NEW YORK, Feb 2, 2026, 15:20 (ET) — Regular session
- Shares of Firefly Aerospace dropped roughly 10%, settling at $22.62 in the afternoon session
- A post-IPO lock-up ends on Feb. 3, which could free up a sizable block of shares for resale
- Traders are eyeing insider sales once the restriction lifts, along with a February 7 lock-up related to an acquisition
Shares of Firefly Aerospace Inc dipped in Monday afternoon trading, dropping $2.58, or 10.2%, to $22.62. Investors appear wary ahead of the upcoming post-IPO share lock-up expiration. The stock fluctuated between $22.35 and $25.37 during the session, with roughly 3.5 million shares exchanged.
Timing is crucial here since lock-ups prevent insiders and early investors from offloading shares for a set period post-IPO, tightening supply. Once that window closes, the volume of shares available to trade often jumps, occasionally quite suddenly.
A company prospectus revealed that about 125.9 million shares could become eligible for sale after the lock-up ends on Feb. 3, though U.S. securities rules impose certain limits. Firefly, along with its officers, directors, and major shareholders—including AE Industrial Partners—have agreed not to sell shares from Aug. 6, 2025, through Feb. 3, 2026, without the underwriters’ permission. The filing also noted a separate restriction on shares acquired through an acquisition, which extends until Feb. 7, 2026. (SEC)
The decline happened while the broader market stayed firm. The S&P 500 gained roughly 0.3% on the day, per Reuters market data. (Reuters)
Firefly, the company behind launch vehicles and lunar landers, pulled in $868.3 million from an upsized Nasdaq IPO priced at $45 a share this August. Since then, the stock has dropped about 50% from its debut price. (Reuters)
Shares of other space-related companies dropped as well. Redwire slipped roughly 6%, AST SpaceMobile lost about 5.5%, and Intuitive Machines declined close to 6% in afternoon trading.
That said, the end of the lock-up period won’t automatically trigger a flood of sales. Some shareholders might hold steady, and insiders are restricted in how much they can offload within short timeframes, based on their roles and the stock’s trading status.
The risk for bulls is clear: if sellers flood the market as restrictions ease, the surge in supply might overwhelm demand and drag the stock down, particularly given its low trading volume. Even a small operational hiccup — whether a postponed launch, a mission glitch, or a lost contract — could quickly sour sentiment in this niche sector.
Investors have their eyes on Tuesday, Feb. 3, expecting stock to hit the tape following the lock-up expiry, along with any insider sales that might be disclosed. Then there’s the Feb. 7 deadline, connected to shares issued as part of the acquisition.
