Rocket Lab Reports Record $602M Revenue Yet RKLB Shares Dip Post-Earnings

TLDR

• Q4 2025 revenue for Rocket Lab (RKLB) reached $180 million, marking a 36% annual increase
• Annual 2025 revenue climbed to $602 million, reflecting 38% growth compared to $436 million in 2024
• Company backlog expanded 73% to reach $1.85 billion
• Shares declined 0.44% in after-hours trading following the earnings announcement
• Company projects Q1 2026 revenue between $185 million and $200 million

Rocket Lab USA delivered record-setting financial performance throughout 2025, yet shares retreated in extended trading sessions.

The company reported Q4 2025 revenue of $180 million, representing a 36% increase compared to the year-ago period. Annual revenue totaled $602 million, marking a 38% rise from the previous year’s $436 million.

Despite the robust financial metrics, RKLB shares declined 0.44% during after-hours trading, settling at $69.89. The stock had previously fallen 5.13% during the preceding week.

Rocket Lab USA, Inc., RKLB

These earnings highlight a remarkable 10x revenue expansion since the company’s Nasdaq debut in 2021, demonstrating a compound annual growth rate exceeding 76%.

Profitability metrics showed positive momentum. The company’s GAAP gross margin for Q4 stood at 38%, climbing 100 basis points from the previous quarter. Non-GAAP gross margin hit 44.3%, representing a sequential increase of 240 basis points.

However, the company posted a GAAP EPS loss of $0.09 for the fourth quarter, which may have contributed to investor hesitation.

Backlog and Contract Wins

The earnings report highlighted significant growth in the company’s order backlog. Total backlog surged 73% year-over-year to $1.85 billion, with management projecting 37% of that total will be fulfilled within the coming 12 months.

Rocket Lab announced an $816 million contract win from the Space Development Agency for 18 satellites, substantially strengthening its revenue outlook.

The quarter also saw completion of the Optical Support acquisition, broadening the company’s technological portfolio.

Neutron and 2026 Outlook

Management emphasized continued investment in the Neutron rocket initiative as a strategic focus. Neutron represents the company’s next-generation reusable launch platform currently under development.

Looking ahead to Q1 2026, management provided revenue guidance ranging from $185 million to $200 million. Wall Street analysts project full-year 2026 revenue to reach $885.46 million.

Shares have appreciated 242% over the trailing 12-month period and climbed 51% during the past six months, despite recent weakness.

At the time of the earnings release, Rocket Lab commanded a market capitalization of approximately $38.63 billion.

Several market observers have indicated the stock trades above fair value estimates, potentially explaining why solid earnings failed to spark a post-announcement rally.

Key risks identified include supply chain vulnerabilities, intensifying competition within the commercial launch sector, and broader macroeconomic headwinds.

Based on current trading levels, the company’s market capitalization stands at roughly $37.37 billion.

The Q1 2026 revenue forecast of $185 million to $200 million provides the most immediate performance indicator for shareholders monitoring the stock’s trajectory.

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