CEDAR PARK, Texas, Aug 11, 2026, 16:52 EDT
- Record quarterly revenue reached $117.7 million, up 659%.
- Free cash flow was negative $106.3 million.
- The $420 million to $450 million annual revenue guide was unchanged.
Firefly Aerospace Inc. NASDAQ:FLY shares slipped 0.6% to $26.20 in preliminary extended trading on Tuesday. Record quarterly sales beat expectations, but cash burn nearly matched revenue. The regular session had ended 2.3% higher at $26.36.
The muted reaction puts cash conversion at the centre of the investment case. Revenue rose fast, yet free cash flow worsened to negative $106.3 million. Adjusted EBITDA also remained deeply negative.
That gap matters at Firefly’s current valuation. The company is valued for sustained execution across launch, spacecraft and lunar programmes. One strong quarter alone does not settle that test.
| Q2 scorecard | Q2 2026 | Q2 2025 | Change / comparison |
|---|---|---|---|
| Revenue | $117.7m | $15.5m | +659%; above $89.6m consensus |
| Adjusted loss per share | $0.42 | Not comparable | Better than $0.52 consensus loss |
| GAAP net loss | $92.3m | $63.8m | Loss widened 44.7% |
| Gross margin | 20.3% | 25.7% | Down 5.4 percentage points |
Revenue exceeded the pre-release consensus by about 31%. The adjusted loss per share was also narrower than expected. Those estimates came from third-party analyst compilations and remain subject to revision.
Profit measures gave a more mixed signal. Gross profit reached $23.9 million, but operating expenses were $119.1 million. The operating loss was therefore $95.2 million.
| Cash conversion | Q2 2026 | Q2 2025 |
|---|---|---|
| Operating cash used | $81.6m | $25.9m |
| Capital spending and internal software | $24.7m | $11.4m |
| Free cash flow | -$106.3m | -$37.3m |
| Free cash flow / revenue | -90.3% | -239.7% |
The ratio improved sharply because revenue scaled. Absolute cash use still nearly tripled. Firefly held $635.3 million in cash and short-term investments at quarter-end.
The balance was strengthened by $181.6 million of net public-offering proceeds. Net cash was about $608.3 million after reported notes payable. That provides runway, though spending remains substantial.
| Outlook and valuation test | Value |
|---|---|
| First-half 2026 revenue | $198.6m |
| Full-year revenue guidance | $420m-$450m |
| Second-half revenue needed at midpoint | $236.4m |
| Cash plus short-term investments | $635.3m |
| Estimated enterprise value / guidance midpoint | About 8.6 times |
The guidance midpoint requires $236.4 million of second-half revenue. That is almost exactly two more quarters at the latest run rate. The hurdle looks attainable, but leaves little room for programme delays.
Chief Executive Jason Kim said, “Breaking the $100 million mark with another quarterly revenue record demonstrates Firefly’s amplified growth.” Firefly reported more than six contract wins during the quarter. Company release
Those awards included a $144 million NASA lunar contract and a $94 million U.S. Space Force deal. Firefly also extended a Lockheed Martin Corp. NYSE:LMT launch agreement to as many as 25 missions through 2031.
| Analyst recommendations | Count / value |
|---|---|
| Buy | 7 |
| Hold | 4 |
| Sell | 1 |
| Consensus | Moderate Buy |
| Average target | $40.64 |
| Target range | $25-$60 |
The average target implies about 54% upside from Tuesday’s close. However, these targets pre-date the latest results. Estimate changes now matter more than the old average.
The stock gained 13.0% from its Aug. 4 close through Tuesday. Next week’s focus is whether analysts lift revenue estimates without widening expected losses.
Risks: Launch failures, contract timing and cost overruns can shift revenue between quarters. The preliminary after-hours price also reflects thinner trading than the regular session.
Wall Street closed lower before the release. The S&P 500 lost 0.35%, while the Nasdaq fell 0.74%. Firefly’s regular-session gain therefore outpaced the broad market.
Related articles: NASDAQ:FLY
