Firefly Aerospace (FLY) shares are lighting up the premarket Tuesday, surging more than 11% after the space and defense tech company reported first-quarter earnings that beat expectations. The numbers came out after the close on Monday, and investors clearly liked what they saw.

Earnings Snapshot

Revenue hit $80.88 million, topping the consensus estimate of $77.07 million, according to market data. The boost came from its Blue Ghost lunar lander and Electra spacecraft programs — both of which are seeing strong demand from NASA and national security customers. The company reported an adjusted loss of 46 cents per share, beating the expected loss of 48 cents per share.

But it's not all smooth sailing. Firefly ended the quarter with a backlog of roughly $1.3 billion, which gives it solid long-term visibility. However, profitability remains under pressure: adjusted EBITDA loss was $64.7 million, and free cash flow was negative at $78.9 million. Margins took a hit from a higher mix of cost-plus contracts and elevated R&D spending as the company continues to invest in infrastructure, manufacturing, and technology.

Looking ahead, Firefly reiterated its full-year 2026 revenue guidance of $420 million to $450 million, which brackets the consensus estimate of $432.45 million. The company is betting on sustained demand from NASA and national security customers to hit those numbers.

Major Deals & Contract Wins

Firefly hasn't been sitting still. During the quarter, it teamed up with Nvidia (NVDA) to enable rapid, on-orbit data processing for its Ocula Moon imaging service. The collaboration integrates an Nvidia Jetson module into high-resolution telescopes developed by Lawrence Livermore National Laboratory, ahead of deployment on Firefly's Elytra orbital vehicle. That's a fancy way of saying they're putting AI brains in space.

On the defense side, Firefly secured new agreements with the United States Space Force for a space-based interceptor program. The company is also advancing development of its reusable Eclipse rocket, which could be a game-changer for rapid-response launch capabilities.

Key Developments

Firefly is expanding its lunar exploration efforts under NASA's Artemis initiative. The company is scaling its Blue Ghost lander — following a successful commercial lunar mission — for a higher launch cadence. Meanwhile, its Electra vehicle is advancing capabilities in communications, imaging, and lunar infrastructure.

Defense work is also growing through Firefly's SciTech unit, which has secured contracts with the U.S. Space Force, including participation in the Golden Dome missile defense initiative. Its AI-enabled systems are already being used for missile tracking and space domain awareness.

And then there's the Eclipse rocket: a reusable medium-lift vehicle that Firefly is developing to demonstrate rapid-response launch capabilities through military exercises. If successful, it could give the company a significant edge in both commercial and defense markets.

FLY Price Action: Firefly Aerospace shares were up 11.87% at $37.33 during premarket trading on Tuesday, according to market data.