How did Rocket Lab perform financially in Q4 and full-year 2025?

Q4 2025 revenue was $179.7M, up about 36% from $132.4M a year earlier, and full-year revenue was $601.8M, up 38%. GAAP gross profit for the year was $207.2M (34.4% margin). The GAAP net loss for Q4 was $52.9M and for the full year was $198.2M. Q4 GAAP operating loss was $51.0M, roughly flat year over year, as revenue growth offset higher operating expenses.

What is the size and significance of the new SDA contract and backlog?

Rocket Lab won an $816M prime contract from the Space Development Agency to design and build 18 missile warning, tracking, and defense spacecraft under Tracking Layer Tranche 3. It is the company's largest single contract to date. Total backlog reached $1.85B at year-end, up 73% year over year. Management frames this as evidence Rocket Lab is competing as a prime against legacy aerospace contractors, though backlog conversion timing and execution will determine how quickly it shows up in revenue.

What is the risk from the Neutron delay?

Neutron's first launch is now targeted for Q4 2026, after a stage 1 tank test failure prompted a schedule update. Neutron is intended to address medium-lift constellation and national security launch demand, so further delay could push back the revenue and margin contribution the company expects from it. Meanwhile, R&D spending is elevated: Q4 R&D was $78.8M versus $48.3M a year earlier, and it will remain a significant drag on near-term profitability until Neutron is operational.

What does Q1 2026 guidance imply for the business?

Management guided Q1 2026 revenue to $185-200M, implying about 57% year-over-year growth at the midpoint. GAAP gross margin is expected at 34-36% and non-GAAP at 39-41%. GAAP operating expenses are guided to $120-126M, and adjusted EBITDA is expected to be a loss of $21-27M. Basic weighted average shares are guided at 605M, including about 46M Series A convertible participating preferred shares, which investors should factor into per-share estimates.

How is Rocket Lab funding its growth, and how strong is its liquidity?

In 2025 the company raised about $1.15B gross (roughly $1.12B net of issuance costs) through at-the-market equity offerings and also added a $26.7M secured term loan while repaying $87.9M of term debt. Convertible senior notes on the balance sheet dropped to $152M from $345M, reducing debt. Year-end cash, equivalents, and marketable securities totaled about $1.10B. Operating cash flow was negative $165.5M and capital expenditures were $156.3M, so the company continues to rely on external capital and cash burn will remain a key monitoring point.

RKLB 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 26, 2026. Cited figures are marked; the original filing is the authoritative source.

Rocket Lab (RKLB) reported record fourth-quarter 2025 revenue of $179.7 million^a, up 36% year over year from $132.4 million, and record full-year 2025 revenue of $601.8 million, up 38% from $436.2 million.

Gross profit rose to $207.2 million^b for the year, a GAAP gross margin of 34.4% (up from 26.6% in 2024), and non-GAAP gross margin reached 39.7%. Backlog grew 73% year over year to $1.85 billion, led by the $816 million Space Development Agency contract to build 18 missile warning and tracking satellites. Management also highlighted 21 Electron and HASTE launches in 2025 with a 100% mission success rate and several acquisitions in optical payloads and precision manufacturing.

Profitability remains negative. The full-year GAAP net loss widened to $198.2 million^c (EPS of -$0.37), and adjusted EBITDA was a loss of $101.2 million. Operating expenses grew sharply, with Q4 R&D reaching $78.8 million versus $48.3 million a year earlier, reflecting Neutron development spending.

The balance sheet was substantially strengthened through an at-the-market equity program that raised roughly $1.12 billion^d net in 2025, lifting cash and marketable securities to about $1.10 billion at year-end. Convertible senior notes fell from $345 million to $152 million on the balance sheet. The key forward-looking item is a Neutron schedule slip: first launch is now targeted for Q4 2026 following a stage 1 tank test failure.

