"Rocket Lab closed 2025 strong. Q4 revenue hit $179.65 million, up 35.7% year over year, with non-GAAP gross margin of 44.3% and an EPS loss of -$0.09, beating the -$0.098 estimate. Full-year revenue reached $601.8 million (+37.96%) on 21 launches with 100% success."
"The bigger story is the pipeline. Backlog ended at $1.85 billion, up 73% year over year, anchored by the $816 million Space Development Agency Tranche 3 award. Offsetting that, a stage-1 tank test failure pushed Neutron's first launch to Q4 2026. Shares have absorbed the news, climbing 16.29% over the past month and 250.36% over the past year."
"I'll be watching three things. First, I'll be looking for an updated timeline for Neutron, along with a capex framework. Cash sits at $828.66 million, but FY2025 free cash flow was -$321.8 million, and capex was $156.3 million. The burn pace matters."
"Second, margins. Q4's 44.3% non-GAAP gross margin set a high bar, and Q1 guidance calls for a step down to 39%-41%. Investors will look at the mix between Space Systems and Launch, as well as how the $325 million Geost acquisition fits into the new Payloads unit."
Rocket Lab is preparing to report first-quarter 2026 results on May 7, with investors focused on whether recent momentum can offset execution risk. The company delivered record performance in 2025, including Q4 revenue of $179.65 million, 35.7% year-over-year growth, 44.3% non-GAAP gross margin, and full-year revenue of $601.8 million across 21 successful launches. Backlog rose to $1.85 billion, supported by an $816 million Space Development Agency Tranche 3 award, but Neutron experienced a stage-1 tank test failure that moved its first launch to Q4 2026. Q1 guidance targets non-GAAP gross margin of 39% to 41%, while investors monitor cash burn, capex plans, and defense conversion through SDA and SHIELD-related wins.
Read at 24/7 Wall St.
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