Key Highlights
- Rocket Lab (RKLB) delivered Q4 2025 revenue of $180 million, representing 36% year-over-year growth
- Annual 2025 revenue climbed to $602 million, a 38% increase from $436 million in 2024
- Company backlog surged 73% to reach $1.85 billion
- Shares declined 0.44% in after-hours trading despite impressive financial performance
- Revenue forecast for Q1 2026 ranges between $185 million and $200 million
Rocket Lab USA delivered exceptional financial performance throughout 2025, marking its best year ever, yet investors responded with selling pressure in extended trading.
The space technology company generated $180 million in fourth-quarter revenue, reflecting a robust 36% increase compared to the same period in 2024. Annual revenue totaled $602 million, climbing 38% from the previous year’s $436 million.
Investor sentiment remained cautious, however, with RKLB declining 0.44% to $69.89 in after-hours trading. The stock had already retreated 5.13% during the preceding week.
The company’s financial trajectory shows remarkable expansion since its Nasdaq debut in 2021, achieving a tenfold revenue multiplication with a compound annual growth rate exceeding 76%.
Profitability metrics demonstrated positive momentum. The company’s GAAP gross margin for the fourth quarter reached 38%, climbing 100 basis points from the previous quarter. Non-GAAP gross margin improved to 44.3%, advancing 240 basis points sequentially.
The company posted a GAAP EPS loss of $0.09 for the quarter, a factor that may have tempered market enthusiasm despite otherwise strong operational results.
Contract Pipeline and Backlog Expansion
The most compelling metric from the earnings release was the company’s expanding backlog. Total contracted backlog increased 73% year-over-year to $1.85 billion, with approximately 37% expected to convert to revenue over the next twelve months.
Rocket Lab announced an $816 million contract win from the Space Development Agency for 18 satellites, significantly strengthening its future revenue visibility.
The company also finalized its acquisition of Optical Support during this period, broadening its technological capabilities and service offerings.
Neutron Development and Forward Guidance
Management emphasized continued investment in the Neutron rocket program as a strategic priority. Neutron represents the company’s next-generation reusable launch vehicle currently under development.
For the first quarter of 2026, management projects revenue between $185 million and $200 million. Wall Street analysts forecast full-year 2026 revenue of $885.46 million.
Despite recent weakness, the stock has climbed 242% over the trailing twelve months and gained 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 flagged valuation concerns, suggesting the stock trades above fundamental fair value estimates, which may explain why exceptional results failed to trigger a positive price reaction.
Key risks identified for the company 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.
Investors tracking the stock will focus on the company’s ability to deliver on its Q1 2026 revenue guidance of $185 million to $200 million as the next key performance indicator.
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