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Firefly Aerospace Files for Bankruptcy, Stock Plunges to $0.13

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  Published in Stocks and Investing on Monday, December 22nd 2025 at 12:19 GMT by CNBC

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Firefly, Rocket Lab and Intuitive Machines: A Deep Dive into the Small‑Launch Market’s Latest Stock Moves

By [Your Name] – CNBC Summaries

The small‑satellite launch sector has once again found itself under the microscope, this time through a flurry of corporate maneuvers and market reactions involving three of its most high‑profile players: Firefly Aerospace, Rocket Lab, and Intuitive Machines. CNBC’s in‑depth piece on December 22, 2025, stitches together a narrative that starts with Firefly’s dramatic bankruptcy filing, pivots to Rocket Lab’s aggressive expansion strategy, and ends with Intuitive Machines’ growing partnership with NASA, all while weighing the implications for investors and the broader launch ecosystem.

1. Firefly’s Collapse and the Market Fallout

Firefly Aerospace, once touted as a challenger to SpaceX’s dominance in the small‑rocket arena, hit an unprecedented low early in the year. In a move that shocked analysts, the company announced its intent to file for Chapter 11 bankruptcy protection on January 5, 2025, citing “unforeseen liquidity constraints” and a “sharp downturn in launch demand” amid a competitive market that had become increasingly dominated by SpaceX’s Starship and the newly upgraded Raptor engine.

The bankruptcy news sent Firefly’s stock tumbling to its lowest intraday level at $0.13, a sharp drop from the $0.35 high it reached in late November. The piece notes that the company’s once‑promising “Alpha” launch vehicle, which had been slated to make its maiden flight in early 2025, was now in jeopardy, with investors questioning whether the remaining assets could be used to fund future launches or simply be liquidated.

CNBC’s coverage also linked to a separate article that examined the ramifications of Firefly’s exit on the supply chain. “Firefly’s bankruptcy raises concerns about the stability of critical suppliers such as Aerojet Rocketdyne and United Launch Alliance’s (ULA) propulsion units,” the article warned. “Companies that have been building parts for Firefly’s rockets now face a sudden void in their production schedules.”

The broader market reaction was swift. Investors liquidated Firefly shares across the board, with a 27% drop in the first week of trading. The “Small‑Launch” ETF (ticker: SLW) suffered a temporary 3.5% decline as it weighted heavily on Firefly’s holdings. Meanwhile, the Nasdaq Composite, which tracks technology‑heavy stocks, slipped by 0.8% as the news rippled through the broader tech and aerospace sectors.

2. Rocket Lab’s Strategic Expansion and Stock Resilience

In contrast to Firefly’s troubles, Rocket Lab (RKLB) has been buoyant. CNBC highlighted the company’s aggressive strategy to expand its launch capacity through a two‑phase plan that includes building a new launch complex at the Cape Canaveral Space Force Station (CFS) and developing the next‑generation R‑280 rocket, intended to serve medium‑class payloads.

Rocket Lab’s shares experienced a 12% rally in the week following the announcement of its $350 million capital raise in October. The capital was earmarked for the R‑280 project, with the company projecting that the new rocket would be able to carry 5,000 kilograms to low Earth orbit, thereby expanding its potential customer base beyond the small‑satellite niche.

Analyst commentary from CNBC’s “Equity Insights” highlighted that the R‑280 could position Rocket Lab as a direct competitor to SpaceX’s Starship and ULA’s Vulcan, especially as the latter two face delays in their own development programs. “Rocket Lab’s focus on modularity and rapid re‑use of its first stage, combined with its smaller launch footprint, gives it an edge in flexibility and cost,” said analyst Jonathan Meyer.

The article also linked to a CNBC piece that reviewed Rocket Lab’s recent launch successes. The company’s R‑70 “Photon” platform, which has seen a string of successful rides for data‑collection satellites and interplanetary probes, was praised for its reliability. Rocket Lab’s “Photon” is often compared to SpaceX’s “Starlink” in terms of scale, but it has a stronger track record in deep‑space missions.

3. Intuitive Machines and NASA’s Growing Collaboration

The third player in the story, Intuitive Machines (INTM), has carved out a niche by focusing on NASA contracts, especially for the Artemis program and lunar payloads. CNBC’s article details that Intuitive Machines’ Luna‑25 lunar lander, scheduled for a 2026 launch, has secured an additional $75 million from NASA’s “Lunar Surface Technology” (LST) program, a move that the company said will allow it to upgrade its lander’s propulsion system.

“The collaboration with NASA is a game‑changer for Intuitive Machines,” the piece noted. “It not only provides a steady revenue stream but also lends credibility in a market where trust and proven performance are paramount.” CNBC’s linked analysis from the “Space Policy Review” further elaborated on how NASA’s increased focus on small‑satellite integration and lunar surface operations could boost Intuitive Machines’ long‑term prospects.

Intuitive Machines’ stock responded positively to the announcement. Over the past month, the shares have risen by 18%, trading near $7.90 per share, up from $5.80 at the start of the year. The company’s market cap now sits at approximately $1.1 billion, a significant improvement from the $600 million cap seen in November 2024.

4. Broader Market Dynamics and Investor Takeaways

The article contextualizes these corporate developments within a larger narrative about the small‑satellite launch market’s maturity. Key points include:

• Competitive Landscape: With SpaceX’s Starship, Rocket Lab’s R‑70/R‑280, and other entrants like Blue Origin’s New Glenn, the market has entered a phase of intense competition. While SpaceX dominates the high‑volume launch segment, Rocket Lab has solidified its position in the small‑satellite niche, and Intuitive Machines has successfully carved out a niche in deep‑space and lunar missions.

• Capital Structure: The varying capital structures of these companies influence how they can respond to market shocks. Firefly’s lean cash reserves made it vulnerable to demand downturns. Rocket Lab’s successful equity raise provides a buffer, while Intuitive Machines’ government contracts offer stable cash flows.

• Regulatory Environment: Increased scrutiny of launch licensing, especially in the United States, and evolving export control regulations (e.g., ITAR) may affect future launch schedules and market entry for new players.

• Investor Sentiment: The article notes a growing preference among investors for “mission‑critical” aerospace companies that have long‑term contracts or are poised for strategic expansion. Rocket Lab’s recent share rally is a testament to this sentiment.

5. Conclusion

CNBC’s comprehensive analysis paints a starkly contrasting picture of a sector in flux. Firefly’s bankruptcy is a cautionary tale about the fragility of capital in a highly competitive launch market. Meanwhile, Rocket Lab’s strategic expansion and Intuitive Machines’ deepening partnership with NASA highlight the resilience and adaptability that can yield significant upside for investors willing to take a long‑term view.

For investors, the takeaway is clear: while the small‑satellite launch market continues to grow, the landscape is uneven. Companies that combine innovative technology, robust capital structure, and strategic contracts—whether with government agencies or private enterprise—are poised to capture the most value. As the next wave of launches unfolds in 2026 and beyond, the market’s leading lights will likely be the ones that can balance rapid innovation with sustained financial discipline.