Key Takeaways
- Rocket Lab (RKLB) generated fourth-quarter 2025 revenue of $180 million, up 36% year-over-year
- Full-year 2025 revenue hit $602 million, a 38% increase from 2024’s $436 million
- Order backlog surged 73% to $1.85 billion
- Stock fell 0.44% in after-hours trading despite strong revenue numbers
- Q1 2026 revenue guidance set at $185 million to $200 million
Rocket Lab USA posted exceptional financial results for 2025, though the market response proved surprisingly muted as shares dipped in extended trading.
The aerospace company generated fourth-quarter 2025 revenue of $180 million, a 36% jump versus the comparable period last year. For the full year, revenue reached $602 million, up 38% from $436 million in 2024.
Despite these impressive numbers, RKLB stock declined 0.44% in after-hours trading to $69.89. The share price had already dropped 5.13% in the week leading up to the earnings release.
The results underscore a tenfold revenue increase since the company went public on Nasdaq in 2021, translating to a compound annual growth rate surpassing 76%.
Profitability indicators showed encouraging progress. Fourth-quarter GAAP gross margin reached 38%, improving by 100 basis points from the prior quarter. The non-GAAP gross margin achieved 44.3%, up 240 basis points sequentially.
Nevertheless, the company recorded a GAAP EPS loss of $0.09 in Q4, a factor that likely influenced investor sentiment.
Growing Order Book and Major Contracts
The earnings announcement showcased impressive expansion in customer commitments. The total order backlog jumped 73% year-over-year to reach $1.85 billion, with management expecting to deliver 37% of that volume over the next year.
Rocket Lab secured an $816 million contract from the Space Development Agency to build 18 satellites, significantly boosting future revenue visibility.
The quarter also marked the finalization of the Optical Support acquisition, expanding the company’s capabilities.
Neutron Development and Forward Guidance
Executives highlighted ongoing investment in Neutron, the company’s upcoming reusable rocket system, as a core strategic priority. The Neutron platform remains in active development as the firm’s next-generation launch solution.
For the first quarter of 2026, management forecasts revenue between $185 million and $200 million. Analysts currently expect full-year 2026 revenue of $885.46 million.
The stock has surged 242% over the past year and gained 51% in the last six months, though recent sessions have shown weakness.
As of the earnings announcement, Rocket Lab maintained a market capitalization near $38.63 billion.
Several analysts have suggested the stock appears overvalued relative to fundamental metrics, which may explain why strong operational results didn’t trigger an upward price movement.
Identified risks include potential supply chain disruptions, growing competition in the commercial space launch market, and uncertain macroeconomic conditions.
Current market valuation places the company at approximately $37.37 billion in total capitalization.
The company’s Q1 2026 revenue projection of $185 million to $200 million will serve as the next critical benchmark for investors tracking the stock’s performance.
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