"Rocket Lab ( NASDAQ: RKLB) beat on both revenue and earnings in Q3 while posting record gross margins, sending the stock surging 8.3% in after-hours trading. The space launch company reported $155.08M in revenue versus $154.78M expected and swung to a loss of $0.03 per share from an anticipated loss of $0.11. Investors rewarded the execution immediately. The stock jumped from $52.48 at the close to $56.68 by 4:45 PM ET, with peak volume hitting 687K shares in a single five-minute window (roughly 3x normal after-hours flow)."
"The real story here isn't just the beat. It's the 37% gross margin Rocket Lab achieved, the highest in company history. That matters because it shows the Electron rocket business is becoming more profitable per launch, even as the company scales. Management secured 17 Electron launch contracts this quarter, also a record, and completed the $325M acquisition of Geost to bolster in-space manufacturing capabilities."
"I'd keep an eye on the gross margin trajectory. For a company still burning cash on the path to profitability, demonstrating that unit economics improve as volume grows is the clearest sign the business model works. Q4 guidance shows margins holding in the 37% to 39% range on a GAAP basis (43% to 45% adjusted), suggesting this wasn't a one-time event."
Rocket Lab reported Q3 revenue of $155.08M, beating expectations and rising 48% year over year, and reported EPS of -$0.03 versus an expected -$0.11. Gross margin reached a record 37%, up from 33% in Q2, indicating improving per-launch profitability as Electron scales. Management secured 17 Electron launch contracts and completed a $325M acquisition of Geost to expand in-space manufacturing capabilities. Q4 guidance projects GAAP margins of 37%–39% (43%–45% adjusted). The Neutron medium-lift rocket is scheduled for its first launch in Q1 2026. Operating loss was $58.97M.
Read at 24/7 Wall St.
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