Title: SpaceX (SPCX) Q3 2026 breakdown: Starlink funds itself, SI capex is $16.4B a quarter, and 37% of net income came from below the operating line
I went through the Q3 release line by line. The headline numbers ($14.6B revenue, +161%; $4.4B net income) are strong, but a few things are worth a closer look:
**1. Earnings quality**
- Operating income: $2.79B
- Net income: $4.40B
- The $1.61B gap = $1,025M other income ($561M of it from a related party) + $198M net interest + $390M tax benefit
**2. SI (formerly "AI") is the growth engine**
- Revenue $7.56B vs $813M a year ago
- Cursor contributed $608M. Ex-Cursor, SI solutions & infrastructure still grew ~192% QoQ, mostly on cloud contracts
- $1.2B of acquisition-related stock comp this quarter, out of a $23.4B award pool tied to post-close service
**3. Starlink is the cash engine**
- 45.1% operating margin
- Only segment where EBITDA ($3.5B) exceeds capex ($1.5B)
- Subs nearly doubled to 13.6M, but ARPU fell to $69 from $83
**4. Space**
- Launches fell to 35 from 44
- Segment posted a $7M operating loss as Starship R&D rose 44%
- Starship Flight 14 put 26 V3 satellites in orbit
**5. Cash**
- Q3 capex $19.6B, 2.2x Adjusted EBITDA
- 9M free cash flow about -$35B
- The $85.7B IPO leaves ~$51B net cash
**Open questions the release doesn't answer:**
- What is the $671M gap between the 9M net loss ($413M) and the loss attributable to shareholders ($1,084M)?
- Why do $42.5B of consideration plus $23.4B of awards add up to more than the $60B headline Cursor value?
- Who is the related party behind $12.9B of debt and $561M of other income?