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Rocket Lab

RKLB · NASDAQ

Aerospace & Defense · Launch and Space Systems

Q2 2026 Earnings · Monday, August 10Next Earnings: Q3 2026 · ~November 2026
Last Close
$64.25+ 0.69%

Since the Report − 19.7%

Close on Report DayAug 10

$80.04▼ 6.8%Report-Day Move

Market Cap(Today)
≈ $38.4 B
1Y Return(At Report)
+ 79%
Net Margin(Trailing 12M)
21.5%
77/ 100
VerdictBUY

Rocket Lab grew revenue 62% year-over-year to a record $234.1 million in the second quarter and lifted its backlog 137% to $2.36 billion, while its plan to acquire Iridium turns the company into a vertically integrated space power. But an EPS loss driven by acquisition costs came in below expectations, and $110 million of free-cash-flow burn plus soft gross-margin guidance for the next quarter pushed the stock down roughly 7% after hours. From here, the focus shifts to Neutron reaching the launch pad in the fourth quarter and the timeline for turning profitable.

Avg. Analyst Target (22)$110.00▲ 37% Upside

  • Revenue (Q2)

    $234.1M

    ▲ 62% YoY

  • Gross Profit (GAAP)

    $84.6M

    ▲ 82% YoY

  • GAAP EPS

    −$0.08

    ~5% Below Estimate

  • Backlog

    $2.36B

    ▲ 137% YoY

  • Cash & Equivalents

    $2.13B

    Strong Liquidity

  • Stock Reaction

    ▼ ~7%

    After Hours

Quarterly Revenue ($ Million)

ReportedCompany Guidance

  • 145

  • 155

  • 180

  • 200

  • 234

  • 250–265

  • Q2 25
  • Q3 25
  • Q4 25
  • Q1 26
  • Q2 26
  • Q3 26E
Annual Revenue Growth
▲ 62%
Product Revenue Share
77%$181.3M · ▲ 96%
Service Revenue Share
23%$52.7M · Slow Growth

Q3 2026 Company Guidance

Guidance Range
  • Revenue250 – 265 million

    Midpoint $257.5MRecord Guidance ▲

  • Gross Margin (GAAP)29% – 31%

    Q2 Actual 36.1%Sequential Decline ▼

  • Operating Expenses (GAAP)143 – 149 million

    Neutron-WeightedInvestment Continues

The blue band is the company's low–high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. Axis is ±3.8% around the midpoint.

Cash Position
$2.13BBolstered by ATM Raise
Free Cash Flow (Q2)
▼ $110.1MCash Burn Continues
Share Count
~598MDiluted Via ATM
From the CEOPeter BeckFounder & CEO
“Q2 was another fantastic quarter for Rocket Lab, highlighted by record results and massive momentum that has continued well after the close.”
  • Record Quarterly Revenue
  • Strong Post-Close Momentum
  • Vertical Integration With Iridium

Summary

Rocket Lab reported $234.1 million in revenue for the second quarter of 2026, a 62% jump year-over-year and yet another quarterly record. The main growth engine was product revenue, which nearly doubled — up roughly 96% year-over-year — to $181.3 million, covering launch and space-systems hardware. GAAP gross profit rose to $84.6 million from $46.4 million a year earlier, lifting gross margin to 36.1%. Backlog reached a record $2.36 billion, up 137% year-over-year, with more than 90 missions queued on the launch side alone. The company closed the quarter with a strong cash position of $2.13 billion.

Despite the record revenue and a top-line beat, the stock fell about 7% in after-hours trading to around $74.5. Investor focus shifted from growth to profitability: the GAAP loss of $0.08 per share landed slightly below market expectations because of $8.6 million in transaction costs tied to the Mynaric and Motiv acquisitions and the pending Iridium deal. Free cash flow was negative $110.1 million in the quarter, and the company guided to a lower GAAP gross margin of 29–31% for the third quarter. That combination brought the question of when the company moves from growth-at-all-costs to sustainable profitability to the forefront. The stock's meaningful pullback from its recent peak over the past three months sharpened the reaction.

