Rocket Lab Corp Earnings - Q3 2025 Analysis & Highlights
Rocket Lab's Q3 2025 earnings call highlighted record revenue, strong growth in launch contracts, and progress in space systems, including Neutron development. The company is strategically focused on acquisitions and scaling operations for long-term growth.
Key financial results:
Q3 2025 revenue reached a record $155 million, up 48% year-over-year.
GAAP gross margin for the third quarter was 37%.
Non-GAAP gross margin for the third quarter was 41.9%.
The company ended Q3 with approximately $1.1 billion in total backlog.
GAAP EPS for the third quarter was a loss of $0.03 per share.
The ending balance of cash, cash equivalents, restricted cash, and marketable securities was just over $1 billion at the end of the third quarter.
Adjusted EBITDA loss for the third quarter of 2025 was $26.3 million.
Business segment results:
Space Systems segment delivered $114.2 million in revenue.
Launch Services segment generated $40.9 million in revenue.
Capital allocation:
More than $1 billion in liquidity following the at-the-market offering program implemented in September.
Funds are intended to support acquisitions, general corporate expenditures, and working capital.
Purchases of property, equipment and capitalized software licenses were $45.9 million for the third quarter of 2025.
Industry trends and dynamics:
Electron demand is accelerating.
Launch congestion continues to build up across the country.
Competitive landscape:
Electron is becoming the preferred small launch vehicle globally.
Rocket Lab is a trusted disruptor in the industry.
Rocket Lab is the consolidator of choice for many companies in the space sector.
Growth opportunities and strategies:
Seventeen dedicated launches were signed in just three months.
Scaling a new electro-optical and infrared sensors for lucrative future contracts.
The company is ready to bring the same energy to the European space sector, with its first European foothold and expansion into Germany.
The company is scaling its products and services across both launch and space systems.
Financial Guidance and Outlook:
Revenue in the fourth quarter is expected to range between $170 million and $180 million.
GAAP gross margins in the fourth quarter are expected to range between 37% to 39%.
Non-GAAP gross margin in the fourth quarter is expected to range between 43% to 45%.
Fourth quarter GAAP operating expenses are expected to range between $122 million and $128 million.
Fourth quarter non-GAAP operating expenses are expected to range between $107 million and $103 million.
Fourth quarter adjusted EBITDA loss is expected to range between $23 million and $29 million.
Neutron Program Update:
Aiming to get Neutron to the pad in Q1 next year, with the first launch thereafter.
The labor cost for the program is about $15 million a quarter.
The company has set high expectations for Neutron's first flight, aiming to make it to orbit on the first try.
The company is putting Neutron through an even more extensive barrage of testings than it did Electron.
The company estimates that it will have spent approximately $360 million exiting across R&D and CapEx through the end of 2025.
