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FORM 10-Q
AI

Quarterly Report - August 7, 2025

Filed August 7, 2025
·
Period ending June 30, 2025
·
0001628280-25-038936

Q2 Revenue: $144M (+36% YoY)

Financial Metrics

Revenue
$145M
YoY Growth
+36.0%
Gross Margin
32.1%
Operating Margin
-41.3%
Free Cash Flow
$-138M
Cash Position
$564M
Net Margin
-46.0%
Debt/Equity
0.58x
Current Ratio
2.67x

Brief

Q2 revenue rose 36% YoY to $144M, driven by Space Systems (+27%) and Launch Services (+59%) with 5 Electron launches. Gross margin improved to 32.1% from 25.6%. Operating loss widened to $(60M) amid heavy R&D on Neutron.

Detailed Brief

Rocket Lab reported Q2 revenue of $144.5M, up 36% YoY, with Space Systems at $97.9M (up 27% from satellite manufacturing) and Launch Services at $46.6M (up 59% from 5 launches vs 4). H1 revenue $267.1M (+34% YoY), gross profit $81.6M (30.6% margin, up from 25.8%). Cash position strengthened to $564M from ATM offering proceeds; backlog $995M. Op expenses rose on Neutron dev ($66M R&D Q2) and hiring. Net loss $66.4M (-46% margin). Capex $61M on production ramp; OCF used $77M H1.

Key Telemetry

  • Revenue: $144M (+36% YoY) with 5 Electron launches vs 4
  • Gross Margin: 32.1% (+6.5pp YoY) from scale and mix
  • Backlog: $995M (58% in 12 months), down from $1.1B
  • Cash: $564M (+108% QoQ) post $387M net ATM raise
  • Launches: 10 H1 (+25% YoY)

Impact Vector

Strong revenue growth and margin expansion signal scaling in Space Systems and launches, supporting path to profitability via Neutron (target 2025 debut) and backlog conversion. $750M liquidity affords 18+ month runway amid $138M H1 FCF burn, but high R&D/op losses pressure near-term. Competitive edge in small/medium launches and components positions for constellations; risks include Neutron delays, tariffs on imports.

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