Firefly Aerospace Inc. (FLY) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended June 30, 2026. Firefly Aerospace Inc. is a space and defense technology company providing launch vehicles (Alpha, Eclipse) and spacecraft solutions (Blue Ghost, Elytra) to government and commercial customers. The company operates as a single segment and is classified as an emerging growth company. Key recent developments include the completion of its IPO in August 2025, the acquisition of SciTec, Inc. in October 2025, and the acquisition of Space-ng Inc. in June 2026.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|
| Revenue | $117.7 million | $198.6 million | $71.4 million |
| Gross Profit | $23.9 million | $41.3 million | $6.2 million |
| Gross Margin | 20.3% | 20.8% | 8.7% |
| Net Loss | $(92.3) million | $(189.0) million | $(123.9) million |
| Diluted EPS | $(0.57) | $(1.18) | $(11.17) |
| Operating Cash Flow | N/A | $(144.1) million | $(84.6) million |
| Cash & Short-Term Investments | $635.3 million (as of June 30, 2026) | ||
| Total Debt (Net) | $27.0 million (as of June 30, 2026) |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 657% quarter-over-quarter and 178% year-over-year (YTD). This surge is primarily driven by the inclusion of SciTec (acquired Oct 2025) and progress on Blue Ghost and Elytra missions.
- Expense Increases: Operating expenses rose significantly due to R&D ramp-up for the Alpha Block II configuration, increased stock-based compensation, and the integration of SciTec. SG&A expenses increased 278% QoQ.
- Debt Reduction: The company repaid its $260 million Revolving Credit Facility in February 2026. As of June 30, 2026, the facility was undrawn, and total debt decreased to approximately $27 million (primarily notes payable related to failed sale-leaseback transactions).
- Capital Raise: In June 2026, the company completed a registered equity offering, raising net proceeds of $181.6 million from the primary sale of 4.0 million shares.
Outlook, Risks, and Management Commentary
- Backlog: Total backlog stands at approximately $1.47 billion as of June 30, 2026, providing visibility into future revenue.
- Operational Milestones: The company successfully completed its first lunar landing (Blue Ghost) in March 2025 and has four additional missions planned through 2029. The Eclipse launch vehicle is in development with a first launch expected from Wallops Island.
- Liquidity: Management believes cash, cash equivalents, short-term investments ($635.3 million), and the available Revolving Credit Facility ($305 million capacity) are sufficient to meet liquidity requirements for at least the next 12 months.
- Risks: Key risks include the unpredictability of space operations (launch failures), dependence on U.S. government funding and appropriations, potential delays in regulatory approvals, and the ability to achieve profitability as the company scales production.
- Legal Proceedings: The company is defending against a putative securities class action lawsuit filed in November 2025 regarding statements about Spacecraft Solutions and the Alpha rocket. A motion to dismiss is pending.
Investor Verification Checklist
- Revenue Recognition: Verify the timing of revenue recognition for Spacecraft Solutions contracts, which are recognized over time using a cost-to-cost method, and the impact of variable consideration.
- Contract Loss Provisions: Review the $11.7 million in contract loss provisions recorded as of June 30, 2026, related to firm-fixed-price contracts.
- Acquisition Integration: Assess the financial impact and synergies of the SciTec and Space-ng acquisitions, including the $153 million in acquired intangible assets subject to amortization.
- Debt Covenants: Confirm compliance with the Revolving Credit Facility's minimum liquidity covenant of $381.3 million.
- Legal Exposure: Monitor the status of the pending securities litigation and potential financial impact.