Firefly Aerospace Inc.

Previous wording

Spacecraft Solutions: Firefly is the only company to achieve a fully successful Moon landing, completing all 17 objectives set out before launch. We expect our Blue Ghost lander to fly annual missions to the Moon, with payload services customized to the technology and exploration goals of our customers. Offering ride-share opportunities and dedicated missions, Blue Ghost is built to host and deliver payloads nearly anywhere on the lunar surface. Blue Ghost Mission 2 will land on the far side of the Moon and conduct at least 10 days of lunar surface operations with the Blue Ghost lander, with an Elytra Dark spacecraft supporting as a communications relay. Elytra Dark is one of three Elytra configurations supporting on-orbit servicing missions. This Elytra Dark spacecraft is expected to remain operational in lunar orbit for up to five years. Mission 2 is fully manifested with both NASA and commercial payloads, including a commercial rover and a ride-sharing international satellite. Blue Ghost Mission 3, already under contract from NASA, has selected Blue Origin as the partner to deliver their rover to the lunar surface. Firefly recently was awarded Blue Ghost Mission 4 by NASA for landing at the Moon’s south pole region. Additionally, we have been selected by a proprietary commercial customer for a separate dedicated Blue Ghost lander mission.

Current wording

Spacecraft Solutions: Firefly is the only company to achieve a fully successful Moon landing, completing all 17 objectives set out before launch. We expect our Blue Ghost lander to fly annual missions to the Moon, with payload services customized to the technology and exploration goals of our customers. Offering ride-share opportunities and dedicated missions, Blue Ghost is built to host and deliver payloads nearly anywhere on the lunar surface. Blue Ghost Mission 2 will land on the far side of the Moon and conduct at least 10 days of lunar surface operations with the Blue Ghost lander, with an Elytra Dark spacecraft supporting as a communications relay. Elytra Dark is one of three Elytra configurations supporting on-orbit servicing missions. This Elytra Dark spacecraft is expected to remain operational in lunar orbit for up to five years. Mission 2 is fully manifested with both NASA and commercial payloads, including a commercial rover and a ride-sharing international satellite. Blue Ghost Mission 3, already under contract from NASA, has selected Blue Origin as the partner to deliver their rover to the lunar surface. Blue Ghost Mission 4 was awarded in July 2025 by NASA for landing at the Moon’s south pole region. Additionally, we have been selected by a proprietary commercial customer for a separate dedicated Blue Ghost lander mission.

Previous wording

Customers: Our track record of success and our reputation as a trusted provider for our customers results in a highly attractive, diversified business model defined by significant backlog and cash flow visibility. Strong customer demand backs our financial profile with approximately $1.1 billion in backlog as of June 30, 2025 and multi-launch agreements across our product lines. With Firefly’s recent award of Blue Ghost Mission 4 by NASA, our backlog grew to $1.3 billion as of July 31, 2025. Underpinning our financial profile is the combination of efficient contract structure and milestone-based billing. Before launch, we typically have collected approximately 90% of the total contract value, which is highly advantageous as production ramps. We are also differentiated in our ability to successfully execute on fixed firm price contracts. We are ahead of the curve as the industry shifts in favor of fixed firm price contracts and are well-positioned to capitalize on this change.

Current wording

Customers: Our track record of success and our reputation as a trusted provider for our customers results in a highly attractive, diversified business model defined by significant backlog and cash flow visibility. Strong customer demand backs our financial profile with approximately $1.3 billion in backlog and multi-launch agreements across our product lines as of September 30, 2025. Underpinning our financial profile is the combination of efficient contract structure and milestone-based billing. Before launch, we typically have collected approximately 90% of the total contract value, which is highly advantageous as production ramps. We are also differentiated in our ability to successfully execute on fixed firm price contracts. We are ahead of the curve as the industry shifts in favor of fixed firm price contracts and are well-positioned to capitalize on this change.

Previous wording

Additionally, we have deep, long-term relationships with our key suppliers. By maintaining a vertically integrated manufacturing process, we are less reliant on the timelines of outside suppliers and reduce risk within our supply chain. Our suppliers, who are also well diversified, do not include any individual suppliers accounting for more than 20% of our total vendor costs for either the three or six months ended June 30, 2025 or 2024.

