Rocket Lab reported fiscal third‑quarter 2025 revenue of $155.08 million, a 48% increase from the $105 million earned in the same period a year earlier. The jump was driven by a 37% rise in launch‑service revenue to $41 million and a 30% increase in the Space Systems segment to $114 million, reflecting strong demand for its Electron launch vehicle and growing satellite‑component sales.
The company posted a GAAP loss of $0.03 per share, a significant improvement over the consensus estimate of a $0.05 loss and a narrower loss than the $0.1064 per share expected on a non‑GAAP basis. The beat was largely due to tighter cost control and a more favorable mix of higher‑margin launch contracts, which offset the $0.13 loss per share recorded in Q2 2025 and the $0.10 loss in Q3 2024.
Gross margin expanded to 37% from 26.7% in Q3 2024, the highest level in the company’s history. The improvement was driven by higher average selling prices for Electron launches, better fixed‑overhead absorption as launch volume increased, and a shift toward the more profitable Space Systems business. The margin expansion helped narrow the loss despite a modest rise in operating expenses related to the Neutron rocket development.
Rocket Lab’s backlog reached $1.1 billion, including 17 new launch contracts signed during the quarter. The backlog growth underscores sustained demand for the company’s small‑satellite launch services and the expanding satellite‑component business. Management noted that the backlog is a key indicator of future revenue and that the company is on track to meet its Q4 guidance of $170–$180 million in revenue.
The company confirmed that the first launch of its medium‑lift Neutron rocket is now scheduled for the first quarter of 2026, a shift from earlier expectations of a 2025 launch. CEO Peter Beck said the delay is a “strategic decision to ensure a fully successful first flight” and that the program’s rapid progress and cost discipline remain on track. The postponement is a headwind that will delay the company’s entry into the medium‑lift market, but it is offset by the strong launch backlog and the growing Space Systems segment.
Management reiterated confidence in the company’s trajectory, citing robust demand, improved unit economics, and a growing portfolio of satellite‑component contracts. The Q4 revenue guidance of $170–$180 million aligns with the company’s expectation of continued demand for Electron launches and the expansion of its satellite‑component business.
Investors reacted positively to the results, with the EPS beat and margin expansion seen as evidence of improving profitability and operational execution. The company’s guidance and backlog strength suggest a solid near‑term outlook, while the Neutron launch delay is viewed as a manageable headwind in the context of the company’s broader growth strategy.
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