What Every Firefly Aerospace Investor Should Know Before Buying

Since flying onto the scene with an initial public offering (IPO) over the summer, Firefly Aerospace (NASDAQ: FLY) has captured the interest of investors looking for the next great space stock opportunity.

But for those interested in reaching for the stars with Firefly stock, it's important to shine a light on the company and get to know it a little better.

Image source: Getty Images.

Firefly is shooting for the moon -- and succeeding

While the company's name summons images of glowing bugs filling summer nights here on Earth, Firefly's business focuses on lunar operations. In its third quarter 2025 10-Q, for example, Firefly states its expectation that its Blue Ghost lander will "fly annual missions to the Moon, with payload services customized to the technology and exploration goals of our customers."

Illustrating the company's success in generating revenue from its lunar operations, Firefly received a $177 million award from NASA in July to deliver five payloads to the Moon's south pole in 2029 under the space agency's Commercial Lunar Payload Services (CLPS) contract. According to management, this award significantly contributed to the company's increase in backlog to $1.3 billion, up from $1.1 billion at the end of 2024.

It's not only NASA that sees Firefly as a partner for missions to the moon. The company reported in Q3 2025 that a commercial customer selected it for a separate mission requiring the company's Blue Ghost lunar lander.

Going for the gold

Expanding its scope beyond the moon, Firefly is positioning itself to develop into a defense contractor. Earlier this month, Firefly completed the acquisition of SciTec for $855 million -- an acquisition that Firefly believes will make it a more attractive option for the Pentagon's $175 billion missile defense project: Golden Dome.

Prior to the acquisition, SciTec had already proved its mettle as a partner for the U.S. government. The U.S. Space Force awarded a $259 million contract to enhance the military branch's missile warning and tracking capability.

In addition to SciTec, Firefly's interest in pursuing defense opportunities is demonstrated by the company's current partnership with Kratos Defense and Security to develop hypersonic capabilities for national defense.

Should investors light up their portfolios with Firefly stock?

For those focused on the final frontier, Firefly stock is undeniably a worthy consideration. It's critical, however, that investors recognize that a Firefly investment requires investors to be comfortable with the likelihood of enduring volatility. As a growth company that hasn't achieved profitability yet, Firefly has a higher risk profile, and setbacks such as the one it encountered in September can drive the market to punish the stock.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.