A model of the Firefly Aerospace Blue Ghost lander during the company’s initial public offering at the Nasdaq MarketSite in New York, US, on Thursday, Aug. 7, 2025.
Michael Nagle | Bloomberg | Getty Images
Firefly Aerospace shares sank more than 24% after its rocket exploded during a test flight on Monday.
The explosion occurred during 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 company competes in an increasingly crowded space dominated by billionaire-backed ventures such as Elon Musk’s SpaceX for deals with NASA and prominent government contractors.
Appetite is strong. Over the years, Firefly has partnered with NASA, Lockheed Martin and L3Harris Technologies. It recently won a $177 million contract with NASA and a $50 million investment from Northrop Grumman.
At the time of its initial public offering last month, Firefly was the third significant space technology to debut in 2025 after Voyager Technologies and Karman Holdings.
High investor interest led to an upsized offering, with an initial share sale raising $868 million at a $6.3 billion valuation. Shares surged 34% on opening day to close at more than $60. The stock has since pulled back 50%.
“It’s all about execution,” CEO Jason Kim told CNBC’s “Squawk Box” on IPO day.
He said the company is laser-focused on its Alpha rockets to meet heightened commercial and national security demands.
Firefly makes rockets, space tugs and lunar landers. Earlier this year, its Blue Ghost lunar lander successfully landed on the moon.
Rocket tests in the sector, historically, haven’t always been a smooth ride. Firefly’s sixth rocket failed in April. SpaceX has also suffered mishaps, including a launch pad explosion this summer.
“We learn from each test to improve our designs and build a more reliable system,” Firefly wrote in its mission update.
Firefly 1 month stock chart.
