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    Earnings call· Jun 2026(Q2 FY26)

    Firefly Aerospace Q2 FY26 earnings call FLY

    Aug 11, 2026 Source

    Executive summary

    Firefly Aerospace Q2 FY26 — Record Revenue and Backlog Driven by Spacecraft Solutions

    Firefly Aerospace achieved record revenue and backlog in Q2 FY26, primarily fueled by its Spacecraft Solutions business and AI software. The company is expanding production capacity and global reach to meet strong demand across its product lines, with a clear path to its reiterated full-year revenue guidance. Strategic acquisitions and vertical integration are bolstering capabilities for critical national security and space exploration missions.

    Highlights

    5
    • Record quarterly revenue of $117.7 million, representing 46% sequential growth and 659% year-over-year increase.

    • Record total backlog of $1.5 billion, up from $1.3 billion last quarter, driven by new contract wins.

    • Spacecraft Solutions revenue reached $108.3 million, executing on 5 lunar missions in parallel.

    • Total liquidity of $940.3 million, including $635.3 million in cash and $305 million undrawn revolving credit facility.

    • Reiterated full-year 2026 revenue guidance of $420 million to $450 million, with 95% of revenue booked.

    Concerns

    3
    • GAAP gross margin declined to 20.3% from 21.6% sequentially, primarily due to FORGE hardware purchases for a U.S. government program.

    • Free cash flow was an outflow of $106.3 million, an increase from $78.9 million sequentially, due to a $24 million SciTec acquisition-related payment.

    • Alpha launch schedule for Flight 8 moved to Q4 FY26 from late summer, impacting the number of planned launches for the year from 4 to 3.

    Guidance & targets

    11
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $420 million to $450 million
    high materiality
    High
    Alpha Launches
    3 launches
    medium materiality
    Medium
    Alpha Flight 8 Launch
    Q4 FY26
    medium materiality
    Medium
    Eclipse First Stage Delivery
    no earlier than 2027
    medium materiality
    Medium
    Eclipse Inaugural Launch
    no earlier than 2027
    high materiality
    Medium
    Wallops Launch Pad Operational
    2027
    medium materiality
    High
    Swedish Launch Pad Operational
    no earlier than 2028
    medium materiality
    High
    Blue Ghost Mission 2 Launch
    early 2027
    high materiality
    Medium
    NASA SkyFall Mission Launch
    late 2028
    medium materiality
    High
    CLPS 1.0 Opportunities
    3 opportunities
    medium materiality
    High
    Alpha Average Selling Price (ASP)
    go up over time
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Spacecraft Solutions
    Exceptional performance driven by 5 lunar missions in parallel and AI software solutions. Revenue recognition is generally over time under each contract as milestones are completed, providing predictable recurring revenue.
    Executing on 5 lunar missions in parallel
    $108.3 million
    Launch
    Revenue for Alpha is recognized at a point in time when launch occurs. Eclipse revenue is recognized as a percentage of completion based on program milestones as part of the Northrop Grumman partnership.
    $9.4 million

    Operational metrics

    35
    Revenue
    $117.7 million46% sequential growth; 659% YoY growth
    Q2 FY26

    Record quarterly revenue.

    GAAP Gross Margin
    20.3%down from 21.6% in Q1 FY26
    Q2 FY26

    Modest decline driven by FORGE hardware purchases.

    GAAP Operating Expenses
    $119.1 millionup from $113.1 million in Q1 FY26
    Q2 FY26
    Non-GAAP Operating Expenses
    $94.3 millionup from $93.7 million in Q1 FY26
    Q2 FY26

    Slight increase represents continued R&D investments for Alpha Block II production ramp and Eclipse development.

    GAAP Operating Loss
    $95.2 millionvs $95.7 million in Q1 FY26
    Q2 FY26
    Non-GAAP Operating Loss
    $70.4 millionvs $76.2 million in Q1 FY26
    Q2 FY26
    GAAP Net Loss
    $92.3 millionvs $96.7 million in Q1 FY26
    Q2 FY26
    Non-GAAP Net Loss
    $67.7 millionvs $74 million in Q1 FY26
    Q2 FY26
    GAAP Basic and Diluted Net Loss Per Share
    $0.57vs $0.61 in Q1 FY26
    Q2 FY26
    Non-GAAP Basic and Diluted Net Loss Per Share
    $0.42vs $0.46 in Q1 FY26
    Q2 FY26
    Weighted Average Share Count
    161.8 million
    Q2 FY26

    Used for Q2 net loss per share calculation.

    Share Count (end of period)
    166.2 million
    Q2 FY26

    Includes shares from June common stock offering.

    Expected Weighted Average Share Count
    167.2 millionincrease by about 1 million shares per quarter
    Q3 FY26

    For Q3 net loss per share calculation.

    Stock-Based Compensation Expense
    $17 millionup from $12.5 million in Q1 FY26
    Q2 FY26

    Increase related to new stock-based awards granted.

