10-KPeriod: FY2025

Rocket Lab Corp Annual Report, Year Ended Dec 31, 2025

Filed February 26, 2026For Securities:RKLB

Summary

Rocket Lab Corporation (RKLB) has demonstrated significant growth in its 2025 fiscal year, with revenues increasing by 38% to $601.8 million. This expansion was driven by strong performance in both its Launch Services and Space Systems segments. The company's focus on vertical integration and technological innovation, including its 3D-printed Rutherford engines and carbon composite structures, continues to be a core strength. Despite a substantial increase in research and development expenses, primarily related to the development of the Neutron launch vehicle, Rocket Lab is strategically positioning itself for future growth in the expanding space economy. However, the company is still operating at a net loss, reporting a net loss of $198.2 million for 2025, indicating ongoing investment in product development and operational scaling. A key development highlighted is an issue encountered during Neutron's first stage tank qualification testing in January 2026, which has pushed the targeted first launch to Q4 2026. Investors should monitor the progress of Neutron and the company's ability to manage its significant R&D spend while moving towards profitability.

Financial Highlights

54 data points
Beta

Revenue

$601.80M

34.4% Gross Margin

Net Income

-$198.21M

-32.9% Net Margin

EPS (Diluted)

$-0.37

Total Assets

$2.32B

Cash & Equivalents

$828.66M

Free Cash Flow

-$321.81M

Financial Statements
Beta
Revenue$601.80M
Cost of Revenue$394.62M
Gross Profit$207.18M
R&D Expenses$270.72M
SG&A Expenses$165.30M
Operating Expenses$436.02M
Operating Income-$228.84M
Net Income-$198.21M
EPS (Basic)$-0.37
EPS (Diluted)$-0.37
Shares Outstanding (Basic)530.66M
Shares Outstanding (Diluted)530.66M

Key Highlights

  • 1Revenue increased by 38% to $601.8 million in 2025, driven by strong growth in both Space Systems and Launch Services.
  • 2The Space Systems segment saw revenue increase by 30% to $402.8 million, while Launch Services revenue grew by 59% to $199.0 million.
  • 3Research and Development (R&D) expenses increased significantly by 55% to $270.7 million, largely due to advancements in the Neutron launch vehicle and expansion of the spacecraft components portfolio.
  • 4The company secured a significant contract with the Space Development Agency (SDA) for 18 satellites valued at up to $816 million.
  • 5A setback occurred in Neutron development with a first stage tank qualification testing failure in January 2026, pushing the targeted first launch to Q4 2026.
  • 6Backlog increased substantially to $1,847.3 million as of December 31, 2025, indicating strong future revenue potential, boosted by the GEOST acquisition and SDA contract.
  • 7Despite revenue growth, the company reported a net loss of $198.2 million for 2025, reflecting continued investment in long-term growth initiatives.

Frequently Asked Questions

Rocket Lab's strategy is to be an end-to-end space company, providing reliable launch services and integrated space systems. They are achieving this through vertical integration, advanced manufacturing techniques, and the development of both the Electron and the next-generation Neutron launch vehicles. The company has seen strong revenue growth and secured significant contracts, such as the SDA Tracking Layer Tranche 3 program. However, ongoing investment in R&D, particularly for Neutron, continues to result in net losses, and a recent development in Neutron's stage 1 tank qualification testing has pushed its first launch target to late 2026, indicating development challenges.

Rocket Lab experienced robust revenue growth of 38% in 2025, reaching $601.8 million. This growth was primarily fueled by its Space Systems segment, alongside an increase in launch cadence for its Launch Services. Despite this top-line expansion, the company continues to operate at a net loss, reporting a net loss of $198.2 million for 2025. This is largely due to significant investments in research and development, particularly for the Neutron launch vehicle, and the costs associated with scaling its operations and expanding its Space Systems business through acquisitions.

Key risks include the successful development and timely deployment of the Neutron launch vehicle, which experienced a setback with a stage 1 tank qualification testing failure in January 2026, impacting its launch schedule. The company also faces risks related to its reliance on a few major customers, potential government funding disruptions, intense competition, and the complexities of managing rapid growth. Furthermore, achieving and sustaining profitability remains a significant challenge given the ongoing high levels of R&D and operational expenses.

The acquisition of GEOST in August 2025 significantly expanded Rocket Lab's Space Systems capabilities, particularly in satellite bus manufacturing and integration, contributing to the substantial revenue growth in that segment. The $816 million SDA Tracking Layer Tranche 3 contract awarded in December 2025 is a major win, providing a significant backlog and validating Rocket Lab's space systems capabilities for large government programs. These events are crucial for diversifying revenue streams and establishing the company as a comprehensive space solutions provider.