Why Shares of Firefly Aerospace Are Losing Altitude Today

Key Points

• Firefly reported year-over-year declines in sales and net income.

• The company reported a backlog of $1.3 billion.

• Management projects 2025 revenue of $133 million to $145 million.

• 10 stocks we like better than Firefly Aerospace ›

Firefly Aerospace (NASDAQ: FLY) reported its first quarterly earnings report after the market closed yesterday, and investors weren't impressed. Although there were some bright spots in the company's second-quarter 2025 financial results, investors are more attuned to the less-than-glowing areas in the presentation.

As of 11:22 a.m. ET, shares of Firefly are down 11.8%.

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Investors see a lack of growth as a warning sign

Firefly reported Q2 2025 consolidated revenue of $15.5 million, a 26% decline from the same period last year. In Q2 2025, launch revenue totaled $6.3 million, and spacecraft solutions revenue came in at $9.2 million. While the launch revenue in the recently completed quarter was a 113% year-over-year improvement, it failed to make up for the 49% year-over-year decrease in spacecraft solutions revenue.

At the bottom of the income statement, Firefly also failed to ignite growth. The company reported a Q2 2025 net loss of $63.8 million -- 19% lower than the $53.5 million net loss it reported in Q2 2024.

Looking ahead, Firefly projects 2025 revenue of between $133 million and $145 million. Should the company achieve this guidance, it will represent a considerable improvement over the $60.8 million in sales it generated for 2024.

Does today's sell-off represent a buying opportunity for space investors?

Investors may fear the drop in Firefly stock today is an inauspicious development with the company reporting its first quarterly earnings report following its initial public offering (IPO) over the summer. But this would be a bit shortsighted. Management is confident that 2025 will provide growth on the top line, supported by the fact that the company also reported a backlog of $1.3 billion at the end of July.

For a growth company like Firefly that recently held an IPO, volatility in the stock price is to be expected, so today's drop is unsurprising. If you were bullish on Firefly yesterday, nothing's changed, and now may be a good time to pick up even more shares of this space stock.

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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.