TLDR
- Rocket Lab reported Q3 earnings of a 3-cent loss per share on $155 million revenue, beating forecasts of a 10-cent loss on $151.8 million.
- The company hit a record 37% gross margin and added 17 Electron launch contracts to its backlog.
- Fourth-quarter revenue guidance of $170-$180 million exceeded the $172 million analyst consensus.
- Stock rose 6.7% after hours to $55.37, building on year-to-date gains exceeding 100%.
- The company closed a $325 million Geost acquisition and holds cash reserves of $807.88 million.
Rocket Lab shares advanced 6.7% in after-hours trading Monday after delivering third-quarter results that topped analyst expectations across the board. The stock reached $55.37 in extended trading.
The space launch provider reported a loss of 3 cents per share on revenue of $155 million. Wall Street had projected a 10-cent loss on sales of $151.8 million. The revenue figure matched the high end of management’s $145-$155 million guidance range.
Compared to the same quarter last year, revenue jumped 48% from $104.8 million. The earnings beat triggered immediate buying pressure. Trading volume in after-hours sessions ran three times higher than typical levels.
The company launched 14 rockets through 2025, matching the full-year 2024 total. CEO Peter Beck said a new annual launch record is within reach in the coming days.
Profitability Metrics Show Improvement
Rocket Lab posted a 37% gross margin in the third quarter. The figure represents the company’s best quarterly performance and rises from 33% in the previous quarter.
The margin expansion demonstrates improving economics on each Electron rocket launch. The company signed 17 new Electron launch contracts during the quarter, a record for any three-month period. Total backlog now stands at 49 missions.
Management projects gross margins will hold between 37-39% in the fourth quarter on a GAAP basis. The guidance indicates the Q3 performance reflects sustainable business trends rather than temporary factors.
The company reported a net loss of $18.26 million and an operating loss of $58.97 million for the quarter. Despite ongoing losses, Rocket Lab maintains financial flexibility with $807.88 million in cash and total liquidity exceeding $1 billion.
Revenue Growth Expected to Continue
The company issued fourth-quarter revenue guidance of $170-$180 million. The midpoint surpasses the Wall Street consensus estimate of $172 million. The outlook implies 13% sequential growth from Q3 levels.
Management expects a Q4 EBITDA loss between $23-$29 million. Analysts had forecast a smaller $13 million loss for the period.
Rocket Lab completed its $325 million acquisition of Geost during the quarter. The transaction adds electrooptical and infrared sensor manufacturing capabilities. Beck said the deal positions the company for defense contracts including Golden Dome and Space Development Agency constellation projects.
Market Performance and Valuation
The stock has gained more than 100% in 2025. Investor enthusiasm for commercial space companies has driven valuations higher throughout the sector. Market participants expect government agencies to increase their use of private launch services.
Analyst estimates for 2027 EBITDA currently stand around $172 million. Those projections have declined from $225 million at the start of the year. The stock trades at approximately 170 times estimated 2027 EBITDA, up from 56 times in January 2025.
The Neutron medium-lift rocket remains on schedule for a first launch in Q1 2026. That larger vehicle targets satellite constellation missions that exceed Electron’s capacity.
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