For Q1 2026, management guided revenue of $185-200 million (midpoint implying about 57% year-over-year growth), GAAP gross margin of 34-36%, and an adjusted EBITDA loss of $21-27 million. Investors will focus on Neutron execution, the pace of backlog conversion, and whether margins continue to improve as the business scales.

02—Key points

Key Highlights

Record Q4 2025 revenue of $179.7M (+36% YoY); record full-year revenue of $601.8M (+38% YoY).
Backlog reached a record $1.85B, up 73% YoY, anchored by the $816M SDA Tracking Layer Tranche 3 prime contract for 18 satellites.
Full-year GAAP gross margin improved to 34.4% from 26.6%; non-GAAP gross margin of 39.7% vs. 32.0% in 2024.
Net loss widened to $198.2M for 2025 (EPS -$0.37), driven by R&D rising to $270.7M from $174.4M, largely for Neutron development.
Adjusted EBITDA loss of $101.2M for 2025, vs. a $96.9M loss in 2024; Q4 adjusted EBITDA loss narrowed to $17.4M from $23.2M.
Neutron first launch pushed to Q4 2026 after a stage 1 tank test failure, a key schedule risk.
Q1 2026 guidance: revenue of $185-200M, GAAP gross margin 34-36%, adjusted EBITDA loss of $21-27M.
Balance sheet strengthened: ~$1.12B net raised via at-the-market equity offerings in 2025; cash and marketable securities of ~$1.10B at year-end, and convertible notes reduced to $152M from $345M.

03—Questions

Frequently Asked Questions

How did Rocket Lab perform financially in Q4 and full-year 2025?
Q4 2025 revenue was $179.7M, up about 36% from $132.4M a year earlier, and full-year revenue was $601.8M, up 38%. GAAP gross profit for the year was $207.2M (34.4% margin). The GAAP net loss for Q4 was $52.9M and for the full year was $198.2M. Q4 GAAP operating loss was $51.0M, roughly flat year over year, as revenue growth offset higher operating expenses.
What is the size and significance of the new SDA contract and backlog?
Rocket Lab won an $816M prime contract from the Space Development Agency to design and build 18 missile warning, tracking, and defense spacecraft under Tracking Layer Tranche 3. It is the company's largest single contract to date. Total backlog reached $1.85B at year-end, up 73% year over year. Management frames this as evidence Rocket Lab is competing as a prime against legacy aerospace contractors, though backlog conversion timing and execution will determine how quickly it shows up in revenue.
What is the risk from the Neutron delay?
Neutron's first launch is now targeted for Q4 2026, after a stage 1 tank test failure prompted a schedule update. Neutron is intended to address medium-lift constellation and national security launch demand, so further delay could push back the revenue and margin contribution the company expects from it. Meanwhile, R&D spending is elevated: Q4 R&D was $78.8M versus $48.3M a year earlier, and it will remain a significant drag on near-term profitability until Neutron is operational.
What does Q1 2026 guidance imply for the business?
Management guided Q1 2026 revenue to $185-200M, implying about 57% year-over-year growth at the midpoint. GAAP gross margin is expected at 34-36% and non-GAAP at 39-41%. GAAP operating expenses are guided to $120-126M, and adjusted EBITDA is expected to be a loss of $21-27M. Basic weighted average shares are guided at 605M, including about 46M Series A convertible participating preferred shares, which investors should factor into per-share estimates.
How is Rocket Lab funding its growth, and how strong is its liquidity?
In 2025 the company raised about $1.15B gross (roughly $1.12B net of issuance costs) through at-the-market equity offerings and also added a $26.7M secured term loan while repaying $87.9M of term debt. Convertible senior notes on the balance sheet dropped to $152M from $345M, reducing debt. Year-end cash, equivalents, and marketable securities totaled about $1.10B. Operating cash flow was negative $165.5M and capital expenditures were $156.3M, so the company continues to rely on external capital and cash burn will remain a key monitoring point.

04—Continue

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