SpaceX’s Starlink has “achieved breakeven cash flow,” CEO Elon Musk said Thursday, a milestone achievement for the rocket company’s four-year-old satellite internet business unit.

He announced the news in a post on X, the social media platform that he also owns. He added that Starlink “is also now a majority of all active satellites and will have launched a majority of all satellites cumulatively from Earth by next year.”

It is unclear whether the breakeven milestone is for the quarter or a specific period of time. Regardless, the achievement leaves open the question of whether SpaceX may be nearing taking Starlink public via IPO – a move that Musk once said the company would execute once the cash flow became predictable.

SpaceX president and chief operating officer Gwynne Shotwell gave a hint that the economics were becoming more predictable earlier this year, when she said that Starlink had already achieved a cashflow positive quarter in 2022.

Starlink’s mega-constellation currently sits at around 5,000 satellites, all of these launched by SpaceX rockets. That vertical integration has been key to the company expanding the Starlink network at such aggressive rates – SpaceX launched the first operational Starlink birds in 2019 – and being able to grow at a pace that far outstrips competitors.

Since then, the network has grown to around two million subscribers and spans verticals from consumer to maritime and aviation. More recently, Starlink made the news for its role in international conflict – including the war in Ukraine and more recently the war between Israel and Hamas. SpaceX recently established a defense-focused version of Starlink called Starshield, a sign of the Pentagon’s interest in procuring satellite internet capabilities.

SpaceX is valued at around $150 million. The company posted revenues last year of $1.4 billion, the Wall Street Journal reported in September.

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MuskWire TLDR:

SpaceX’s satellite internet business unit, Starlink, has achieved breakeven cash flow, according to CEO Elon Musk. Musk made the announcement on his social media platform, X, stating that Starlink is now the majority of all active satellites and will have launched the majority of all satellites from Earth by next year. It is unclear whether the milestone refers to a specific period of time, but it raises questions about the possibility of SpaceX taking Starlink public through an IPO. Earlier this year, SpaceX President Gwynne Shotwell hinted at the predictability of Starlink’s economics, mentioning a cash flow positive quarter in 2022. With around 5,000 satellites, all launched by SpaceX rockets, Starlink’s rapid expansion has been facilitated by vertical integration. The network currently has about two million subscribers across various sectors, including consumer, maritime, and aviation. Starlink has also gained attention for its involvement in international conflicts, such as the wars in Ukraine and between Israel and Hamas. Recently, SpaceX introduced a defense-focused version of Starlink called Starshield, indicating the Pentagon’s interest in satellite internet capabilities. SpaceX is valued at approximately $150 billion, and last year, the company reported revenues of $1.4 billion.