01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Rocket Lab Corporation (RKLB) reported significant revenue growth of 63% for the first quarter of 2026, reaching $200.3 milliona, driven by strong performance in both its Launch Services and Space Systems segments.
The company's balance sheet shows a healthy increase in cash and cash equivalents to $1.2 billionb, up from $828.7 million at the end of 2025, providing substantial liquidity. Despite the revenue surge, RKLB continued to invest heavily in research and development, particularly for the Neutron launch vehicle, leading to an operating loss of $56.0 million. However, the significant revenue increase and improved gross profit margin to 38.2% (up from 28.8% in Q1 2025) indicate positive operational leverage.
Key developments include ongoing progress on the Neutron launch vehicle, which is on track for its debut launch later in the year, though risks and uncertainties remain. The company also successfully closed the acquisition of GEOST LLC in August 2025, integrating new capabilities into its Space Systems segment. While the company continues to operate at a net loss, the substantial revenue growth, strong cash position, and strategic investments in future growth drivers like Neutron position RKLB for potential long-term value creation, though investors should remain mindful of the ongoing R&D expenditures and development risks.
02—Key points
Key Highlights
- Total revenues increased by 63% to $200.3 million for Q1 2026 compared to Q1 2025, driven by both Launch Services and Space Systems.
- Cash and cash equivalents significantly increased to $1.2 billion as of March 31, 2026, up from $828.7 million at the end of 2025, indicating strong liquidity.
- Gross profit margin improved to 38.2% in Q1 2026, up from 28.8% in Q1 2025, demonstrating better cost absorption and operational efficiency.
- The GEOST acquisition was completed in August 2025, adding $134.7 million in goodwill and $155.5 million in net identifiable assets, contributing to the Space Systems segment.
- Research and Development expenses rose by 46% to $80.5 million, primarily due to continued investment in the Neutron launch vehicle development and expansion of the spacecraft components portfolio.
- Operating loss remained substantial at $56.0 million, though it narrowed from $59.2 million in the prior year's comparable period, reflecting increased operational scale.
- Backlog increased to $2.22 billion as of March 31, 2026, from $1.85 billion at the end of 2025, indicating a robust pipeline of future contracted revenue.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2026, Rocket Lab lost $0.22.
- Revenue$200.3M100.0%
- Cost of revenue−$123.9M61.8%
- Gross profit$76.5M38.2%
- Operating costs−$132.5M66.1%
- Operating income−$56.0M27.9%
- Interest, other & tax$10.9M5.5%
- Net income−$45.0M22.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $200.35M$122.57M | +63.5% |
| Cost of Revenue | $123.86M$87.32M | +41.8% |
| Gross Profit | $76.49M$35.25M | +117.0% |
| R&D Expenses | $80.51M$55.11M | +46.1% |
| SG&A Expenses | $51.95M$39.33M | +32.1% |
| Operating Expenses | $132.46M$94.44M | +40.3% |
| Operating Income | -$55.97M-$59.19M | +5.4% |
| Net Income | -$45.02M-$60.62M | +25.7% |
| EPS (Basic) | $-0.07$-0.12 | +41.7% |
| EPS (Diluted) | $-0.07$-0.12 | +41.7% |
| Shares Outstanding (Basic) | 605.43M505.61M | +19.7% |
| Shares Outstanding (Diluted) | 605.43M505.61M | +19.7% |
05—Questions
Frequently Asked Questions
What is Rocket Lab's revenue performance for the first quarter of 2026?
Rocket Lab reported a significant year-over-year revenue increase of 63% for the first quarter of 2026, totaling $200.3 million. This growth was driven by a 57% increase in Space Systems revenue and a 79% increase in Launch Services revenue.
How is Rocket Lab's cash position?
The company's liquidity is strong, with cash and cash equivalents increasing to $1.2 billion as of March 31, 2026, up from $828.7 million at the end of 2025. This provides ample resources for ongoing operations and strategic investments.
What is the status of the Neutron launch vehicle development?
Rocket Lab continues to make progress on the Neutron launch vehicle, with qualification testing of flight hardware ongoing. The company states that the program is on track for its debut launch later in 2026, although it acknowledges the inherent risks and uncertainties in developing a new launch vehicle, which could lead to delays.
How did the GEOST acquisition impact the financials?
The acquisition of GEOST LLC in August 2025 contributed to the company's Space Systems segment. The preliminary purchase price was $290.2 million, including $134.7 million in goodwill and $155.5 million in identifiable net assets acquired. The acquisition is expected to enhance Rocket Lab's capabilities in spacecraft manufacturing and related services.
06—Continue