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Annual Report - February 26, 2026
FY25 Revenue: $602M (+38% YoY), gross margin improved to 34%
Financial Metrics
Brief
FY25 revenue reached $602M, up 38% YoY, driven by 59% growth in Launch Services from higher cadence and 30% in Space Systems. Gross margins expanded to 34% from 27% YoY on production efficiencies. Operating loss narrowed to -38% amid Neutron investments.
Detailed Brief
Rocket Lab delivered FY25 revenue of $602M, up 38% YoY, with Launch Services at $199M (+59%) from 21 Electron missions (revenue/launch $8.5M) and Space Systems at $403M (+30%) from spacecraft builds. Gross profit hit $207M (34% margin, +770bps YoY) via scale and cost efficiencies; cash position strengthened to $1.1B amid $1.1B ATM raise. Operating loss was $229M (-38% margin) on $271M R&D (Neutron/spacecraft) and $165M SG&A.
Operationally, 21 launches (2nd most frequent orbital rocket in 2025) supported $476M backlog (+73% YoY to $1.8B, 77% Space Systems). Neutron first launch slipped to Q4 2026 post-tank failure; GEOST acquisition added $11M revenue/$8M loss. SDA Tranche 3 ($816M potential) boosts backlog.
Key Telemetry
- • Revenue: $602M (+38% YoY) with Launch $199M (+59%, 21 missions) and Space Systems $403M (+30%)
- • Gross Margin: 34.4% (+770bps YoY) from scale/efficiencies; cost/launch fell to $4.8M (-16% YoY)
- • Backlog: $1.8B (+73% YoY) incl. $816M SDA Tranche 3; 37% expected <12mo
- • Cash: $1.1B liquidity (+>100% YoY) post-$1.1B ATM; OCF $(166M) annual burn
- • Neutron: Q4 2026 first launch targeted post-tank test failure
Impact Vector
Investors benefit from 38% revenue growth and margin expansion signaling path to profitability via Electron cadence (21 launches) and Space Systems scale (GEOST/SDA wins), with $1.8B backlog ensuring multi-year visibility. $1.1B liquidity funds Neutron (medium-lift for constellations) despite dev delays, sustaining growth amid competition; risks include Neutron execution and gov't funding, but strong balance sheet (D/E<0.1) supports catalysts like Neutron debut and backlog conversion.