 = 11.15 million. At $66 a month for three months, that is about $2.21 billion of subscription revenue, leaving roughly $0.28 billion of the $2.49 billion Consumer line for other items such as terminal kits. The filing does not publish this split, so treat it as an estimate. It does disclose that all $461 million of Q2 "products" revenue, which is hardware, belongs to Connectivity.

Two definitions matter here. A "subscriber" is a service line, not a person or household, so one family with a home plan and a roaming plan counts as two. And the count excludes enterprise and government customers on negotiated contracts, whose revenue sits in the next line.

3.2 Enterprise and Government

This line grew fastest in Connectivity: up 108.3% year on year to $1,806 million. The 10-Q attributes $939 million of the Q2 increase to "government, aviation, maritime, and other enterprise businesses." The filings do not split the line further. It contains:

• Enterprise Solutions: connectivity for airlines, cruise ships, shipping, mining, agriculture and retail. Customers named in the prospectus include United Airlines, Carnival, Maersk and John Deere. In Q2 the company signed American Airlines and switched on service with Southwest, Virgin Atlantic, Iberia and Aer Lingus. The prospectus states that since 2023, no enterprise customer paying more than $750,000 a year has voluntarily cancelled.
• Government Solutions: connectivity for civil agencies and foreign governments. Examples in the prospectus include FEMA (disaster recovery), NOAA (environmental monitoring), and the governments of the Philippines, Jamaica and Ecuador.
• Starshield: a separate, secure satellite network built for US government and national security customers. In Q2, SpaceX was awarded more than $6 billion in multi-year US government contracts for Starshield, mainly two Space Force contracts for low-Earth-orbit communications and sensing constellations. Revenue on these contracts is recognised over time as costs are incurred, so the $6 billion will be booked over several years.
• Starlink Mobile: satellite connectivity sent straight to ordinary smartphones, sold through mobile network operators such as T-Mobile in the US. It is covered next.

3.3 Starlink Mobile

Starlink Mobile fills gaps in mobile phone coverage. Phones connect directly to about 650 "V1 Mobile" satellites for text messages, light data and app-based calls (WhatsApp, FaceTime). SpaceX is paid either a fixed fee or a per-user fee by roughly 30 mobile operators on six continents. According to the prospectus, about 7.4 million unique devices used the service each month as of March 31, 2026. New operator partners in Q2 included SoftBank, NTT Docomo and Spark NZ.

The main project here is spectrum, the radio frequencies phones use. In September 2025, SpaceX agreed to buy spectrum licences from EchoStar: 50 MHz of AWS-4 and H-block, plus up to 15 MHz of AWS-3, in the US, and certain global mobile satellite licences. The FCC approved the transfer on May 12, 2026, and the transaction closed on May 22. SpaceX expects this spectrum, used by next-generation satellites, to support broadband data and 5G service to phones.

Starlink Mobile revenue is reported inside Enterprise & Government and is not disclosed separately.

3.4 Next-Generation Satellites

The next Starlink satellite, V3, is designed for 1 terabit per second of downlink capacity. It is too large for Falcon 9 and launches on Starship, up to 60 at a time. SpaceX says one Starship launch can add about twenty times the downlink capacity of one Falcon 9 launch. The first 20 production V3 satellites flew on Starship Flight 13 in July 2026. Connectivity R&D rose 105.6% year on year to $294 million in Q2, of which $90 million was next-generation satellite development. How the network works, and SpaceX's plan to put AI data centres on similar satellites, is covered in our Starlink and orbital data centres primer.

---

4. AI Segment (xAI and X)

Q2 2026: revenue $2,561 million, operating loss $1,257 million, capital expenditure $15,828 million.

The AI segment is the former xAI, which SpaceX acquired on February 2, 2026. xAI had itself acquired X (formerly Twitter) in March 2025. The 10-Q describes the segment as spanning the Grok models, AI products for consumers and businesses, the X platform, and AI computing infrastructure.

It has two revenue lines. Advertising is simple: ads shown on X. AI Solutions & Infrastructure contains four different businesses:

1. Premium subscriptions to X and Grok (X Premium, SuperGrok and their tiers)
2. Data licensing
3. API access to Grok models for developers
4. Cloud services: renting data-centre compute to other companies

4.1 What Drove the Jump

AI revenue rose from $737 million in Q2 2025 to $2,561 million in Q2 2026. The 10-Q breaks down the $1,883 million increase in AI Solutions & Infrastructure:

Source: Q2 2026 10-Q, MD&A. "Other" is the residual we calculated.

The 10-Q says AI infrastructure revenue rose $1,600 million "as we began to offer cloud services to customers." That puts compute rental at about 20.5% of SpaceX's total Q2 revenue ($1,600 million ÷ $7,814 million), more than the whole Space segment. It arrived in a single quarter.

4.2 The Compute Projects

Sources: S-1/A, Business section; Q2 2026 earnings release and 10-Q.

