Firefly Aerospace Stock Plummets After Alpha Test Failure

Shares of Firefly Aerospace fell about 35% in September after an Alpha rocket exploded on the launchpad during a late-September test.

The recently public company raised roughly $1 billion in its IPO this summer to fund rocket and spacecraft development. It reports a backlog near $1.3 billion but generated only about $15 million in revenue last quarter, underscoring large contracted work yet minimal current sales.

Alpha has flown only six times to date, leaving Firefly with a thin operational track record; pad failures increase replacement costs and can quickly erode customer confidence. Industry peers have executed many more missions with fewer mishaps, emphasizing execution as the immediate challenge.

Investors are now balancing growth potential against execution risk. Firefly’s market capitalization is roughly $4 billion versus about $100 million in trailing revenue, implying a price-to-sales ratio near 40 and reflecting expensive forward assumptions for an unprofitable developer.

Analysts say the cash raised provides runway, but repeated failures or delays could pressure finances and contract retention. For now, Firefly is likely best suited to investors comfortable with early-stage aerospace risk and operational uncertainty.