Rocket Lab Corporation

What they do

Rocket Lab operates Electron, a fully carbon composite small launch vehicle powered by 3D-printed electric turbopump Rutherford engines, and is developing the medium-lift, reusable Neutron vehicle. It launches from Launch Complex 1 in Mahia, New Zealand and Launch Complex 2 at NASA's Wallops Flight Facility in Virginia, with Launch Complex 3 under construction there for Neutron. Beyond launch, it designs and manufactures spacecraft, spacecraft components, optical systems and on-orbit management solutions, largely built through acquisitions including Sinclair Interplanetary, SolAero, GEOST, Mynaric and Motiv.

Revenue drivers

• Launch Services — Design, manufacture and launch of orbital rockets, principally Electron, which had delivered over 250 spacecraft across 87 successful missions through June 30, 2026, plus HASTE suborbital and, in future, Neutron.
• Space Systems — Spacecraft design and manufacturing, spacecraft components (reaction wheels, star trackers, radios, separation systems, solar solutions, batteries), optical systems, laser optical communications, space robotics and mission operations; expanded through acquisitions including Sinclair Interplanetary, Planetary Systems, SolAero, Advanced Solutions, GEOST, Mynaric and Motiv.
• Government and defense programs — Contracts for U.S. government customers including the Department of War, NASA, DARPA and NRO, with recent awards such as a $397 million contract for Flatellite spacecraft on Neutron for the Space Force SB-AMTI program.
• Constellation and satellite production — Awards exceeding $160 million across two contracts to build three geostationary satellites, including a Space Systems Command prime contract for two space domain awareness satellites.

Recent performance

Second quarter 2026 revenue was a record $234 million, up 62% year-over-year and $34 million above the prior quarter, per the August 10, 2026 earnings release. Backlog reached a record $2.36 billion, a 137% year-over-year increase. Full-year 2025 revenue was $601.8 million with a net loss of $198.2 million and operating cash flow of negative $165.5 million. At June 30, 2026, total assets were $4.19 billion, cash and equivalents were $2.13 billion, total liabilities were $695.2 million and long-term debt was $1.7 million.

Strategy

Management is pursuing an end-to-end space model spanning launch, spacecraft manufacturing, on-orbit management and space data applications. The company is investing in Neutron, a reusable medium-lift vehicle targeting approximately 13,000 kg to low Earth orbit, with first-flight hardware in assembly and integration and pad delivery targeted for Q4 2026. It continues acquiring vertically integrated capabilities, having closed Mynaric and Motiv and announced an agreement to acquire Iridium Communications. It also introduced the GHOST globally-deployable launch system, with its first location, Launch Complex 4, planned at the Pacific Spaceport Complex in Kodiak, Alaska. Expansion includes establishing Rocket Lab Germany GmbH to serve European commercial and sovereign space customers.

Risks

• Persistent losses and cash burn — Net loss has widened every year from $117.3 million in 2021 to $198.2 million in 2025, and operating cash flow swung to negative $165.5 million in 2025 from negative $48.9 million in 2024.
• Neutron development execution — Neutron, the medium-lift vehicle central to the growth plan, is still in development with first-flight hardware in assembly and Stage 1 tank production tied to a Q4 2026 target pad delivery.
• Growth management strain — Headcount grew from approximately 1,400 employees at December 2022 to over 2,600 at December 31, 2025, and the 10-K states expansion has placed significant strain on management, operational and financial resources.
• Acquisition integration — Rocket Lab has grown through acquisitions such as Mynaric, Motiv and the announced Iridium deal, each adding integration and execution risk across multiple business areas.

Outlook

For the third quarter of 2026, management guides to revenue of $250 million to $265 million, GAAP gross margins of 29% to 31% and non-GAAP gross margins of 35% to 37%. It expects GAAP operating expenses of $143 million to $149 million, non-GAAP operating expenses of $121 million to $127 million, net interest income of $21 million, and an adjusted EBITDA loss of $17 million to $23 million. Guidance assumes basic weighted average shares of 641 million, including approximately 41 million Series A Convertible Participating Preferred Shares.