Current wording

Additionally, we have deep, long-term relationships with our key suppliers. By maintaining a vertically integrated manufacturing process, we are less reliant on the timelines of outside suppliers and reduce risk within our supply chain.

Previous wording

Our full suite of manufacturing capabilities is supplemented by four launch sites, which will continue to enhance flexibility and responsiveness for our missions. We are currently launching from the Vandenberg Space Force Base launch site in California. Additional launch sites are under construction at Virginia’s Mid-Atlantic Regional Spaceport on Wallops Island and the Esrange Space Center in Sweden, and future launch pad capacity will be unlocked from expansion at Cape Canaveral Space Force Station in Florida. Our significant scale and unique blueprint are strategically planned to support our increasing launch cadence as we grow.

Current wording

Our full suite of manufacturing capabilities is supplemented by four launch sites, which will continue to enhance flexibility and responsiveness for our missions. We are currently launching from the Vandenberg Space Force Base launch site in California. Additional launch sites are under construction at Virginia’s Mid-Atlantic Regional Spaceport on Wallops Island and the Esrange Space

Previous wording

The increase in backlog from December 31, 2024 to June 30, 2025 was primarily due to two new contracts for Alpha and two new contracts for engineering services. With Firefly’s recent award of Blue Ghost Mission 4 by NASA, our backlog grew to $1.3 billion as of July 31, 2025.

Current wording

The increase in backlog from December 31, 2024 to September 30, 2025 was primarily due to Blue Ghost Mission 4, two new contracts for Alpha, and two new contracts for engineering services related to the development of launch facilities on Wallops Island, Virginia and Esrange Space Center in Sweden.

Previous wording

Our industry is affected by government budget and spending levels, changes in demand, changes in policy positions or priorities, the domestic and global political and economic environment, and the evolving nature of the space and defense sectors. In particular, the expansion of adversarial budgets to fund the development of hypersonic technologies poses a direct threat to the U.S., fueling this market momentum. Total state-sponsored defense spending is projected to grow from $66 billion in 2023 to $180 billion in 2035 according to the World Economic Forum and McKinsey. Any changes in budget and spending levels, policies, or priorities, including the current emphasis by the U.S. presidential administration on access to space, may have an adverse impact on our business and operating results. In addition, U.S. government procurement regulations impose various operational requirements on government contractors. Non-compliance with any of these regulations could materially adversely affect our operating results.

Current wording

Our industry is affected by government budget and spending levels, changes in demand, changes in policy positions or priorities, the domestic and global political and economic environment, and the evolving nature of the space and defense sectors. In particular, the expansion of adversarial budgets to fund the development of hypersonic technologies poses a direct threat to the U.S., fueling this market momentum. Any changes in budget and spending levels, policies, or priorities, including the current emphasis by the U.S. presidential administration on access to space, may have an adverse impact on our business and operating results. In addition, U.S. government procurement regulations impose various operational requirements on government contractors. Non-compliance with any of these regulations could materially adversely affect our operating results.

Previous wording

We expect to continue to ramp up our launch cadence as we increase our production rate on Alpha rockets, and complete development of Eclipse. We successfully completed our first lunar landing on March 2, 2025, with additional Blue Ghost missions planned in 2026 and 2028. Empowered by our successful Blue Ghost mission and common technologies across spacecraft, we believe we are well positioned to unlock adjacent markets and contracts via our multi-mission orbital vehicle, Elytra. Any delays in commencing our missions, including due to delays or cost overruns in obtaining licenses or other regulatory approvals, or entering into future agreements with additional customers could adversely impact our results and growth plans. We have approximately $1.1 billion in backlog, as of June 30, 2025, and we are in active discussions with numerous potential customers, including government agencies and private companies, to potentially add to our backlog. With Firefly’s recent award of Blue Ghost Mission 4 by NASA, our backlog grew to $1.3 billion as of July 31, 2025.