The only cloud customer named in the prospectus is Anthropic. In May 2026, SpaceX signed Cloud Services Agreements giving Anthropic access to about 325,000 NVIDIA GPUs across Colossus and Colossus II. Anthropic agreed to pay $1.25 billion a month through May 2029, at a reduced fee while capacity ramped up in May and June. At the full rate that is $3.75 billion a quarter, or $15 billion a year, equal to 80% of SpaceX's entire 2025 revenue of $18,674 million.

The 10-Q also discloses a "Customer B" that provided 19.5% of Q2 revenue, about $1,524 million, all of it in the AI segment. SpaceX does not name Customer B. Its size is close to the $1,600 million of new infrastructure revenue, which means one customer accounted for most of the new cloud business.

For background on why AI developers rent compute instead of building it, see our explainer on AI data centre economics. Our piece on who competes with NVIDIA covers the chips inside these clusters.

4.3 Grok, X and Cursor

Grok is xAI's family of large language models. Grok 4.5 was released in July 2026. The earnings release says it incorporates a 1.5 trillion-parameter "V9" foundation model and was trained alongside Cursor. The prospectus lists consumer tiers (SuperGrok Lite, SuperGrok, SuperGrok Heavy), business tiers (Grok Business, Grok Enterprise), a government offering (xAI Gov), a developer API, and Grok Voice.

X earns money from advertising and from Premium subscriptions. The prospectus reports about 550 million combined monthly active users across X and Grok as of March 31, 2026, of whom about 117 million used Grok's AI features. X advertising was $367 million in Q2 2026, down 13.8% from $426 million a year earlier. The 10-Q attributes the drop to a move to a new advertising platform that "impacted ad sales for a short period of time." The longer trend is also down: advertising was $2,323 million in 2023, $1,728 million in 2024 and $1,844 million in 2025.

Cursor, an AI coding tool made by Anysphere, Inc., was acquired on August 14, 2026, after the quarter ended. SpaceX paid in stock: 389.3 million Class A shares for Cursor's shares plus 1.75 million for vested restricted stock units, based on an implied equity value of $60 billion. It also took over about 29.1 million unvested restricted stock units and 44.4 million options. Cursor's revenue will first appear in Q3 2026 results. The prospectus says SpaceX values Cursor for its developer interaction data, which it expects to improve Grok's training.

4.4 The Cost Side

AI segment costs were $3,818 million in Q2, against revenue of $2,561 million. R&D alone was $2,178 million, mostly infrastructure and cloud computing costs for training Grok. The operating loss narrowed from $2,469 million in Q1 to $1,257 million in Q2, and segment Adjusted EBITDA turned positive at $1,146 million.

The larger number is capital spending. AI capital expenditure was $15,828 million in one quarter, 6.2 times the segment's revenue. First-half AI capex was $23,551 million, more than all of SpaceX's capex for 2025 ($20,737 million). For how power supply limits this kind of build-out, see the AI energy bottleneck.

---

5. Profit and Cash by Segment

Revenue share and profit share point in different directions. The table puts the three segments side by side for Q2 2026.

Source: Q2 2026 earnings release, segment tables. Margins calculated.

Starlink carries the rest of the company. Space and Connectivity together had operating income of $1,114 million in Q2. AI's loss of $1,257 million more than cancels that out.

Below the operating line, SpaceX paid $629 million of interest, of which $327 million went to related parties, and earned $340 million of interest income on its cash. Net loss was $541 million, compared with $1,008 million in Q2 2025. For the first half, the net loss was $4,817 million. That figure includes $1,962 million of "other expense," which the 10-Q attributes mainly to losses on paying off debt early and unrealised losses on digital assets. SpaceX held $1,098 million of digital assets at June 30.

5.1 Cash Flow and Funding

Operating cash flow for the first half of 2026 was $3,466 million. Capital expenditure over the same period was $28,476 million. Subtracting one from the other gives a cash shortfall of about $25.0 billion in six months. The reported capex figure may not match cash paid in the period exactly, so treat this as approximate.

The gap was funded from outside:

• IPO (June 2026): 638.9 million Class A shares at $135.00, for net proceeds of $85,675 million.
• Bonds (June 26, 2026): $25 billion of investment-grade senior notes in five tranches maturing 2031 to 2056, at a weighted average interest rate of 5.855%. That is about $1.46 billion of interest a year on the bonds alone.

At June 30, SpaceX held $93,522 million in cash and $6,487 million in marketable securities, a combined $100.0 billion. Debt and finance leases totalled $39,364 million, of which $13,329 million was owed to related parties. The filings do not name those parties in the sections reviewed here.

Backlog, revenue already contracted but not yet recognised, was $47,461 million at June 30, up from $28,377 million at December 31, 2025. SpaceX expects about 56% of it, roughly $26.6 billion, to be recognised within a year. The filings do not split backlog by segment.

---

6. Customer Concentration

Two customers each provided more than 10% of revenue in Q2 2026:

Source: 10-Q and S-1/A, Note 3. Dollar amounts calculated from the percentages.

