What Firefly Aerospace (FLY) Said on Its Q3 Earnings Call

Key Points

• Revenue surged 259% to $110.7 million in Q3, and Firefly raised the low end of its 2026 revenue outlook to $440 million; its quarterly net loss widened to $75.4 million.
• A three-year AST SpaceMobile agreement valued at more than $1.3 billion will fund engine technology licensing, support services and engine deliveries. Firefly expects the work to begin contributing meaningfully to revenue in 2027 while retaining ownership of its engine intellectual property.
• Firefly pushed its next Alpha launch to Q1 2027, but said near-term demand exceeds available rocket capacity. Its backlog grew to about $1.7 billion, supported by new lunar, launch and defense contracts.

Firefly Aerospace NASDAQ: FLY raised the low end of its 2026 revenue forecast after reporting a third-quarter revenue increase of 259%, while outlining a more than $1.3 billion engine technology agreement with AST SpaceMobile and pushing its next Alpha rocket launch into early 2027.

The space and defense company reported revenue of $110.7 million for the quarter ended Sept. 30, up from $30.8 million a year earlier. Spacecraft contributed $106 million, while launch revenue accounted for $4.7 million. Year-to-date revenue reached $309.2 million, up 203% from the first nine months of 2025.

Firefly now expects full-year revenue of $440 million to $450 million, compared with its previous forecast of $420 million to $450 million. CFO Darren Ma said strength in lunar programs and AI software was offsetting some of the revenue impact from the launch schedule change.

The company reported a third-quarter net loss of $75.4 million, or $0.45 per share, compared with a $67.7 million loss, or $0.42 per share, in the second quarter. Adjusted EBITDA was a loss of $69.5 million, versus a loss of $61.2 million in the prior quarter. Firefly said financial figures discussed on the call were non-GAAP unless otherwise stated.

AST agreement to fund expansion

CEO Jason Kim described the three-year AST SpaceMobile agreement as a source of non-dilutive funding that will support Firefly’s launch business. Firefly will build and deliver 27 Miranda first-stage engines and nine Vira upper-stage engines for the first three flights of AST’s planned heavy-lift vehicle.

Ma said the agreement has three principal components: approximately $800 million in cash and AST stock for engine intellectual property licenses, $250 million for support services and $250 million for engine deliveries. The license component consists of $400 million in cash and 10 million to 14 million AST Class A shares, with the share count determined by a forward volume-weighted average price calculation. The shares are subject to lockup periods.

Firefly will retain ownership of its engine intellectual property. Kim said AST will eventually build Miranda engines itself and focus on launching its own satellite constellation, while Firefly continues to serve commercial and government launch customers.

Ma said revenue from the license and services will be recognized over time as work is completed, while engine revenue will be recognized upon delivery. He expects revenue to begin in earnest in 2027 and ramp through the agreement’s second and third years. He also expects the license and services to expand Firefly’s gross margins, although the company plans significant research, infrastructure and capital spending.

Alpha launch shifts to 2027

Firefly is targeting the first quarter of 2027 for Alpha Flight 8 after a national security customer’s direction required a launch manifest adjustment, Kim said. The mission will debut the company’s Block II configuration, which is designed to improve manufacturing rates and reliability.

Kim said Firefly has components in production for Alpha Flights 9 through 12 and plans to provide a 2027 launch target on its fourth-quarter earnings call. He said near-term demand exceeds the number of rockets available on the company’s manifest.

Recent launch wins include two Alpha launches for SSC Space from Sweden and an agreement with Japanese satellite company Synspective for up to 10 launches through 2030. Firefly also added a hypersonic task order and extended its Lockheed Martin multi-launch agreement.

For Eclipse, the medium-lift vehicle being developed with Northrop Grumman, Kim said the Miranda engine qualification campaign is underway. The company had completed more than 175 hot-fire tests, totaling 4,230 seconds across 20 engines. Asked whether a first Eclipse launch remained expected in 2027, Kim discussed development milestones but did not confirm a launch date.

Lunar and defense work grows backlog

Firefly ended the quarter with approximately $1.7 billion in backlog, up from $1.5 billion at the end of the second quarter. Ma said more than $300 million in new customer contracts more than replenished revenue recognized during the period.

Kim said the company is working on five lunar missions in parallel. Its second Blue Ghost mission is expected to launch in 2027, subject to spacecraft delivery and confirmation of a launch window. A mission to the Gruithuisen Domes is targeted for 2028.

The company has also joined NASA’s $10 billion CLPS 2 program, making it eligible to compete for task orders that could include larger lunar cargo deliveries. Joining the program does not itself guarantee Firefly an award.

In defense software, Firefly won a $94 million Space Force ground-based radar digitization contract and joined the $981 million NITE-STAR contract, under which it can compete for task orders. Kim said the radar award’s first phase could lead to additional opportunities, though he did not provide a SciTec growth forecast.

Liquidity and spending

Firefly ended the quarter with $839.7 million in total liquidity, including $534.7 million in cash, equivalents and short-term investments and $305 million available under an undrawn revolving credit facility. Third-quarter free cash flow was an outflow of $85.3 million, compared with an outflow of $106.3 million in the prior quarter.

Asked about spending tied to the AST agreement, Ma said Firefly expects cash burn to increase through 2027 as it invests in research, facilities and production capacity. He did not provide a specific cash-burn or incremental capital-spending forecast.

About Firefly Aerospace (NASDAQ:FLY)

Firefly Aerospace is a space and defense technology company founded in 2017 and headquartered in Cedar Park, Texas. It develops launch vehicles and spacecraft and provides launch, lunar, and in-space transportation services for government and commercial customers. Its products include the Alpha rocket, designed to carry small and medium-sized payloads to orbit, and the Blue Ghost lunar lander, which delivers payloads to the Moon. The company also develops Elytra, an orbital vehicle intended to support missions such as payload transport and in-space operations.

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