Aerospace Firm Gains Visibility
Starfighters Space Enters Russell 3000 Index, Boosting Visibility for Specialized Aerospace Platform
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Starfighters Space, Inc. (NYSE American: FJET) will join the Russell 3000 Index on June 29, 2026, as part of the annual Russell reconstitution, MarketScreener reported. The small-cap aerospace company operates seven flight-ready F-104 supersonic jets at NASA's Kennedy Space Center — making it one of the most unusual stocks to earn a spot in the widely tracked index.
The inclusion gives FJET exposure to an estimated $12.2 trillion in index-linked funds, according to FTSE Russell. But the company reported zero revenue in Q1 2026 and a net loss of $4.27 million — raising sharp questions about whether index visibility alone can sustain it.
Seven Cold War Jets at the Heart of a Space Bet
Starfighters Space is built around a fleet of Lockheed F-104 Starfighters — jets originally used to train NASA's Mercury and Apollo astronauts. The company holds a Permanent Space Act Agreement at Kennedy Space Center, giving it access to the 15,000-foot Shuttle Landing Facility. No other commercial operator owns a working fleet of these aircraft, which the company calls a "hardware monopoly."
The strategic pitch is simple: the F-104 can simulate the first 30 seconds of a vertical rocket launch in a recoverable, repeatable way. That fills a real gap. The U.S. Department of Defense faces a bottleneck in hypersonic testing infrastructure. Wind tunnels are limited. Starfighters says its jets offer a cheaper, reusable alternative. A White House executive order signed December 18, 2025, called "Ensuring American Space Superiority," further pushes commercial platforms into defense testing roles, according to Financial Content.
A Turbulent Six Months Since the December IPO
Starfighters went public on December 18, 2025. Within two months, founder Rick Svetkoff and Secretary Brenda Svetkoff resigned, citing "disagreements with the Board over operations, policies, and practices." The board named Tim Franta, former VP of Development, as the new CEO. FJET stock surged 77% in the week that followed, pushing the market cap to roughly $397 million, MarketScreener reported.
Svetkoff then filed a $26 million lawsuit in Brevard County, Florida, on April 9, 2026, alleging breach of fiduciary duty and "deceptive and unfair trade practices." The board has countered with its own investigation into what it says were $1.9 million in unauthorized transfers by Svetkoff. Shareholder rights firm Johnson Fistel, PLLP, is also probing the leadership transition for possible federal securities law violations. The lawsuit remains a material risk against the company's $17.5 million cash runway.
$17.5 Million Raised to Build STARLAUNCH — With No Revenue Yet
On May 22, 2026, the same day FTSE Russell published its preliminary Russell 3000 additions list, Starfighters closed a $17.5 million strategic equity raise at $3.35 per share. The money is earmarked for STARLAUNCH 1, an air-launch system the company is developing with GE Aerospace. Wind tunnel tests in January 2026 validated clean separation at Mach 1.3. A demonstration flight is targeted within 18 to 24 months, according to Clinton News Record.
The company also hired two senior leaders from Blue Origin — Jose Arias and Catrina Medeiros — to lead space operations, and announced a partnership with Blackstar Orbital to test reusable hypersonic "SpaceDrone" systems. CEO Tim Franta said the index inclusion "reflects growing awareness of our differentiated commercial space platform." But research firm HDIN Research is less bullish, calling FJET a "zombie" financial profile with a 2,431% net loss and a market that "may take years to mature."
Bulls See a Moat; Bears See a Money Pit
Starfighters carries a market cap of roughly $419.6 million as of early June 2026, despite total assets of just $26.34 million. The bull case rests on scarcity: the government cannot easily replace a working fleet of F-104s, and the C-STARS Consortium — backed by the National Science Foundation — views Starfighters as a vital domestic asset for recoverable hypersonic testing, according to The Whig.
The bear case is harder to ignore. The company is burning cash to modernize 60-year-old jets with no signed commercial contracts yet. Investment analyst Hilary Kramer appeared on Fox Business on June 1, 2026, framing FJET as a "pick and shovel" space play — meaning it supplies the tools others need, rather than competing directly in launches. That framing may attract patient investors. Whether index inclusion buys enough time for revenue to materialize is the central question heading into the second half of 2026.
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