SpaceX's Starlink satellite internet service brought in $72 million in revenue as direct costs ate into most of its sales, show financial statements filed with the Netherlands Chamber of Commerce. Starlink is the world's largest satellite internet service, and SpaceX has aimed to use its profits to fund rocket development for interplanetary space missions. However, so far, it appears that most of the revenue generated from Starlink is going into expanding the service's global presence, as out of the $2.7 billion in revenue that the service generated in 2024, $2.5 billion was accounted for by direct costs.
Europe Emerges As Starlink's Largest Market, Show Documents
According to the details, Starlink generated $2.7 billion in revenue in 2024, a 93% annual growth over 2023's $1.39 billion in revenue. The figures come from Starlink financial statements shared with the Dutch chamber of commerce. They also show that Starlink's gross margin, or the percentage of money of its sales left after accounting for direct costs of goods sold, was 7% due to the firm's $200 million in gross profit.
For comparison, Echostar, known primarily for the HughesNet internet service and satellite internet provider Viasat, reported $15.8 billion and $3.2 billion in revenue during their latest fiscal years, respectively. The two had respective gross margins of 25.9% and 33%, which indicates the relative maturity of their businesses, which rely on sizable established space infrastructure and customer bases.
On the other hand, SpaceX has to build out its internet constellation in LEO, which requires it to launch satellites regularly. A LEO constellation requires more satellites than constellations at higher altitudes, such as those operated by Echostar and Viasat. LEO constellations require more satellites because not only are the LEO satellites smaller, but their lower altitude means their coverage area is smaller than satellites placed at higher altitudes.
Out of the $200 million in gross profit, other expenses and taxes lead to a net profit of $72.7 million for SpaceX's satellite internet service. The net profit marks a 337% annual growth as 2024 appears to be the first year where Starlink became profitable as the service posted a $30.7 million loss in 2024. Since Starlink relies on recurring revenue, as it grows its market presence, the firm's direct costs should drop since it will earn money from users who have already subscribed.
The financial statements belong to Starlink Satellite Services, which lists itself as "a distributor of Starlink throughout the world." Since the firm is a SpaceX subsidiary, it shares a portion of its profit with the parent, and based on the 2024 figures, it appears that the profit is quite insufficient to fund the development of SpaceX's Starship program.
In fact, the statements note that "additional support from SpaceX will be necessary" over the next 12 months due to its cash position. Starlink Services has also received a letter of financial support from SpaceX for its cash needs.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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