Rocket Lab Corporation
RKLB · Nasdaq
Next quarter
Expected to report Nov 9, 2026 — estimated from last year’s reporting date.
Consensus is -$0.05 EPS for Sep 2026 across 2 estimates, ranging -$0.06 to -$0.05.
RKLB Jun 2026
- 14.29%
- -0.04%
- -$0.07
- -$0.06
- —
- $234.07M
Reported results
- $234.07M
- 36.13%
- -$57.51M
- -24.57%
- -$49.26M
- -$0.08
Highlights
- Record revenue: Q2 revenue was $234.1 million, up 62% year over year and 17% from Q1's $200.3 million, driven primarily by Space Systems.
- EPS beat: Reported EPS was -$0.06 versus consensus of -$0.07, a 14.29% surprise; GAAP diluted EPS in the filing was -$0.08 versus -$0.13 a year earlier and -$0.07 in Q1.
- Space Systems led growth: Space Systems revenue rose 94% year over year to $189.5 million, while Launch Services revenue declined 4% to $44.6 million because of launch revenue-recognition timing.
- Backlog reached a record: Backlog increased 137% year over year to $2.36 billion, with approximately 45% expected to convert to revenue within 12 months.
- Contract momentum accelerated: Rocket Lab secured more than $437 million of launch contracts during Q2 and afterward, while post-quarter awards included $397 million for Space Force Flatellite spacecraft and $266 million of potential value for 12 missile-defense launches.
- Neutron remained on schedule, but timing risk increased: Stage 1 tank production was aligned with delivery to the launch pad in Q4 2026, although management said the window for an end-of-year first launch is narrowing.
- Iridium transformed the strategic and financing profile: The proposed $54-per-share acquisition carries approximately $8.0 billion of enterprise value, requires more than $3.0 billion of cash plus up to $1.8 billion to refinance Iridium debt, and is backed by a $3.6 billion bridge commitment.
- Margins improved despite continued investment: GAAP gross margin was 36.1%, versus 32.1% a year earlier, while adjusted EBITDA loss improved to $8.8 million from $27.6 million.
- Q3 guidance called for another record: Revenue is expected at $250 million-$265 million, with GAAP gross margin of 29%-31% and adjusted EBITDA loss of $17 million-$23 million.
Analysis
Rocket Lab's Q2 was a record-growth quarter, with revenue of $234.1 million up 62% year over year and 17% sequentially from $200.3 million. The company reported EPS of -$0.06 versus consensus of -$0.07, while the filing showed a GAAP diluted loss of $0.08 per share. Net loss narrowed to $49.3 million from $66.4 million a year ago but widened from Q1's $45.0 million; operating loss was $57.5 million, broadly similar to Q1's $56.0 million and better than $59.6 million a year earlier.
The defining feature was the shift toward Space Systems: revenue reached $189.5 million, up 94% year over year, and accounted for most of the $89.6 million quarterly increase. Launch Services revenue fell 4% because two HASTE missions were recognized over time, though six Electron launches were completed. Backlog rose to $2.36 billion, supported by more than $437 million of launch awards and subsequent large Space Force contracts. Rocket Lab also announced the proposed Iridium acquisition, a transaction that would materially broaden its communications ambitions but require substantial new financing. Q3 guidance points to revenue of $250 million-$265 million, another sequential record, while adjusted EBITDA loss is expected to widen to $17 million-$23 million as investment continues.
Revenue and margins
Growth broadened the revenue base, but profitability remained dependent on continued scale and execution. Space Systems generated $189.5 million of revenue and $65.5 million of gross profit, compared with $97.9 million and $32.2 million a year earlier. Launch Services generated $44.6 million and $19.1 million of gross profit, versus $46.6 million and $14.2 million a year earlier.
- GAAP gross profit increased 82% to $84.6 million, lifting gross margin to 36.1% from 32.1%. Non-GAAP gross margin was 41.5%, up from 36.9%.
- Operating expenses rose 34% to $142.1 million, including R&D of $82.4 million and SG&A of $59.7 million. R&D investment reflected Neutron development and product expansion, while SG&A included acquisition and transaction costs.
- Adjusted EBITDA loss improved to $8.8 million from $27.6 million in the year-ago quarter. GAAP operating loss was $57.5 million, and net loss was $49.3 million.
- Interest income rose to $16.5 million from $5.0 million as cash balances increased, helping reduce the pretax loss to $43.9 million from $63.5 million.
Backlog and contracts
Bookings were a central part of the quarter's message. Backlog reached $2.356 billion at June 30, up from $1.847 billion at December 31, with $1.416 billion in Space Systems and $940.2 million in Launch Services. Approximately 45% of backlog is expected to be recognized within 12 months.
- Rocket Lab secured more than $437 million of launch contracts across Electron, HASTE and Neutron during Q2 and the period afterward, taking the launch backlog above 90 launches.
- The company won a potential $397 million Space Force contract to design, manufacture, launch and operate Flatellite spacecraft for the SB-AMTI program.
- Two contracts worth more than $160 million cover three geostationary satellites, including Rocket Lab's first U.S. government geostationary satellite production and operations work.
- A July agreement covers 12 Space Force missile-defense suborbital launches, with options for six more and total potential value of $266 million.
Iridium acquisition
The proposed Iridium transaction was the quarter's largest strategic development and changes the scale of Rocket Lab's financial commitments. The agreement values Iridium at approximately $54 per share and about $8.0 billion of enterprise value, with closing expected in 2027 subject to shareholder and regulatory approvals.
- Rocket Lab expects the transaction to require more than $3.0 billion of cash for share consideration, debt repayment, fees and expenses, plus approximately $1.8 billion to repay or refinance Iridium term debt if necessary.
- The companies have secured commitments for a $3.6 billion, 364-day senior secured bridge facility. Rocket Lab expects to pursue permanent debt or equity financing to replace some or all of that bridge financing.
- Management frames the combination as a vertically integrated platform spanning spacecraft design, manufacturing, launch and satellite communications. The filing also highlights integration, regulatory, leverage and financing risks.
Neutron development
Neutron progress continued to absorb significant R&D spending and remains an important execution milestone. Rocket Lab said first-flight hardware assembly, integration and testing were advancing, including work on the Archimedes engines, second stage and reusable fairing systems.
- Stage 1 tank production remained aligned with delivery of Neutron to the launch pad in Q4 2026.
- Management cautioned that the window for an end-of-year launch is narrowing and that first-flight timing depends on qualification and other critical tests later in 2026.
- R&D expense rose 25% year over year in Q2 to $82.4 million, partly because of Neutron development. The company completed 12 Electron launches in the first half, versus 10 in the year-ago period.
Liquidity and outlook
Rocket Lab ended June with substantial liquidity, largely created through equity issuance, but cash generation remained negative and the Iridium plan would materially increase financing needs.
- Cash and cash equivalents were $2.129 billion, with another $258.1 million of marketable securities, for total cash and securities of $2.388 billion.
- Operating cash use was $134.4 million in the first half, versus $77.5 million a year earlier. Capital expenditures were $53.1 million and cash paid for acquisitions was $44.3 million.
- ATM offerings generated $1.530 billion of net financing cash in the first half, while weighted-average diluted shares rose to 629.7 million from 515.1 million a year earlier.
- Q3 revenue guidance is $250 million-$265 million, GAAP gross margin is 29%-31%, non-GAAP gross margin is 35%-37%, and adjusted EBITDA loss is $17 million-$23 million. Stock-based compensation is expected at $18 million-$20 million.