Current wording

We expect to continue to ramp up our launch cadence as we increase our production rate on Alpha rockets, and complete development of Eclipse. We successfully completed our first lunar landing on March 2, 2025, with additional Blue Ghost missions planned in 2026 and 2028. Empowered by our successful Blue Ghost mission and common technologies across spacecraft, we believe we are well positioned to unlock adjacent markets and contracts via our multi-mission orbital vehicle, Elytra. Any delays in commencing our missions, including due to delays or cost overruns in obtaining licenses or other regulatory approvals, launch delays or failures, such as the event on September 29, 2025 during the testing of our Alpha Flight 7 rocket at our facility in Briggs, Texas, which resulted in damage to the test stand, or entering into future agreements with additional customers could adversely impact our ability to generate revenue, results of operations and growth plans. We have approximately $1.3 billion in backlog, as of September 30, 2025, and we are in active discussions with numerous potential customers, including government agencies and private companies, to potentially add to our backlog.

Previous wording

Total revenue decreased by $5.5 million, or 26%, to $15.5 million during the three months ended June 30, 2025 from $21.1 million during the three months ended June 30, 2024, primarily driven by the factors discussed below.

Current wording

Total revenue increased by $8.4 million, or 38%, to $30.8 million during the three months ended September 30, 2025 from $22.4 million during the three months ended September 30, 2024, primarily driven by the factors discussed below.

Previous wording

Comparison of the Six Months Ended June 2025 to the Six Months Ended June 2024

Current wording

Comparison of the Nine Months Ended September 2025 to the Nine Months Ended September 2024

Previous wording

Total revenue increased by $42.0 million, or 143%, to $71.4 million during the six months ended June 30, 2025 from $29.4 million during the six months ended June 30, 2024, primarily driven by the factors discussed below.

Current wording

Total revenue increased by $50.4 million, or 97%, to $102.2 million during the nine months ended September 30, 2025 from $51.8 million during the nine months ended September 30, 2024, primarily driven by the factors discussed below.

Previous wording

Spacecraft Solutions revenue increased by $34.8 million, or 139%, to $59.9 million during the six months ended June 30, 2025 from $25.1 million during the six months ended June 30, 2024. The increase was primarily driven by $38.0 million of revenue related to the Blue Ghost Mission 1 in the first quarter of 2025, including revenue connected to the successful completion of the mission. There was also a $6.4 million increase in Blue Ghost program revenue due to additional progress on Blue Ghost Mission 2 and the commencement of work on Blue Ghost Mission 3, offset by a $9.6 million decrease related to the one-time Transporter-10 and KAIST missions in the first and second quarters of 2024, respectively.

Current wording

Spacecraft Solutions revenue increased by $47.0 million, or 137%, to $81.2 million during the nine months ended September 30, 2025 from $34.2 million during the nine months ended September 30, 2024. The increase was primarily driven by the successful Blue Ghost Mission 1, including a $10.0 million contract addendum for the provision of additional science and operational data. Increases from the continued growth in our Spacecraft Solutions programs across product offerings were offset by a $9.6 million decrease related to the one-time Transporter-10 and KAIST missions in the first and second quarters of 2024, respectively.

Previous wording

Cost of sales increased by $36.8 million, or 130%, to $65.2 million during the six months ended June 30, 2025 from $28.4 million during the six months ended June 30, 2024, aligning with the increase in revenue. The increase in cost of sales was driven by a $40.5 million increase related to the Blue Ghost program, including the completion of the Blue Ghost Mission 1 during the first quarter of 2025, a $3.2 million increase related to the increase in the rate of Eclipse development, and a $1.2 million increase related to engineering services for the development of launch facilities on Wallops Island, Virginia, which began during 2025. These increases were offset by a $8.2 million decrease in cost of sales related to nonrecurring costs incurred for the one-time Transporter-10 and KAIST missions in the first and second quarters of 2024, respectively.

Current wording

Cost of sales increased by $44.5 million, or 104%, to $87.5 million during the nine months ended September 30, 2025 from $43.0 million during the nine months ended September 30, 2024, aligning with the increase in revenue from the completion of our successful Blue Ghost Mission 1 during the first quarter of 2025, Eclipse program development, and engineering services fees related to the development of launch facilities, offset by nonrecurring costs incurred related to the one-time Transporter-10 and KAIST missions in the first and second quarters of 2024, respectively.

