Key Takeaways:
Rocket Lab posted $234 million in Q2 revenue, up 62 percent, beating consensus as shares slid 33 percent in three months.
"It has been another exceptional quarter for Rocket Lab," Peter Beck, founder and chief executive officer, said on the earnings call. "We achieved a record $234 million in Q2 revenue, up almost $90 million or 62 percent versus the same quarter last year."
Space Systems revenue of $189.5 million rose 38.6 percent sequentially, driven by satellite manufacturing and the Mynaric acquisition, while Launch Services generated $44.6 million. Non-GAAP gross margin came in at 41.5 percent, above the 38-40 percent guidance range, and adjusted EBITDA loss narrowed to $8.8 million from a guided $20-26 million range. Backlog reached $2.36 billion, with 40 percent from launch and 60 percent from Space Systems. GAAP operating expenses totaled $142.1 million, within the $138-144 million guidance range, while non-GAAP operating expenses of $115.7 million came in below the $120-126 million range.
The company guided Q3 revenue to $250-265 million, implying about 10 percent sequential growth at the midpoint, with non-GAAP gross margin of 35-37 percent. Nasdaq-listed Rocket Lab ended the quarter with roughly $2.4 billion in cash after raising $1.08 billion through an at-the-market equity offering, funds earmarked for the Iridium acquisition and other targets.
The results come as Rocket Lab's shares have fallen 33 percent over three months, pressured by concerns about government spending cuts, intensifying competition in the launch market and supply-chain constraints, according to Zacks. The decline persists despite a $397 million U.S. Space Force contract announced Aug. 4 to build and launch Flatellite satellites for the Space-Based Airborne Moving Target Indicator program, which will fly on the company's upcoming Neutron rocket.
Rocket Lab also announced plans to acquire Iridium Communications, a deal expected to close in mid-2027 that would combine its launch and satellite manufacturing with Iridium's 66-satellite network serving more than 2.5 million subscribers. The company signed more than $1 billion in new contracts across Q2 and the period since the quarter closed, including a record $266 million Space Force deal for up to 18 suborbital missile defense launches and two GEO satellite contracts totaling more than $160 million. Launch bookings of more than $437 million for Electron, HASTE and Neutron grew the launch backlog to more than 90 missions.
The guidance raise signals management expects demand to keep accelerating as Neutron approaches its first flight, targeted for delivery to the pad in Q4 2026. Investors will watch the Q3 earnings call for updated Neutron timing and progress on the Iridium acquisition.
This article is for informational purposes only and does not constitute investment advice.