    Adjusted EBITDA Loss
    $61.2 millionvs $64.7 million in Q1 FY26
    Q2 FY26
    Total Liquidity
    $940.3 million
    Q2 FY26

    Consists of cash, cash equivalents, short-term investments, and available revolving credit facility.

    Cash, Cash Equivalents and Short-Term Investments
    $635.3 million
    Q2 FY26
    Available Revolving Credit Facility
    $305 million
    Q2 FY26
    Net Proceeds from Common Stock Offering
    $182.6 million
    Q2 FY26

    Offering completed in June.

    Capital Expenditures
    $24.8 millionup from $16.3 million sequentially
    Q2 FY26

    Reflecting investments in production capacity, test stand upgrades, and spacecraft manufacturing expansion.

    SciTec Acquisition-Related Payment
    $24 million
    Q2 FY26

    Final payment, contributing to increased FCF outflow.

    Space-ng Software Engineers Added
    15
    Q2 FY26

    Acquisition adds approximately 15 software engineers.

    Miranda Engine Hot Fire Tests
    150+
    YTD

    Miranda engine designed for reusability.

    Miranda Engine Flight-like Mission Duty Cycle Test Duration
    226 secondssurpassed 206 seconds full Mission Duty Cycle duration
    Q2 FY26

    Successful test demonstrating performance needed for launch stress requirements.

    Spacecraft Campus Expansion
    quadrupling
    Q2 FY26

    Supported by a grant from the Texas Space Commission.

    Cortex Engineering Facility Size
    55,000
    Q2 FY26

    Opened in spring, added for subsystems production, improving pace of harnessing, batteries, and avionics.

    Revenue Booked for 2026
    95%
    FY26

    Based on the midpoint of guidance.

    Alpha Production Throughput Increase
    significantly increased
    May-August

    Driven by new Alpha Mandrel tooling and more efficient Reaver chamber throughput.

    Alpha Mandrel Tooling Impact
    improvements
    Q2 FY26
    Reaver Chamber Throughput
    increased
    Q2 FY26
    CLPS 2.0 Program Value
    $6 billion
    Future

    Firefly submitted a proposal for this program.

    NASA SkyFall Subcontract Value
    $13 million
    Q2 FY26

    Awarded through JPL for manufacturing, testing, and delivering the mission aeroshell for Mars.

    Space Force GBRD Contract Value
    $94 million
    Q2 FY26

    For Ground-Based Radar Digitization effort, leveraging FORGE playbook.

    Space Force Budget Increase
    significant year-over-year increases
    Future

    Space is a national security priority.

    Space Force Budget Increase (Tactically Responsive Space)
    could quadruple
    2026-2027

    From 2026 to 2027 numbers.

    Industry KPIs

    5
    MetricValueDetails
    Launch cadence3 launcheslaunches
    Total company backlog$1.5 billionUSD
    Defense program awards$94 millionUSD
    Production rates by program
    Production capacity expansionquadruplingspace

    Orderbook & backlog

    1
    Total Backlog$1.5 billionJune 30, 2026

    up from $1.3 billion last quarter

    Represents significant growth even after converting $117.7 million into quarterly revenue.

    Product announcements

    2
    ProductTypeDetails
    MoonFalllaunch
    SkyFalllaunch

    Deals & partnerships

    6
    Space-ngLeader in AI-powered vision navigation and autonomous guidance systems.

    Acquired Space-ng to further vertical integration, bringing proven spacecraft software and camera hardware for Blue Ghost and Elytra, bolstering capabilities for autonomous space operations.

    Benchmark Space SystemsPartnering on DARPA LASSO program.

    Firefly will help the mission operate safely and persistently in very low lunar orbit, utilizing the newly acquired Space-ng team and their vision navigation hardware and software.

    Lockheed MartinMulti-launch agreement extension.extended for 2 years to 2031

    Extension of multi-launch agreement, providing visibility into out years for Alpha manifest.

    Confidential CustomerSecond hypersonic task order for Alpha.

    Alpha Block II uniquely suited to launch multiple hypersonic missiles, helping burn down backlog of hypersonic testing.

    SSC Space (Sweden)Collaboration on Esrange Space Center launch site.

    SSC Space completed critical milestones for launch pad readiness, including payload processing facility, horizontal integration building, ground support equipment, and launch control center. First launch targeted for no earlier than 2028.

    [Space Katana] (Japan)Partnership to replicate Sweden's launch blueprint.

    Partners from Japan are eager to replicate Sweden's blueprint on their side of the Pacific, indicating potential for future global launch sites.

    Capital programs

    1
    Spacecraft Production Capacity Increaseunderway
    Period spend: $24.8 million

    Benefit: quadrupled spacecraft clean room space; expanded Cedar Park campus with new headquarters; added Gloworks innovation lab

    Strategic investments to increase spacecraft production capacity, timely given NASA Moon-based contract awards. Includes test stand upgrades for Alpha Block II and expansion of spacecraft manufacturing.

    Risks & headwinds

    4
    Launch Timing VariabilityOngoing

    Alpha Flight 8 moved to Q4 FY26 from late summer.