Previous wording

Selling, general, and administrative expenses increased by $3.5 million, or 16%, to $25.3 million during the six months ended June 30, 2025 from $21.9 million during the six months ended June 30, 2024. This increase was driven primarily by $3.7 million in expenses associated with our IPO, as well as additional costs due to the growth of our corporate operations and information technology infrastructure.

Current wording

Selling, general, and administrative expenses increased by $15.1 million, or 47%, to $47.2 million during the nine months ended September 30, 2025 from $32.2 million during the nine months ended September 30, 2024. This increase was driven primarily by $11.6 million one-time transaction costs and stock-based compensation expense associated with the IPO, and other nonrecurring transaction costs. The remaining increase was driven by headcount and information technology costs related to the expansion of our corporate operations.

Previous wording

Adjusted EBITDA is a non-GAAP financial measure. We define Adjusted EBITDA as net loss adjusted for interest expense, net, provision for income taxes, depreciation and amortization, stock-based compensation expense, the change in fair value of warrant liabilities, loss (gain) on disposal of fixed assets, certain one-time IPO related costs, and other expenses. In addition to net loss, we use Adjusted EBITDA to evaluate our business, measure its performance, and make strategic decisions.

Current wording

Adjusted EBITDA is a non-GAAP financial measure. We define Adjusted EBITDA as net loss adjusted for interest (income) expense, net, provision for income taxes, depreciation and amortization, stock-based compensation expense, change in fair value of warrant liability, loss on disposal of fixed assets, loss on extinguishment of debt, certain one-time costs related to the IPO, transaction-related expenses, and certain other items that are not expected to recur in the future or that management does not view as reflective of the performance of the business. In addition to net loss, we use Adjusted EBITDA to evaluate our business, measure its performance, and make strategic decisions.

Previous wording

The following table presents a reconciliation of net cash (used in) provided by operating activities, the most directly comparable financial measure presented in accordance with U.S. GAAP, to free cash flow:

Current wording

The following table presents a reconciliation of net cash used in operating activities, the most directly comparable financial measure presented in accordance with U.S. GAAP, to Free Cash Flow:

Previous wording

As of June 30, 2025, our working capital position was in a surplus, in which our current assets exceeded our current liabilities. We often make advanced payments to suppliers for services that have not yet been received that are recorded as current or non-current assets depending on whether they are expected to be settled within a year. Additionally, as of June 30, 2025, our current deferred revenue totaled $82.7 million. This is primarily due to the timing and nature of our deferred revenue where advanced payments and billings in excess of revenues recognized are recorded as deferred revenue and recognized into revenue as the Company satisfies the underlying performance obligation. Due to the nature of our supplier and customer contracts as well as the timing of payments, we expect to continue to fluctuate between a surplus and a deficit of net working capital.

Current wording

As of September 30, 2025, our working capital position was in a surplus, in which our current assets exceeded our current liabilities. We often make advanced payments to suppliers for services that have not yet been received that are recorded as current or non-current assets depending on whether they are expected to be settled within a year. Additionally, as of September 30, 2025, our current deferred revenue totaled $95.2 million. This is primarily due to the timing and nature of our deferred revenue where advanced payments and billings in excess of revenues recognized are recorded as deferred revenue and recognized into revenue as the Company satisfies the underlying performance obligation. Due to the nature of our supplier and customer contracts as well as the timing of payments, we expect to continue to fluctuate between a surplus and a deficit of net working capital.

Previous wording

As of June 30, 2025, our cash and cash equivalents amounted to $205.3 million, and our financial debt amounted to $148.4 million. We have a limited history of operations and have incurred negative cash flows from operating activities and losses from operations in the past as reflected in the accumulated deficit of $918.0 million as of June 30, 2025. We believe that our cash will be adequate to meet our liquidity requirements for at least the next 12 months. Our future long-term capital requirements will depend on several factors, including our ability to raise additional capital and, over time, our ability to generate positive cash flows from operations.

