On the 10th of December, 2025, SpaceX CEO Elon Musk made a brief but pivotal revelation via Twitter, confirming longstanding speculation that the aerospace giant would conduct an initial public offering (IPO) in 2026. This announcement marked a departure from Musk's earlier position, where he had expressed reservations about taking the company public, fearing shareholders might oppose the substantial capital investment needed for ambitious projects like Mars colonization.
Elon Musk originally founded SpaceX with the goal of establishing humanity as a multiplanetary species by developing a permanent colony on Mars. While this vision remains intact, the company has pursued more immediate avenues of revenue generation to fund this costly endeavor, including dominating the launch services sector, securing government contracts for lunar missions, and deploying the largest satellite constellation in history.
The satellite internet project, known as Starlink, was inaugurated over a decade ago with initial investments from firms such as Google and Fidelity. The satellite constellation aims to provide broadband internet coverage globally by orbiting a massive network of satellites, with an original target of deploying 12,000 satellites.
Internal SpaceX documents obtained in 2017 projected that the Starlink network would eventually deliver roughly $36 billion in annual revenue with operating profit margins nearing 60%, equating to an operating profit of $22 billion per year. Although these projections were initially aimed at 2025, current progress indicates that SpaceX is moving closer to that goal, albeit not fully there yet.
Notably, on December 8, 2025, SpaceX launched its 159th Falcon 9 rocket of the year, deploying 29 new Starlink satellites into orbit. Among these was the 3,000th Starlink satellite launched in 2025 alone, underscoring significant momentum in expanding the constellation. To date, approximately 9,000 Starlink satellites are operational, servicing an 8 million strong customer base and approaching the initial 12,000 satellite target. Moreover, SpaceX has discussed ambitions to potentially increase this number to 42,000 satellites in the future.
In financial terms, multiple sources report that SpaceX is projected to generate about $15 billion in revenue in 2025. The research company Payload provided estimates suggesting that Starlink contributed $8.2 billion out of a total $13.1 billion revenue in 2024, representing 62.5% of total revenues. Payload further projects a 56% increase in Starlink revenue to $12.8 billion in 2025, with total SpaceX revenues growing 39% to $18.2 billion. This would mean Starlink's contribution would rise to roughly 70% of SpaceX’s overall revenue in 2025.
For investors considering participation in the upcoming IPO, these figures indicate that while SpaceX remains deeply involved in rocket launches, lunar mission contracts, and emerging defense contracts related to orbital security, the financial backbone of the company is increasingly tied to its satellite internet business. This dual focus means investors are effectively acquiring a stake in a company that functions prominently as an internet service provider (ISP) alongside its space exploration efforts.
The transition to a revenue profile dominated by an ISP is not necessarily negative, especially when viewed within the context of profitability. Traditional aerospace and defense firms such as Lockheed Martin and Boeing often exhibit operating profit margins below 10%. Similarly, newer space technology entrants struggle to reach profitability. Conversely, terrestrial ISPs like AT&T and Verizon routinely achieve operating margins above 20%, while Comcast’s residential internet services reach margins as high as 38%, and its business services an impressive 57%.
Therefore, despite SpaceX's identity as a space company, its Starlink division offers the potential for significantly higher profitability, which could prove attractive to shareholders. Prospective investors in the IPO might consider the opportunity to own a leading-edge ISP business operating from space, alongside continuous advancements in space exploration technology and contracts.