While hard numbers are tough to come by, experts estimate that Starlink Roam customers in the U.S. make up about 15% of the total company’s U.S. base, or roughly 400 to 450 thousand subscribers. And the service isn’t cheap, but is significant. But Starlink is “just getting going,” as it were. The way to profitability isn’t easy, according to financial filings with the Netherlands Chamber of Commerce. Starlink profits are slim.
Starlink profits are slim—but they are on the plus side
A peek at the filings gives a little bit of a hint about how hard it is for the satellite internet company. The filings for 2024 show Starlink brought in $2.7 billion in revenue. That’s a huge jump from the $1.39 billion it made in 2023, marking a 93% year-over-year increase. But despite the big sales numbers, almost all of that revenue was eaten up by costs.
After covering direct expenses like satellite manufacturing, launches, and infrastructure, Starlink was left with just $200 million in gross profit. Once other costs and taxes were deducted, the final net profit for the year was only $72.7 million. While not a lot, it’s the first time Starlink has shown numbers in the profit column.
High cost to build and maintain an orbiting network
The slim margins—only 7%—tell the tale of how expensive it is to build and maintain a low Earth orbit (LEO) satellite network. Unlike older providers like HughesNet and Viasat, which use fewer but higher-orbit satellites with larger coverage areas, Starlink needs thousands of smaller satellites orbiting closer to Earth. That means more frequent launches and a much larger network, which costs more to operate and maintain.
Part of the problem is the nature of the company’s satellite constellation. Those birds don’t last forever. Already, around 1,200 Starlink satellites have been de-orbited or are non-functional. SpaceX is currently retiring roughly four to six satellites daily, consistent with maintaining a five- to seven-year replacement cycle. But with the current v2 Mini satellites (being flown since 2023) costing an estimated $500,000 to $700,000 each, those four, five, or six satellites needing replacement per day—well, the costs are (pardon) astronomical. The next generation v2 satellites have a projected price tag of more than a million each.
Meanwhile, Starlink’s older competitors are making more money with lower costs. HughesNet brought in $15.8 billion and Viasat $3.2 billion during their most recent fiscal years, with profit margins of 26% and 33%, respectively. These companies benefit from long-established systems and a stable customer base.
2025—Starlink profits too small to go without help
Starlink, however, is still in growth mode—especially overseas. The documents show that Europe has become its largest market, and much of the current spending is going toward expanding its global footprint.
Starlink’s parent company, SpaceX, has big dreams of using Starlink profits to help fund space exploration missions, including building rockets like Starship that could one day go to Mars. But the filings make it clear that Starlink isn’t there yet.
Starlink still needs financial backing from SpaceX to stay afloat in the short term. Starlink’s own documents state it will require “additional support” from SpaceX over the next 12 months to meet its cash needs.
Bottom line: Starlink is growing fast and has finally turned a profit, but it’s not yet the cash machine SpaceX hopes it will become.
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RVT1218b
Thank you for the interesting information, Russ and Tina! With this information as a backdrop, the price of service, even the $1000 one-time charges, seem pretty reasonably priced. Despite that, it isn’t a service that we need or purchase. Have a great week and safe travels!