A mannequin of the Firefly Aerospace Blue Ghost lander in the course of the firm’s preliminary public providing on the Nasdaq MarketSite in New York, US, on Thursday, Aug. 7, 2025.
Michael Nagle | Bloomberg | Getty Images
Firefly Aerospace shares sank greater than 24% after its rocket exploded throughout a test flight on Monday.
The explosion occurred throughout a first-stage test flight of satellite-launching Alpha Flight 7 rocket at its facility in Briggs, Texas, Firefly wrote in an update.
“Proper safety protocols were followed, and all personnel are safe,” Firefly wrote. “The company is assessing the impact to its stage test stand, and no other facilities were impacted.”
The eight-year-old space technology firm competes in an more and more crowded house dominated by billionaire-backed ventures corresponding to Elon Musk‘s SpaceX for offers with NASA and distinguished authorities contractors.
Appetite is powerful. Over the years, Firefly has partnered with NASA, Lockheed Martin and L3Harris Technologies. It not too long ago received a $177 million contract with NASA and a $50 million funding from Northrop Grumman.
At the time of its preliminary public providing final month, Firefly was the third important house know-how to debut in 2025 after Voyager Technologies and Karman Holdings.
High investor curiosity led to an upsized offering, with an preliminary share sale elevating $868 million at a $6.3 billion valuation. Shares surged 34% on opening day to shut at greater than $60. The stock has since pulled again 50%.
“It’s all about execution,” CEO Jason Kim instructed CNBC’s “Squawk Box” on IPO day.
He stated the corporate is laser-focused on its Alpha rockets to satisfy heightened industrial and nationwide safety calls for.
Firefly makes rockets, house tugs and lunar landers. Earlier this 12 months, its Blue Ghost lunar lander efficiently landed on the moon.
Rocket exams within the sector, traditionally, have not all the time been a easy journey. Firefly’s sixth Alpha rocket failed in April. Last month, the Federal Aviation Administration cleared Firefly to proceed testing its Alpha rockets. SpaceX has additionally suffered mishaps, together with a launch pad explosion this summer time.
“We learn from each test to improve our designs and build a more reliable system,” Firefly wrote in its mission replace.
Firefly 1 month stock chart.