(Photo by Jakub Porzycki/NurPhoto via Getty Images)A new financial statement is offering a glimpse at how much money SpaceX’s Starlink business makes — and it might not be as much as you think.
The company has quietly filed a 2024 financial statement for a Texas-based subsidiary called Starlink Satellite Services Corp. that covers a significant portion of the satellite internet system’s global sales, including those for North America.
The 29-page document says the Starlink subsidiary raked in $2.7 billion in revenue for 2024, a 93% increase from the $1.4 billion it earned in the previous year. In 2024, nearly $2 billion of the revenue came from Starlink subscriptions while the remainder —at over $736 million— came from Starlink hardware-related sales.
Surprisingly, the subsidiary says North America isn’t its largest market by revenue. Instead, it’s Europe —possibly because of Starlink’s importance in Ukraine— followed by the Asia-Pacific region and Latin America.
The document offers a rare look at Starlink’s financials, since SpaceX, as a private company, generally keeps its revenue under wraps.
(SpaceX/KVK)
The independent satellite technology consultant Christian Freiherr von der Ropp discovered the financial statement, which SpaceX filed with the Netherlands Chamber of Commerce last week.
However, the financial statement appears to only cover the “civilian” portion of the Starlink business, according to von der Ropp, who described the Starlink Satellite Services Corp. subsidiary as an “internal reseller.”
The document itself says Starlink Satellite Services Corp. operates as an intermediate holding company that “acts as distributor of Starlink throughout the world,” and buys Starlink hardware from its parent, SpaceX.
“The Company derives revenue from the sale of hardware, called ‘Starlink Kits,’ that provide access to the Starlink Network and the related broadband services to consumer and enterprise customers,” the document adds. “Customers are obtained generally through direct sales or various distributors.”
Although the Starlink subsidiary sells to North America, satellite industry analyst Tim Farrar told PCMag the financial statement likely doesn't cover the US market since domestic Starlink sales have been invoiced to Space Exploration Technologies Corp. in California.
"But total Starlink revenues in 2024 are unlikely to be much more than double the $2.7B figure, excluding custom projects like the NRO Starshield satellites," Farrar said in an email.
Meanwhile, von der Ropp suspects SpaceX is pulling in additional revenue through Starlink’s government-focused sales. A separate research firm, Quilty Space, forecasted in December that Starlink will generate an estimated $11.8 billion this year. Meanwhile, SpaceX CEO Elon Musk tweeted last month he expects SpaceX to rake in about $15.5 billion for this year.
Still, von der Ropp told PCMag the financial statement raises questions about whether SpaceX is finding enough demand to offset the costs of the satellite internet system. For example, although the Starlink subsidiary reported $2.7 billion in revenue for 2024, the same financial statement doesn’t account for the costs of launching and maintaining a fleet of nearly 8,000 Starlink satellites.
“They don’t make as much money as you’d expect, and there is still a big question of whether this will become a profitable business,” he said.
He also noted that SpaceX has been offering major discounts on Starlink hardware across the globe, which suggests the company is subsidizing some of the sales. “I’m skeptical they can scale this business when they already have to be so aggressive (with discounts) at this early stage,” he added.
The document also shows the Starlink subsidiary registered a net income of only $72.7 million for 2024. The year prior, the subsidiary incurred a net loss of $30.7 million. However, the financial statement notes the subsidiary purchased nearly $2.3 billion in Starlink hardware and services from the SpaceX parent last year.
SpaceX didn’t immediately respond to a request for comment, making it unclear if it's managing Starlink sales through other subsidiaries. In the meantime, the company is reportedly in talks to raise more funding at a $400 billion valuation.
Editor's note: This story has been updated with comment from analyst Tim Farrar.