The Company maintains two equity incentive plans -- the Fourth Amended and Restated Virgin Galactic Holdings, Inc. 2019 Incentive Award Plan (the “Fourth A&R Plan”) and the Second Amended and Restated Virgin Galactic Holdings, Inc. 2023 Employment Inducement Incentive Award Plan (the “Second A&R Inducement Plan”).

The Fourth A&R Plan was adopted by the Company's board of directors in April 2026, subject to the approval of the Company’s stockholders, and became effective upon the approval of the Company’s stockholders in June 2026. The Fourth A&R Plan amended and restated the Third Amended and Restated Virgin Galactic Holdings, Inc. 2019 Incentive Plan (the “Third A&R Plan”) and made the following material changes to the Third A&R Plan: (i) increased the number of shares available by 9.45 million shares to an aggregate of 17,120,437 shares reserved for issuance under the Fourth A&R Plan, (ii) increased the number of shares which may be granted as incentive stock options (“ISOs”) under the Fourth A&R Plan, such that an aggregate of 17,120,437 shares may be granted as ISOs under the Fourth A&R Plan, and (iii) extended the right to grant awards under the Fourth A&R Plan through June 11, 2036, provided that ISOs may not be granted under the Fourth A&R Plan after April 14, 2036.

The Second A&R Inducement Plan was adopted by the Company’s board of directors and became effective in March 2026. The Second A&R Inducement Plan increased the number of shares available by 555,000 shares to an aggregate of 1,695,000 shares reserved for issuance under the Second A&R Inducement Plan.

Pursuant to the Fourth A&R Plan and related predecessor plans, the Company has granted equity incentive awards, including time-based stock options, performance-based stock options, restricted stock units (“RSUs”), and performance stock units (“PSUs”). Pursuant to the Second A&R Inducement Plan and related predecessor plans, the Company has granted RSUs and PSUs.

The Virgin Galactic Holdings, Inc. 2025 Employee Stock Purchase Plan (the “ESPP”) was adopted by the Company’s board of directors in April 2025, subject to the approval of the Company’s stockholders, and became effective upon the approval of the Company’s stockholders in June 2025.

On June 30, 2026, 0.2 million shares were purchased under the ESPP at $2.46 per share, resulting in cash proceeds of $0.5 million. As of June 30, 2026, 2.1 million shares remained available for issuance under the ESPP.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(In thousands)







Spaceline operations	$	1,717	$	566	$	2,692	$	1,001
Research and development	113		516		234		918
Selling, general and administrative	4,993		3,750		8,018		7,682
Total stock-based compensation expense	6,823		4,832		10,944		9,601
Less: stock-based compensation expense for liability-classified awards	(38)		91		155		27
Stock-based compensation expense for equity-classified awards	$	6,861	$	4,741	$	10,789	$	9,574

As of June 30, 2026, the Company had unrecognized stock-based compensation expense of $49.4 million and $4.0 million for RSUs and PSUs, respectively, which are expected to be recognized over weighted-average periods of 2.4 years and 2.5 years, respectively.