Firefly Aerospace (NASDAQ:FLY) reported record first-quarter 2026 revenue as management pointed to accelerating demand across lunar missions, national security software, and launch services. The company posted first-quarter revenue of $80.9 million for the period ended March 31, up from $57.7 million in the fourth quarter and $55.9 million a year earlier, driven by growth in its space defense software programs and a successful Alpha launch.
Management highlights increased momentum in lunar and defense markets
CEO Jason Kim said Firefly “opened the year with strong execution and increasing momentum driven by major government programs that align directly with our core capabilities,” emphasizing a record quarterly revenue figure of $81 million. Kim highlighted NASA’s evolving lunar roadmap, saying the “acceleration of the Artemis program, combined with NASA’s Moon Base initiative, calls for monthly robotic lunar landings.”
NASA Moon Base and Blue Ghost production ramp
Kim described NASA’s Moon Base plan as an acceleration of Artemis that could create a regular cadence of surface missions and persistent support from lunar orbit. He said the first two phases of the architecture over the next seven years represent “a $20 billion program” with multiple opportunities for Firefly, including robotic landers and orbital support.
To support higher cadence, Kim said Firefly made progress on a new clean room “4 times the size of our existing clean room,” aimed at enabling more frequent Blue Ghost lander production. He said the company is also investing in supply chain readiness through long-term agreements and strategic inventory to support “quality, schedule, and quantities of delivery.”
Firefly said assembly of the Blue Ghost lander and Elytra orbiter is underway for Blue Ghost Mission 2, with assembly and payload integration targeted for completion this summer. Kim said Mission 2—named “Riders to the Dark”—is intended to attempt “the first American landing on the Moon’s far side,” carrying NASA and commercial payloads.
Kim also cited program progress beyond Mission 2, including the completion of a preliminary design review for Blue Ghost Mission 3, with work underway toward the critical design review, and preparation for a preliminary design review for Mission 4 to the Moon’s South Pole.
In response to analyst questions about the longer-term size of lunar lander opportunities, Kim said Firefly has “designs for larger landers” and described expected future mission classes including larger payload deliveries to the lunar surface. He added that solicitations such as “CX-2,” “MoonFall,” “CS-8,” and “CLPS 2.0” are already in motion, and said that if NASA remains on schedule, some awards could come “no earlier than third quarter of this year.”
Elytra and Ocula lunar imaging partnership with NVIDIA
Firefly also detailed progress on Elytra and the company’s Ocula lunar imaging service, including a new partnership with NVIDIA. Kim said NVIDIA’s Jetson module was embedded in high-resolution Lawrence Livermore National Laboratory telescopes for integration onto an Elytra orbital vehicle.
According to Kim, Elytra is expected to serve as a transfer vehicle and communications relay for Blue Ghost before beginning Ocula operations for “5 years in lunar orbit,” supporting “advanced lunar service mapping, mineral detection, and reconnaissance.” Kim said on-orbit processing would reduce downlink constraints by processing data before transmission to Earth, combining the NVIDIA module with Firefly’s SciTec-enabled AI software.
Firefly also discussed Elytra work for Blue Ghost Mission 2, including separation testing related to deployment of the European Space Agency’s Lunar Pathfinder satellite, and interoperability testing intended to ensure Elytra can communicate with Blue Ghost and provide a backup relay for NASA’s LuSEE-Night payload on the lunar far side.
On the business model for Elytra and Ocula, Kim told analysts that Elytra flying on Blue Ghost Mission 2 is included within that mission’s contract value. He said Firefly won Blue Ghost Mission 2 for $130 million and is also carrying commercial payloads, including “a rover from UAE” and two additional commercial payload add-ons, with Ocula described as another add-on. He said that revenue for this work is “recognized over time.”
Defense software: Golden Dome and FORGE updates
Kim said SciTec’s experience on the FORGE program supports its positioning for Golden Dome-related efforts. On the call, he described FORGE as operational since last September and said its algorithms are transferable to Golden Dome because command-and-control and ground processing are central challenges for complex architectures.
CFO Darren Ma said sequential revenue growth in the quarter was driven by “the ramp of the FORGE and Golden Dome Space-Based Interceptor programs, a full quarter of SciTec, and the successful Alpha launch.” In Q&A, Ma added that revenue for the Space-Based Interceptor program “did ramp up in Q1 this quarter,” though the company did not break out SciTec contribution separately.
Kim also said that after the U.S. Space Force operationally accepted FORGE last year, Firefly was awarded a $109 million engineering change proposal in the first quarter to “accelerate and expand data center delivery.” He said the system “processed thousands of threats in the 1st 30 days of the Iran conflict to help protect our warfighters.”