SpaceX does not name either customer. Customer A buys from all three segments and has provided between 20.9% and 25.2% of revenue in each year from 2023 to 2025. Together, the two customers accounted for 37.8% of Q2 revenue. Concentration like this means SpaceX's revenue depends on a small number of buying decisions.

---

7. Strengths and Risks in the Filings

This section lists what the documents themselves show, without a view on the share price. Our guide to economic moats explains the framework behind the first list.

What the filings show working:

• Starlink is large, growing and profitable. Connectivity revenue grew 65.8% year on year with a 38.6% operating margin, and subscribers doubled to 12.0 million.
• SpaceX owns its launch capacity. It deploys its own satellites at cost and flew 78 launches in six months, 61 of them internal.
• Enterprise and government demand is broad. That line more than doubled, with named airline, shipping and government customers, over $6 billion of new Starshield awards, and no voluntary cancellations by large enterprise customers since 2023.
• The balance sheet is liquid. $100 billion of cash and securities against $39.4 billion of debt at June 30.

What the filings show as risks:

• AI spending is far ahead of AI revenue. $23.6 billion of AI capex in six months, against $3.4 billion of AI revenue.
• The fastest-growing revenue can be cancelled at short notice. Cloud agreements can end on 90 days' notice after the ramp period, and one unnamed customer provided 19.5% of Q2 revenue.
• Starlink is earning less per user. ARPU fell from $85 to $66 in a year as growth moves to lower-priced markets and plans.
• Starship spending keeps rising. Space R&D exceeded Space revenue in Q2, and payload delivery to orbit is still an expectation for the second half of 2026, not a result.
• X advertising is shrinking. Down 13.8% year on year, and down from $2.3 billion in 2023.
• The group is loss-making. Net loss of $4.8 billion in the first half, with dilution from new shares, including about 391 million issued for Cursor.

For a sense of scale: at the $135 IPO price, the 13.18 billion Class A and Class B shares outstanding on June 30 were worth about $1.78 trillion. Q2 revenue multiplied by four is $31.3 billion. That is a snapshot at one price on one date, not a valuation. For how to think about that gap, see Valuation 101.

---

8. Reading the Next Report

Five disclosures will show whether the Q2 mix holds:

1. AI Solutions & Infrastructure revenue in Q3. The first full quarter of cloud contracts at the full rate, and the first quarter including Cursor.
2. Whether Customer B's share rises or falls, and whether more cloud customers appear.
3. Starlink subscriber growth against ARPU. Two quarters of flat ARPU at $66 would suggest the decline has levelled off.
4. The first Starship customer or orbital payload launch, which would begin moving Starship from R&D cost towards revenue.
5. Space revenue per customer launch, which moves with mission mix and the timing of government contract work.

---

Key Takeaways

• SpaceX has three segments and seven revenue lines. In Q2 2026, Connectivity was 54.9% of $7,814 million of revenue, AI 32.8% and Space 12.3%.
• Starlink consumer subscriptions are the largest single line at 31.8% of revenue. Subscribers reached 12.0 million while ARPU fell 22.4% to $66 a month.
• Cloud compute rental went from nothing to about $1.6 billion in one quarter, 20.5% of total revenue, and one unnamed AI-segment customer provided 19.5% of revenue.
• 28 of SpaceX's 38 launches in Q2 carried its own satellites and produced no Space revenue, so the Space segment's 12.3% share understates the launch business.
• Connectivity earned $1,656 million of operating income, while Space lost $542 million (mostly Starship) and AI lost $1,257 million.
• AI capex was $15.8 billion in Q2, 6.2 times AI revenue. First-half spending was funded by an $85.7 billion IPO and $25 billion of bonds.
• Cursor ($60 billion in stock, closed August 14) and Mesh Optical (closed July 6) will first appear in Q3 2026 results.

---

Disclaimer

This article is for educational purposes. The author holds no position in SpaceX (SPCX). It is not investment advice. Please do your own research and consult a SEBI-registered investment adviser, or a registered adviser in your jurisdiction, before making investment decisions. All financial data is from SpaceX's SEC filings listed below. Calculated figures are identified as such in the text.

---

Sources

1. Space Exploration Technologies Corp. SpaceX Reports Second Quarter 2026 Results, earnings release furnished on Form 8-K, August 4, 2026. sec.gov.
2. Space Exploration Technologies Corp. Form 10-Q for the quarter ended June 30, 2026, filed August 4, 2026. sec.gov. Note 3 (revenue disaggregation, backlog, customer concentration); MD&A (segment explanations); Item 1A (cloud services risk factor).
3. Space Exploration Technologies Corp. Registration Statement on Form S-1/A (Amendment No. 2), June 2026. sec.gov. Business section; FY2023 to FY2025 revenue by type; Anthropic cloud agreements; Cursor option terms.
4. Space Exploration Technologies Corp. Form 8-K, Completion of Acquisition (Cursor), filed August 14, 2026. sec.gov.