SpaceX's satellite internet company Starlink finally started making money after years of burning cash. The space firm pulled in a massive $2.7 billion during 2024 but nearly all of that went straight back into running the business. Starlink ended up with just $72 million in actual profit after paying all the bills. The company spent $2.5 billion on direct costs which left them with razor thin profits. Europe became their biggest money maker as customers signed up across the continent.
Starlink faces much tougher competition than people realize when compared to older satellite companies. Rivals like HughesNet and Viasat make much fatter profits on every dollar they earn. These established players keep 25 to 33 cents of every sales dollar while Starlink manages just 7 cents. The difference comes from Starlink needing thousands more satellites because they fly much closer to Earth. Lower satellites cover smaller areas which forces the company to launch rockets constantly.
The satellite internet service posted its first profitable year after losing over $30 million in 2023. Financial documents filed in the Netherlands reveal that Starlink still needs cash injections from parent company SpaceX. The profits remain far short of what SpaceX needs to fund their Mars rocket program. Company paperwork admits that additional support from SpaceX will be necessary over the next 12 months.
Starlink faces much tougher competition than people realize when compared to older satellite companies. Rivals like HughesNet and Viasat make much fatter profits on every dollar they earn. These established players keep 25 to 33 cents of every sales dollar while Starlink manages just 7 cents. The difference comes from Starlink needing thousands more satellites because they fly much closer to Earth. Lower satellites cover smaller areas which forces the company to launch rockets constantly.
The satellite internet service posted its first profitable year after losing over $30 million in 2023. Financial documents filed in the Netherlands reveal that Starlink still needs cash injections from parent company SpaceX. The profits remain far short of what SpaceX needs to fund their Mars rocket program. Company paperwork admits that additional support from SpaceX will be necessary over the next 12 months.