    Mitigation: Management acknowledges dependence on customer readiness, regulatory approval, range availability, and weather conditions; plans thorough review of post-Flight 8 data for subsequent launches.

    Geopolitical Conflicts and Missile ThreatsOngoing

    Iran conflict processed over thousands of threat messages in first few weeks.

    Mitigation: Leveraging AI capabilities (FORGE program) to provide battle space awareness, tactical missile warning/tracking, and strategic missile warning/tracking to keep nation and allies safe.

    Supply Chain and Production Constraints (Alpha)Near-term

    Alpha production throughput significantly increased between May and August.

    Mitigation: Increasing Alpha production throughput significantly (May-August) through new Mandrel tooling, efficient Reaver chamber utilization, and Cortex engineering facility expansion.

    Free Cash Flow OutflowQ2 FY26

    $106.3 million outflow in Q2 FY26, up from $78.9 million in Q1 FY26, primarily due to $24 million SciTec acquisition payment.

    Mitigation: Strategic acquisitions (SciTec, Space-ng) are expected to drive future growth and profitability; focus on operational milestones to drive financials.

    What to watch in Q3 FY26

    5

    Alpha Flight 8 Launch

    Q4 FY26
    CurrentTargeting Q4 FY26
    TargetSuccessful launch

    Why it matters

    Successful launch of the first Block II Alpha is crucial for validating new capabilities, increasing launch cadence, and meeting strong market demand.

    Shifting to launch, we are driving forward to launch our first Block II Alpha with Flight 8 now targeting the fourth quarter of the year.

    Q&A highlights

    8

    Inquired about the Lockheed Martin extension, hypersonic task order, and the shift of Alpha Flight 8 to Q4, asking about Alpha's overall readiness and ability to meet demand.

    Jason Kim emphasized strong and amplified demand for Alpha launches from existing and new customers, including the Lockheed Martin extension and a second hypersonic task order. He highlighted record production from the factory, with Flight 8 in integration and testing, and Flights 9, 10, and 11 progressing well. He noted that production ramp-up is key to meeting demand, not backlog or demand itself.

    The demand for launch is increasingly getting amplified. This is the most constrained you see in launch. And so there is strong demand that we see with Alpha.

    asked by Sheila Kahyaoglu · answered by Jason Kim

    2 min read6 chapters

    Detailed Narrative

    01

    Spacecraft and Lunar Missions Momentum

    Firefly's Spacecraft Solutions business is experiencing significant growth, driven by five parallel lunar missions. The company secured its fifth and sixth moon mission contracts in Q2, adding two more missions for 2028. Notably, NASA awarded an accelerated Blue Ghost lander mission, aiming for faster production cycles and multiple annual lunar landings. The Blue Ghost Mission 2 (far side) is preparing for an early 2027 launch, showcasing a complex multi-stage mission with international payloads.

    02

    Launch Vehicle Development and Capacity Expansion

    Firefly is advancing its launch vehicle programs, Alpha and Eclipse. The first Block II Alpha (Flight 8) is targeting Q4 FY26, with two additional launches planned for the year. Production rates for Alpha are significantly increasing, with airframes for Flights 10 and 11 already in the pipeline. The company is expanding its launch infrastructure, planning to bring the Wallops launch pad online in 2027 and the Swedish Space Corporation launch pad in 2028, increasing cadence capacity.

    03

    AI Software and National Security Wins

    The SciTec National Security AI team secured multiple significant contracts, including a U.S. Air Force contract option for the operational data fusion system and an Air Force Research Laboratory award for advanced AI algorithm development. Firefly was also announced as a prime contractor for the Golden Dome program and recently won a $94 million Space Force contract for the Ground-Based Radar Digitization (GBRD) effort, leveraging its battle-tested FORGE playbook.

    04

    Strategic Acquisitions and Vertical Integration

    Firefly acquired Space-ng, a leader in AI-powered vision navigation and autonomous guidance systems, enhancing its vertical integration for Blue Ghost and Elytra spacecraft. This acquisition adds approximately 15 software engineers and provides proven technology for autonomous space operations, as demonstrated by Blue Ghost Mission 1's hazard avoidance capabilities.

    05

    Eclipse Progress and Engine Qualification

    Development of the medium-lift Eclipse vehicle is progressing, with the Miranda engine designed for reusability crossing 150 hot fire tests. A key milestone was the flight-like Mission Duty Cycle test, where the engine fired for 226 seconds, exceeding the required duration. Qualification campaigns for COPVs and the first stage tank are underway, with flight Miranda engine chambers already in production, aiming for first stage delivery to Northrop Grumman no earlier than 2027.

    06

    Lunar Infrastructure and Mars Expansion

    Firefly is actively pursuing larger lander designs for the CLPS 2.0 program to support increased payload mass and volume for Moon base infrastructure. The company also secured a $13 million subcontract for NASA's SkyFall mission to Mars, marking its first extension of core lunar capabilities to Mars, manufacturing the mission aeroshell for a late 2028 launch.

    AI-generated summary of the company’s earnings call. Not investment advice.