Firefly Aerospace Inc. FLY emphasized backlog conversion, spacecraft scale and a higher launch-production rate on its second-quarter 2026 call. Management framed demand as strong across lunar, defense and launch programs, with execution the main variable.
Non-GAAP loss per share was 42 cents, narrower than the Zacks Consensus Estimate of a 50-cent loss. Revenues of $117.7 million surpassed the Zacks Consensus Estimate of $89.6 million by $28.1 million.
FLY Sees Spacecraft as the 2026 Revenue Anchor
Chief financial officer (CFO) Darren Ma said Spacecraft Solutions generated $108.3 million in revenues, versus $9.4 million from Launch. Drivers included five lunar missions, AI software and an accelerated national-security hardware order.
Darren Ma said 95% of revenues at the midpoint of 2026 guidance is booked. Spacecraft revenues are milestone-based and less event-driven than Alpha launches.
Darren Ma said backlog reached about $1.5 billion, up from $1.3 billion in the first quarter. Awards included two NASA lunar missions and Lockheed Martin’s Alpha agreement extension.
Firefly Holds Its Full-Year Revenue Outlook
CFO Darren Ma reiterated 2026 revenue guidance of $420-$450 million. Management now targets three Alpha launches in 2026, including Flights 8 and 9 later this year.
In the Q&A session, a KeyBanc Capital Markets analyst asked whether strength outside Alpha was offsetting the lower launch count. Darren Ma pointed to lunar programs, FORGE, Golden Dome and recent contract wins as offsets.
Darren Ma added that another CLPS award late in the year could push revenues toward the upper end. He tied the outlook to execution, with most expected 2026 revenue under contract.
FLY Pushes the Alpha Ramp Into Q4
Chief executive officer (CEO) Jason Kim said Flight 8 is targeted for the fourth quarter after acceptance testing, Vandenberg delivery, static fire and payload integration. Flight 9 is entering integration and test.
CEO Jason Kim said demand is not the constraint. The majority of Alpha’s 2027 manifest is sold, while production throughput improved from May through August across composite structures, Reaver engines and subsystems.
A Deutsche Bank analyst pressed for 2027 cadence. Jason Kim did not provide guidance, but cited growing hardware availability and launch-team repetition. He also maintained Eclipse’s inaugural launch timing at no earlier than 2027.
Firefly Expands Its Lunar Mission Pipeline
CEO Jason Kim highlighted two additional Moon mission wins: a $144 million accelerated Blue Ghost CLPS mission and a $75 million MoonFall subcontract using Elytra. The accelerated Blue Ghost mission uses a near build-to-print configuration.
In the Q&A session, Jason Kim said that three additional CLPS 1.0 opportunities remain in the second half: two lander missions and one orbiter imaging-service opportunity. Firefly also submitted a CLPS 2.0 proposal.
Jason Kim said the CLPS 2.0 design is modular and aimed at multi-ton payload capability. He also cited quadrupled spacecraft cleanroom space and the Space-ng acquisition as capacity support.
FLY Ties Margin Progress to Scale and Mix
CFO Darren Ma said GAAP gross margin was 20.3%, down from 21.6% sequentially, mainly due to FORGE hardware purchases. He expects margins to expand as spacecraft volume rises and Alpha cadence improves.
A Morgan Stanley analyst asked about profitability and cash milestones. Darren Ma said more Blue Ghost missions should spread fixed manufacturing overhead, while commercial payloads and Ocula imaging can add higher-margin revenue.
Darren Ma said the path to positive EBITDA and free cash flow depends on Alpha reaching rate, completing Eclipse development and continuing the spacecraft ramp. Firefly ended the quarter with $940.3 million of total liquidity.
Firefly Keeps Execution at the Center
CEO Jason Kim closed by emphasizing production scaling, spacecraft expansion and the integration of SciTec and Space-ng. His message centered on matching a broader contract base with operating capacity.
Jason Kim acknowledged launch timing dependencies, including customer readiness, regulatory approvals, range availability and weather. The call paired confidence in demand with continued attention to schedule and production execution.
FLY’s Zacks Signals Remain Mixed
FLY carries a Zacks Rank #3 (Hold), with a Value Score of F, Growth Score of C, Momentum Score of D and VGM Score of F. Under Zacks’ framework, A and B scores are more favorable, especially alongside Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks. You can see the complete list of today’s Zacks #1 Rank stocks here.
The current mix gives FLY a less favorable near-term profile than the #1/#2 and A/B combinations emphasized by Zacks. The Zacks Rank can change as analyst earnings estimates are revised after the just-reported results, so the rating may move as revisions develop.
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Firefly Aerospace, Inc. (FLY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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