Rocket Lab (RKLB) Stock Falls After Earnings Despite Record Revenue

TLDR

• Rocket Lab (RKLB) Q4 2025 revenue hit $180 million, up 36% year-over-year
• Full-year 2025 revenue reached $602 million, up 38% from $436 million in 2024
• Total backlog rose 73% to $1.85 billion
• Stock slipped 0.44% in aftermarket trading despite strong results
• Q1 2026 revenue guidance set at $185 million–$200 million

Rocket Lab USA posted its strongest financial year on record in 2025, but the stock still fell in aftermarket trading.

Q4 2025 revenue came in at $180 million, a 36% jump from the same quarter in 2024. Full-year revenue hit $602 million, up 38% from $436 million the prior year.

Despite those numbers, RKLB dropped 0.44% in aftermarket trading, closing at $69.89. The stock was also down 5.13% over the prior week.

Rocket Lab USA, Inc., RKLB

The results cap a 10x revenue increase since Rocket Lab listed on Nasdaq in 2021, with a compound annual growth rate above 76%.

Gross margins also moved in the right direction. GAAP gross margin for Q4 reached 38%, up 100 basis points from the prior quarter. Non-GAAP gross margin came in at 44.3%, up 240 basis points sequentially.

The company reported a GAAP EPS loss of $0.09 for Q4, which likely added to the cautious investor reaction.

Backlog and Contract Wins

One of the stronger data points from the report was the backlog. Total backlog grew 73% year-over-year to $1.85 billion. The company expects to convert 37% of that within the next 12 months.

Rocket Lab also secured an $816 million Space Development Agency contract for 18 satellites, a deal that adds meaningful visibility to its revenue pipeline.

The company closed its acquisition of Optical Support during the period, further expanding its capabilities.

Neutron and 2026 Outlook

Executives pointed to ongoing investment in the Neutron rocket program as a key priority. Neutron is Rocket Lab’s larger, reusable launch vehicle currently in development.

For Q1 2026, the company guided revenue of $185 million to $200 million. Full-year 2026 revenue is projected at $885.46 million by analysts.

The stock has gained 242% over the past 12 months and 51% over the last six months, even with the recent pullback.

At the time of the earnings report, Rocket Lab carried a market cap of around $38.63 billion.

Some analysts flagged the stock as overvalued relative to its fair value, which may partly explain why strong results didn’t translate into a post-earnings rally.

Supply chain risks, rising competition in the launch market, and macroeconomic pressures were listed among the key risks going forward.

The company’s current market cap sits at approximately $37.37 billion based on recent trading data.

The most recent guidance of $185 million to $200 million in Q1 2026 revenue remains the clearest near-term benchmark for investors watching the stock.

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