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Firefly Aerospace Inc. (NASDAQ:FLY) stock rose during Wednesday's premarket session after the company reported better-than-expected third-quarter financial results and raised the lower end of its full-year revenue forecast.
The space technology company posted strong revenue growth, fueled by expanding launch, lunar and spacecraft operations.
Firefly reported third-quarter revenue of $110.7 million, up 259% year over year. Revenue topped Wall Street's estimate of $102.30 million.
The company posted an adjusted loss of 45 cents per share, narrower than the expected 48-cent loss.
Firefly's non-GAAP operating loss widened to $78.7 million from $52.8 million a year earlier.
Adjusted EBITDA loss widened to $69.5 million from $46.3 million a year earlier.
Meanwhile, Firefly's order backlog reached a record $1.7 billion. Total liquidity stood at $839.7 million, including $409.3 million in cash and cash equivalents, $125.4 million in short-term investments and $305 million in available credit.
Firefly narrowed its full-year revenue forecast to $440 million to $450 million, compared with its previous range of $420 million to $450 million.
Firefly expects revenue from its agreement with AST SpaceMobile Inc. (NASDAQ:ASTS), valued at more than $1.3 billion, to ramp up in 2027 as it meets contract milestones.
Management expects revenue to increase as engine deliveries ramp up in the agreement's second year. Revenue from intellectual property licensing and support services is also expected to improve gross margins.
Firefly plans to announce its 2027 Alpha launch forecast during its fourth-quarter earnings call.
Firefly is preparing for Alpha Flight 8, scheduled for the first quarter of 2027, which will debut its upgraded Block 2 configuration.
The company is also advancing production for Flights 9 through 12. It has 24 Reaver engine chambers in production to expand launch capacity.
CEO Jason Kim said demand for Alpha launches has reached record levels, outpacing the company's near-term rocket supply.
"We have more customers than we have rockets available in the near-term manifest," Kim said.
The strong demand is driving Firefly to expand production capacity and ramp up its upgraded Alpha Block 2 rocket program.
Recent agreements include two launches from Sweden with SSC Space and up to 10 launches for Japan's Synspective through 2030.
Firefly also extended its agreement with Lockheed Martin and secured another hypersonic mission order.
Meanwhile, its Eclipse rocket program completed more than 175 Miranda engine hot-fire tests, totaling 4,230 seconds across 20 engines.
Firefly is developing the reusable medium-lift rocket with Northrop Grumman.
Firefly is working on five lunar missions simultaneously.
The company's expanded clean room has quadrupled its assembly, integration, and testing space, allowing it to accommodate up to 12 lunar landers and orbital vehicles simultaneously.
Blue Ghost Mission 2 completed proof testing ahead of its planned 2027 launch. Meanwhile, the Gruithuisen Domes mission entered hardware production for a planned 2028 launch.
Firefly also signed an agreement with StarCloud to test advanced AI computing technology aboard its Electra spacecraft, supporting plans for a potential lunar-orbit data center.
The company's Blue Ghost south pole mission completed its critical design review. The mission will investigate potential lunar water ice resources.
Additionally, Firefly secured a $75 million NASA Moonfall subcontract through its Electra program.
Firefly also secured a $13 million subcontract to support NASA's SkyFall mission, marking the company's first Mars project.
FLY Price Action: Firefly Aerospace shares were up 1.27% at $24 during premarket trading on Wednesday, according to market data.
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