Current wording

As of September 30, 2025, our cash and cash equivalents amounted to $995.2 million, and our financial debt amounted to $30.2 million. We have a limited history of operations and have incurred negative cash flows from operating activities and losses from operations in the past as reflected in the accumulated deficit of $979.2 million as of September 30, 2025. We believe that our cash will be adequate to meet our liquidity requirements for at least the next 12 months. Our future long-term capital requirements will depend on several factors, including our ability to raise additional capital and, over time, our ability to generate positive cash flows from operations.

Previous wording

On August 8, 2025, we completed an IPO of 22.2 million shares of our common stock, including the fully exercised over-allotment option of 2.9 million shares granted to the several underwriters, at a public offering price of $45.00 per share, for an aggregate offering price of $998.6 million. We received net proceeds of $933.1 million, net of $57.4 million of underwriting discounts and commissions and $8.1 million of offering costs.

Current wording

On August 8, 2025, we completed an IPO of 22.2 million shares of our common stock, including the fully exercised over-allotment option of 2.9 million shares granted to the several underwriters, at a public offering price of $45.00 per share, for an aggregate offering price of $998.6 million. We received net proceeds of $932.5 million, net of $57.4 million of underwriting discounts and commissions and $11.2 million of offering costs.

Previous wording

Borrowings under the Revolving Credit Facility may vary significantly from time to time depending on our cash needs at any given time.

Current wording

Borrowings under the Revolving Credit Facility may vary significantly from time to time depending on our cash needs at any given time. As of September 30, 2025, no amounts were drawn under the Revolving Credit Facility.

Previous wording

We have historically sourced a significant portion of our liquidity through preferred stock issuances. We have had multiple issuances that have raised $877.3 million, net of issuance costs, since inception.

Current wording

We have historically sourced a significant portion of our liquidity through preferred stock issuances. We have had multiple issuances that have raised $925.2 million, net of issuance costs, since inception.

Previous wording

We also have 646,464 outstanding warrants exercisable for shares of Series J Preferred Stock. 0.6 million shares of common stock are reserved for issuance upon the exercise of the Series J Preferred Stock Warrants.

Current wording

We also have 0.6 million outstanding warrants exercisable for shares of Series J Preferred Stock. The Company has reserved 0.6 million shares of common stock for issuance upon the exercise of the Series J Preferred Stock Warrants.

Previous wording

Net cash used in operating activities increased by $3.8 million, or 5%, to $84.6 million for the six months ended June 30, 2025 compared to $80.8 million for the six months ended June 30, 2024, primarily due to a year over year increase in net loss of $17.6 million, partially offset by a net increase in cash related to changes in operating assets and liabilities of $4.2 million and a net increase in non-cash expenses of $9.6 million.

Current wording

Net cash used in operating activities increased by $20.3 million, or 17%, to $137.7 million for the nine months ended September 30, 2025 compared to $117.4 million for the nine months ended September 30, 2024, primarily due to a year over year increase in net loss of $110.3 million, partially offset by a net increase in cash related to changes in operating assets and liabilities of $5.2 million and a net increase in non-cash expenses of $84.8 million.

Previous wording

The net increase in cash of $4.2 million was primarily attributable to favorable timing of cash receipts and cash payments. We actively manage our accounts receivable and contract liabilities, along with the related aging and collection efforts.

Current wording

The net increase in cash related to changes in operating assets and liabilities of $5.2 million was primarily attributable to favorable timing of cash receipts and cash payments. We actively manage our accounts receivable and contract liabilities, along with the related aging and collection efforts.

Previous wording

The net increase in non-cash expenses for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily driven by a $4.9 million increase in depreciation and amortization expense due to additional construction projects being placed into service, a $5.1 million increase in non-cash expense related to the change in fair value of warrant liability, and a $0.5 million decrease in non-cash interest expense.

Current wording

The net increase in non-cash expenses for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was primarily driven by a $7.0 million increase in depreciation and amortization expense due to additional construction projects being placed into service, a $46.8 million increase in non-cash expense related to the change in fair value of warrant liability, the $30.4 million loss on extinguishment of debt upon the repayment of the Term Loans, and a $1.2 million decrease in non-cash interest expense.

