The SpaceX satellite internet constellation achieved a net profit of $72 million in 2024, but its operating costs and ambitious global deployment continue to absorb most of the revenue.
Starlink, operated by SpaceX, closed 2024 with a net profit of $72.7 million, marking its first year with positive numbers. However, the direct costs associated with expanding the global service consumed the vast majority of income generated, making it clear that the current profit margin is insufficient to support larger projects like Starship—the next-generation rocket Elon Musk dreams of using to colonize Mars.
Revenue is increasing, but profit margins remain narrow.
According to financial statements filed with the Dutch Chamber of Commerce, Starlink generated roughly $2.7 billion in revenue in 2024, nearly double the $1.39 billion in 2023. Still, direct costs totaled $2.5 billion, leaving a gross margin of 7% and a gross profit of around $200 million. After accounting for taxes and other operational expenses, net profit comes to just over $70 million.
While this represents a significant improvement over 2023, when the unit posted a loss of $30.7 million, the report warns that additional funding from SpaceX will be necessary to cover cash needs over the next 12 months.
Europe has become the main growth driver.
The financial data also reveals that Europe has transformed into the largest market for Starlink, solidifying its role as the global distributor of the service. However, this global expansion—paired with continuous satellite deployments in low Earth orbit (LEO)—helps explain the high structural costs.
Unlike competitors such as Echostar or Viasat, which operate satellites in higher orbits with wider coverage, Starlink requires frequent launches of smaller satellites due to coverage limitations of LEO. This approach involves higher logistical costs but offers lower latency, a key factor for applications like cloud gaming or video calls in remote areas.
A business model still under development.
The contrast with traditional operators is striking: Echostar and Viasat report gross margins of 25.9% and 33%, respectively, benefiting from established infrastructure and more stable user bases. In contrast, Starlink remains in an intense expansion phase, where each new customer entails additional investments in terminals, satellites, and launches.
Nonetheless, recurring revenue from monthly subscriptions suggests that, over time, the service could achieve more favorable economies of scale. For now, however, the profit margin is insufficient to support the development of Starship, a project requiring billions of dollars in investments.
What does this mean for SpaceX?
The financial report makes it clear that, despite Starlink’s commercial progress, the Starship program still needs its own financial backing beyond the profits from satellite internet services. In fact, SpaceX has had to issue a financial support letter to its subsidiary, Starlink Services, to ensure operational continuity.
This reinforces the idea that, while Starlink could become a solid and strategic revenue source, it still doesn’t serve as the financial lifeline that could guarantee SpaceX’s self-sufficiency in its most ambitious ventures: building rockets to carry humans to the Moon and Mars.
Conclusion: Starlink is making progress, but SpaceX still requires additional funding sources—such as NASA contracts or private investment rounds—to realize its interplanetary dreams. The expansion of global space-based connectivity is real, but its large-scale profitability remains on hold.
via: WCCFTech and SpaceX Starlink Accounts