Our overall read is that the quarter was operationally strong but cautious on the profitability front. The revenue momentum, an exploding backlog, and the vertical integration the Iridium acquisition would bring all feed Rocket Lab's long-term story, and the Neutron rocket — targeted to reach the launch pad in the fourth quarter — is a major catalyst. On the other hand, deep cash burn, dilutive share issuance, and near-term margin pressure demand patience. We therefore score the quarter as 'good but with a caveat'; the story is intact, but the path to profitability is not yet clear. The key things investors should watch from here are Neutron's first-flight timeline and whether margins bottom and recover.

Full Review

Claude

Product revenue is the growth engine.

The strongest part of the quarter was product revenue, which nearly doubled — up about 96% year-over-year — to $181.3 million. This line covers both launch services and the fast-growing space-systems business (satellite platforms, components, and subsystems). Service revenue held at $52.7 million, making up roughly a quarter of the total, so growth came overwhelmingly from products. Total revenue of $234.1 million edged past the ~$232 million the market expected and landed near the high end of the company's own guidance. Scaling the space-systems business is transforming Rocket Lab from a small-launch provider into an end-to-end space company. That shift matters because it diversifies the revenue base and increases recurring business.

Backlog hit a record.

The company's backlog surged 137% year-over-year to a record $2.36 billion, giving strong visibility into future revenue, with more than 90 missions queued on the launch side. New launch contracts signed during and after the quarter reached $437 million, and the company noted more than $1 billion in additional orders booked early in the third quarter. This order momentum reflects both sustained demand for the Electron small launch vehicle and growth on the space-systems side. How quickly the backlog converts into revenue will be the key gauge of how sustainable growth is over the coming quarters. The record backlog is an important counterweight to near-term profitability concerns.

Profitability and cash burn are the main caveat.

Despite the record revenue, the weak spot was the bottom line. The GAAP loss of $0.08 per share came in slightly below expectations due to $8.6 million in transaction costs tied to the Mynaric and Motiv acquisitions and the pending Iridium deal. More critically, free cash flow was negative $110.1 million in the quarter; the company is in a heavy investment phase and is allocating capital largely to the Neutron program. It guided third-quarter GAAP gross margin to 29–31%, below the 36.1% posted in the second quarter. Because the cash need was met largely through ATM share issuance ($1.53 billion), existing shareholders are being diluted. As a result, the market repriced the timeline for the shift from growth to profitability.

Neutron and Iridium will define the future.

Rocket Lab's medium-lift Neutron rocket remains the biggest catalyst in the story. The company said it has completed more than 400 engine hotfire tests and is targeting delivery of the first-stage tank to the launch pad in the fourth quarter. Neutron offers a payload capacity that could compete with SpaceX's Falcon 9, opening the company to a far larger market. Alongside it, the decision to acquire Iridium Communications is a strategic inflection point: the combined entity aims to create a self-launching, vertically integrated tier-1 space power delivering voice, data, and positioning services under one roof. Both developments expand the long-term potential; however, possible delays in Neutron's first flight and integration of the acquisition are risks to watch in the near term.

Strengths

5
  1. Another record quarterly revenue at $234.1 million, up 62% year-over-year
  2. Backlog up 137% to $2.36 billion, with more than 90 launch missions queued
  3. Strong $2.13 billion cash position funds the Neutron investment
  4. The Iridium acquisition turns the company into a vertically integrated, self-launching space power
  5. Product revenue nearly doubled, up roughly 96% year-over-year

Risks

5
  1. Free cash flow was negative $110.1 million in the quarter; cash burn continues
  2. Q3 GAAP gross-margin guidance of 29–31% is below the 36.1% posted in Q2
  3. ATM share issuance dilutes existing shareholders (share count ~598 million)
  4. EPS came in below expectations on acquisition costs; the path to profitability is unclear
  5. Neutron's first launch has yet to happen; a possible delay could strain the story

What to Watch

4
  1. Neutron first-stage tank targeted for delivery to the launch pad in Q4
  2. Q3 earnings expected around November 2026
  3. Closing of the Iridium acquisition and integration steps
  4. Neutron first-flight preparations after 400+ hotfire tests

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To Understand This

Earnings Reports: What to Read, HowThe book opens once a quarter — and the market really only reads three lines.P/E and the Valuation RatiosYou can't tell whether a stock is cheap or expensive by looking at its price.