0001628280-25-038936
SEC filingRevenue grew 36% YoY to $144.5M driven by space systems and launch, with gross margin expanding to 32.1%.
For the three months ended June 30, 2025, Rocket Lab reported revenue of $144.5M, a 36% increase from $106.3M in the prior-year quarter. The growth was primarily fueled by a 27% rise in Space Systems revenue to $97.9M, driven by satellite manufacturing, and a 59% jump in Launch Services revenue to $46.6M, reflecting five Electron launches (versus four) and higher revenue per point-in-time mission. Gross profit improved to $46.4M (32.1% margin) from $27.2M (25.6% margin), as cost of revenues grew at a slower 24% pace. Operating loss widened to $59.6M from $43.3M, with R&D spending increasing 66% to $66.1M due to Neutron development and spacecraft product expansion, and SG&A rising 31% to $39.9M on higher staffing and transaction costs. Net loss reached $66.4M compared to $41.6M in Q2 2024.
Launch Services revenue increased 59% YoY to $46.6M, driven by a higher launch cadence (five versus four missions) and revenue recognized on over-time contracts, along with a higher revenue per point-in-time launch ($7.9M vs. $7.1M). Cost of revenues for launch rose 50% to $32.4M, reflecting the increased activity and over-time cost recognition. Space Systems revenue grew 27% to $97.9M, led by satellite manufacturing wins. Cost of revenues for the segment increased 14% to $65.7M, indicating improving margins as the business scales. Backlog decreased to $995.4M from $1.067B at year-end 2024, with $585.8M in Space Systems and $409.6M in Launch Services, as revenue recognition outpaced new bookings.
Management emphasized continued investment in Neutron development, which remains a key driver of future growth and capital allocation. Cash and marketable securities stood at $749.3M, providing ample runway for R&D and potential acquisitions (e.g., the planned GEOST acquisition for up to $275M). Tariffs are still a monitored risk but have not materially impacted operations to date. The company expects R&D to remain elevated as a percentage of revenue but decline over time, while SG&A is expected to increase in absolute dollars but decrease as a percentage of revenue. No quantitative guidance was provided, but the launch cadence trajectory and satellite manufacturing pipeline suggest sustained top-line momentum.
Net loss of $127.0M drove negative operating cash flow, while stock-based compensation ($37.2M) and depreciation ($17.5M) provided non-cash offsets. Working capital was a net drain, notably accounts receivable increase of $25.3M and inventory build of $11.5M, partially offset by contract asset reductions and higher payables. Capex intensity remains high at $60.7M, consuming 78% of operating cash flow (negative); no free cash flow generated. Financing activities raised $406.0M via ATM equity, funding operations and investment. No share repurchases or dividends were declared. The large cash burn and dependence on equity issuance highlight near-term liquidity reliance on capital markets.