Launch: Alpha return to flight, responsive launch exercises, and Eclipse progress
In launch, Firefly said Alpha Flight 7 returned to flight successfully in March, deploying a Lockheed Martin demonstrator payload and validating “key Block II subsystems,” according to Kim. Firefly also supported Lockheed Martin in the U.S. Space Force’s VICTUS DIEM mission, which included two responsive space exercises: a rapid payload processing demonstration completed in under 12 hours, and a 36-hour rapid launch simulation.
Kim said Firefly is targeting Alpha Flight 8 for late summer as the debut of the first Block II vehicle, with improvements intended to increase reliability and production rate. He said Firefly is targeting three additional Alpha launches in 2026 and is building structures and engines for flights 9 and 10 and beyond.
On international expansion, Kim pointed to Sweden’s defense budget allocating “tens of millions” for orbital launch infrastructure and said Firefly’s partners want to bring Alpha to market in Sweden and other allied countries. He also said Firefly signed an agreement with Seagate Space to collaborate on development of an offshore launch platform for sea-based Alpha launches, aligning with Space Force interest in flexible infrastructure and eliminating single points of failure.
For Eclipse, Firefly’s reusable medium-lift rocket, Kim said major flight articles are in build and test, including Miranda engines. He said Firefly completed qualification of the Eclipse interstage and other components, and is progressing through a test campaign on first-stage tanks that are “nearly 100 feet tall,” describing the work as risk-reduction testing to verify margins.
Financial results: revenue record, backlog steady, losses widen
Ma said spacecraft solutions generated $67.6 million of first-quarter revenue, while launch generated $13.3 million. Firefly ended the quarter with total backlog of about $1.3 billion, which Ma said was “relatively flat from last quarter,” reflecting both conversion of backlog to revenue and the timing of new awards.
First-quarter GAAP gross margin was 21.6%, down from 27.7% in the prior quarter. Ma attributed the change primarily to “a higher mix of cost plus program contracts driving revenue.”
GAAP operating expenses were $113.1 million, up from $101.6 million in the fourth quarter, driven mainly by a full quarter of SciTec expenses and continued R&D investment. On a non-GAAP basis, operating expenses were $93.7 million, up from $80.5 million, with Ma citing investments supporting the Alpha Block II production ramp and Eclipse development.
Firefly posted a GAAP operating loss of $95.7 million versus $85.6 million in the prior quarter, and a non-GAAP operating loss of $76.2 million versus $64.5 million. GAAP net loss was $96.7 million, compared with a GAAP net loss of $41.1 million in the fourth quarter, when Firefly recorded a one-time $37.1 million tax benefit tied to the SciTec acquisition and an $8.4 million gain related to settlement of contingent liabilities. Non-GAAP net loss in the first quarter was $74.0 million versus $58.5 million in the fourth quarter.
GAAP net loss per share was $0.61, compared with $0.26 in the prior quarter. Non-GAAP net loss per share was $0.46, compared with $0.38. Firefly ended the quarter with 160.1 million shares outstanding and expects share count to rise by about 1 million shares per quarter.
Adjusted EBITDA was a loss of $64.7 million, compared with a loss of $57.3 million in the fourth quarter.
Firefly ended the quarter with total liquidity of $811.6 million, including $551.6 million in cash equivalents and short-term investments and $260 million of available capacity under its revolving credit facility. Ma said that after quarter-end, the company increased the facility’s capacity to $305 million, which remains undrawn. Capital expenditures were $16.3 million, up from $12.1 million, driven by test stand upgrades to support Alpha Block II and spacecraft manufacturing expansion aimed at NASA lunar opportunities. Free cash flow was an outflow of $78.9 million, roughly flat with the prior quarter’s outflow of $79.3 million. Ma also noted a final SciTec acquisition-related payment of about $24 million expected to be reflected in second-quarter cash flow.
For 2026, Firefly reiterated its revenue outlook of $420 million to $450 million. “With continued strength across our business, we remain confident in our trajectory to achieve significant annual revenue growth this year,” Ma said.
About Firefly Aerospace (NASDAQ:FLY)
Firefly Aerospace (NASDAQ:FLY) is a U.S.-based aerospace company that designs, manufactures and operates launch vehicles and in-space systems for commercial, civil and national security customers. The company focuses on providing end-to-end small- and medium-lift launch services, mission integration and spacecraft hardware to support satellite deployment and on-orbit operations.
Firefly’s product portfolio includes the Alpha small launch vehicle, developed to carry small satellites to low Earth orbit, and plans for larger vehicles and in-space capabilities to address a range of payload sizes and mission profiles.