Previous wording

Net cash used in investing activities decreased by $10.0 million, or 46%, to $11.8 million during the six months ended June 30, 2025 compared to $21.8 million during the six months ended June 30, 2024, reflecting a decrease in cash purchases of property and equipment of $10.0 million.

Current wording

Net cash used in investing activities decreased by $9.3 million, or 31%, to $20.8 million during the nine months ended September 30, 2025 compared to $30.0 million during the nine months ended September 30, 2024, reflecting a decrease in cash purchases of property and equipment of $9.3 million.

Previous wording

Net cash provided by financing activities increased by $136.6 million, or 312%, to $180.4 million for the six months ended June 30, 2025 compared to $43.8 million for the six months ended June 30, 2024.

Current wording

Net cash provided by financing activities increased by $925.1 million, or 1,009%, to $1.0 billion for the nine months ended September 30, 2025 compared to $91.7 million for the nine months ended September 30, 2024.

Previous wording

During the six months ended June 30, 2025, net cash provided by financing activities primarily consisted of $184.1 million of proceeds from the issuance of convertible preferred stock.

Current wording

During the nine months ended September 30, 2025, net cash provided by financing activities primarily consisted of $943.7 million of proceeds from the IPO and $235.5 million in net proceeds from the issuance of Preferred Stock. This was offset by $131.5 million primarily driven by the repayment of the Term Loans.

Previous wording

During the six months ended June 30, 2024, net cash provided by financing activities primarily consisted of $22.2 million of proceeds from the issuance of convertible preferred stock. Additionally, $24.6 million was raised from the issuance of notes payable.

Current wording

During the nine months ended September 30, 2024, net cash provided by financing activities primarily consisted of $22.2 million of proceeds from the issuance of convertible preferred stock. Additionally, $49.0 million was raised from the issuance of notes payable.

Previous wording

We lease buildings, launch sites, office facilities, machineries, and computer equipment. These leases are classified as operating or financing leases with various expiration dates through 2042. Our total remaining lease obligations as of June 30, 2025 are $19.1 million, with $1.4 million due in less than one year. See Note 8 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for more information regarding our lease commitments.

Current wording

We lease buildings, launch sites, office facilities, machineries, and computer equipment. These leases are classified as operating or financing leases with various expiration dates through 2042. Our total remaining lease obligations as of September 30, 2025 are $14.3 million, with $1.4 million due in less than one year. See Note 8 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for more information regarding our lease commitments.

Previous wording

The Company’s common and preferred stock warrants are liability classified on the unaudited condensed consolidated balance sheets and, therefore, are recorded to fair value at each reporting period. The Level 3 significant unobservable inputs used in the fair value measurement of the Company’s common and preferred stock warrant liabilities are volatility, term, discount for lack of marketability and probability weighting based on different scenarios including change of control, initial public offering, and default. The fair value of the warrants may fluctuate primarily based on the implied volatility which varies based on future market and industry conditions.

Current wording

The Company’s warrants are liability classified on the unaudited condensed consolidated balance sheets and, therefore, are recorded to fair value at each reporting period. Prior to the Company's IPO, the Level 3 significant unobservable inputs used in the fair value measurement of the Company’s warrant liability were volatility, term, discount for lack of marketability and probability weighting based on different scenarios including change of control, IPO, and default. Following the IPO, the Company determines the fair value of the warrant liability based on the intrinsic value method, calculated as the difference between the trading price of the Company's common stock and the exercise price of the warrants. The fair value of the warrant liability may fluctuate based on the trading price of its common stock which varies based on future market and industry conditions.

Previous wording

On August 8, 2025, in connection with our IPO, all outstanding common stock warrants were automatically exercised into 1.0 million shares of common stock. In addition, 0.6 million shares of common stock are reserved for issuance upon exercise of outstanding Series J Preferred Stock warrants.

Current wording

On August 8, 2025, in connection with our IPO, all outstanding Common Warrants were automatically exercised into 1.0 million shares of common stock. In addition, 0.6 million shares of common stock are reserved for issuance upon exercise of outstanding Series J Warrants.