0001819994-26-000028
SEC filingQ1 revenue surged 63% YoY to $200.3M, driven by space systems and launch growth, while gross margin improved to 38.2%.
Rocket Lab reported a strong first quarter of 2026, with total revenue of $200.3 million, up 63% year-over-year from $122.6 million. The growth was driven by both segments: Space Systems revenue rose 57% to $136.7 million, primarily from satellite manufacturing and acquisition contributions, while Launch Services revenue jumped 79% to $63.7 million on a higher launch cadence (six Electron missions vs. five) and improved revenue per launch ($9.3 million vs. $7.1 million). Gross profit more than doubled to $76.5 million, yielding a gross margin of 38.2%, compared to 28.8% in the prior year. The margin expansion was aided by higher launch revenue per vehicle and cost efficiencies, as cost per launch declined to $5.4 million from $5.7 million. Operating loss narrowed to $55.9 million from $59.2 million, representing an operating margin improvement of over 2000 basis points to -27.9%. Net loss decreased to $45.0 million from $60.6 million, benefiting from higher interest income ($10.1 million vs. $4.2 million) and lower interest expense ($1.3 million vs. $6.8 million) following debt conversions.
Launch Services revenue increased due to a higher launch cadence and mix shift toward more complex missions, reflected in the revenue per launch increase. Space Systems continued to be the larger segment, contributing 68% of total revenue, and its growth was supplemented by acquisitions (e.g., GEOST in August 2025) and organic spacecraft manufacturing wins. Cost of revenues for Launch Services rose 25% to $35.4 million, while Space Systems cost increased 50% to $88.4 million, aligning with revenue growth.
Management highlighted continued progress on the Neutron medium-lift launch vehicle, with qualification testing ongoing and a debut launch targeted later in 2026, though risks remain. R&D expenses increased 46% to $80.5 million as development efforts intensified. Backlog grew 20% to $2.22 billion, providing multi-year revenue visibility. The company ended the quarter with $1.2 billion in cash and $271.3 million in marketable securities, bolstered by $445.6 million in net proceeds from an at-the-market equity offering. Management expects to continue investing in production capacity and product development, with no specific numeric guidance provided.
As of March 31, 2026, Rocket Lab held $1,205,499 thousand in cash and cash equivalents and $271,346 thousand in marketable securities, totaling $1,476,845 thousand. Total debt stood at $38,585 thousand, comprising $36,869 thousand of convertible senior notes (net) and $1,716 thousand of long-term borrowings. Stockholders' equity was $2,264,367 thousand, up from $1,721,854 thousand at year-end 2025, driven by ATM equity offerings and stock-based compensation. Inventory increased to $183,146 thousand from $158,407 thousand.
Contract liabilities (deferred revenue) were $241,412 thousand, reflecting customer advances. Backlog totaled $2,219,756 thousand, with 36% expected to be recognized within 12 months. The company has a procurement agreement with MDA Corporation (17 spacecraft buses) subject to potential liquidated damages. A provision for contract losses of $4,799 thousand is recorded for a fixed-price solar panel module contract. No aggregate purchase commitments were disclosed.
No share buybacks or dividends were declared. Debt decreased by $115,526 thousand due to conversion of $118,057 thousand principal amount of convertible senior notes into 23,033,250 common shares. Capital expenditures were $27,065 thousand for the quarter. The company raised $450,347 thousand in gross proceeds from ATM equity offerings (net $444,922 thousand).
Two reportable segments: Launch Services and Space Systems. For Q1 2026, Launch Services revenue was $63,663 thousand (up from $35,592 thousand YoY) and Space Systems revenue was $136,685 thousand (up from $86,977 thousand YoY). Gross profit: Launch Services $28,223 thousand, Space Systems $48,270 thousand. Segment operating income is not reported; costs and assets are shared.