TLDR
- Rocket Lab delivered Q4 2025 revenue of $180 million, representing a 36% year-over-year increase
- Annual 2025 revenue totaled $602 million, marking a 38% rise from 2024’s $436 million
- Company backlog surged 73% to reach $1.85 billion
- Shares declined 0.44% in after-hours trading following the earnings release
- Revenue guidance for Q1 2026 ranges from $185 million to $200 million
Rocket Lab USA delivered its most impressive financial performance to date in 2025, yet shares retreated during extended trading hours following the announcement.
The aerospace company reported fourth-quarter revenue of $180 million, marking a 36% year-over-year improvement compared to Q4 2024. For the complete fiscal year, revenue climbed to $602 million, representing a 38% increase over the previous year’s $436 million.
Despite the impressive financial metrics, RKLB shares fell 0.44% during after-hours activity, settling at $69.89. The decline extended a challenging week that saw the stock lose 5.13% over the previous five trading days.
The quarterly figures represent the culmination of a remarkable growth trajectory that has seen revenue multiply tenfold since the company’s Nasdaq debut in 2021, achieving a compound annual growth rate exceeding 76%.
Profitability metrics showed encouraging trends. The company’s GAAP gross margin for the fourth quarter reached 38%, climbing 100 basis points from the previous quarter. On a non-GAAP basis, gross margin hit 44.3%, advancing 240 basis points quarter-over-quarter.
However, the company posted a GAAP earnings per share loss of $0.09 for the quarter, a factor that may have contributed to the subdued market response.
Backlog and Contract Wins
Among the most encouraging metrics in the earnings report was the company’s growing contract backlog. The total backlog expanded 73% year-over-year to $1.85 billion. Management indicated that approximately 37% of this backlog is expected to be realized as revenue over the coming 12 months.
Rocket Lab announced it had been awarded an $816 million contract from the Space Development Agency for 18 satellites, significantly bolstering its future revenue visibility.
During the reporting period, the company also finalized its acquisition of Optical Support, broadening its operational capabilities.
Neutron and 2026 Outlook
Company leadership emphasized continued investment in the Neutron rocket program as a strategic imperative. Neutron represents Rocket Lab’s next-generation reusable launch vehicle, currently under active development.
Looking ahead to the first quarter of 2026, management issued revenue guidance between $185 million and $200 million. Wall Street analysts project full-year 2026 revenue to reach $885.46 million.
Despite the recent pullback, the stock has delivered substantial returns, climbing 242% over the trailing 12 months and advancing 51% over the past six months.
At the time of the earnings announcement, Rocket Lab commanded a market capitalization of approximately $38.63 billion.
Several market analysts have suggested the stock trades above its fundamental fair value, which may partially account for the muted reaction to otherwise robust financial results.
Key risk factors 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 near-term revenue guidance of $185 million to $200 million for Q1 2026 provides investors with the most immediate metric to track the company’s operational momentum.
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