0001860160-26-000009
SEC filingRevenue grew 45% YoY driven by Spacecraft Solutions and Alpha Flight 7, but operating losses widened on higher R&D and SG&A costs.
For the three months ended March 31, 2026, Firefly Aerospace reported total revenue of $80.9 million, a 45% increase from $55.9 million in the same period of 2025. The growth was driven by a 156% surge in Launch revenue to $13.3 million, attributable to the successful Alpha Flight 7 launch, increased progress on Eclipse design and manufacturing, and engineering services for launch facility development. Spacecraft Solutions revenue rose 33% to $67.6 million, reflecting contributions from the SciTec acquisition (closed October 31, 2025) and continued progress on Blue Ghost Missions 2, 3, and 4, partially offset by the absence of Blue Ghost Mission 1 revenue recognized in Q1 2025.
Gross profit improved dramatically to $17.5 million (21.6% margin) from $2.2 million (4.0% margin) in the prior year, as cost of sales grew only 18% versus 45% revenue growth, indicating improved operational leverage and a favorable mix shift toward higher-margin contracts.
Operating expenses rose 86% to $113.1 million. R&D costs increased 41% to $67.5 million, driven by Alpha program costs (Flight 7 and Block II configuration upgrade), stock-based compensation, and depreciation on new assets. SG&A expenses surged 258% to $45.6 million, primarily due to a full quarter of SciTec expenses, stock-based compensation, and public company infrastructure costs. As a result, operating loss widened 63% to $95.7 million.
Net loss was $96.7 million, compared to $60.1 million in Q1 2025. Adjusted EBITDA was negative $64.7 million versus negative $47.1 million. Free cash flow was negative $78.9 million, a 33% deterioration from negative $59.2 million, driven by $16.3 million in capex and $125.0 million placed into short-term time deposits.
Launch revenue more than doubled year-over-year, reflecting the successful Alpha Flight 7 mission and ongoing Eclipse development. Spacecraft Solutions remains the dominant revenue contributor (84% of total), with growth fueled by SciTec and Blue Ghost mission progress. The company operates as a single reportable segment, but the two product lines show diverging trajectories: Launch is scaling from a smaller base with high growth rates, while Spacecraft Solutions provides the bulk of current revenue and benefits from a diversified contract mix (firm-fixed-price, cost-plus, and time-and-materials).
Management highlighted a $1.29 billion backlog as of March 31, 2026, with $344.8 million in multi-launch agreements. The company expects to continue ramping Alpha production, complete Eclipse development, and execute three additional Blue Ghost missions through 2029. Key strategic priorities include expanding launch pad operations (Wallops Island, Sweden), replicating manufacturing processes to reduce cycle times, and integrating SciTec's AI-enabled defense software. Liquidity remains strong with $551.6 million in cash and short-term investments and an undrawn $305.0 million Revolving Credit Facility (amended April 3, 2026). The company believes it has adequate liquidity for at least 12 months, though it continues to incur negative cash flows from operations and has an accumulated deficit of $1.1 billion.