Rocket Lab Stock Falls as Q2 Revenue Climbs 62% to Record $234 Million and Backlog Hits $2.36 Billion
Key Takeaways
- •Rocket Lab achieved record quarterly revenue of $234 million in Q2, representing a 62% year-over-year increase driven by growth across launch services and space systems.
- •The company's backlog reached $2.36 billion, climbing 137% from the same period last year and encompassing over 90 launch missions, the highest in company history.
- •Rocket Lab announced an agreement to acquire Iridium Communications, significantly expanding its business model to encompass satellite-based voice and data communications services.
- •Third-quarter revenue guidance of $250 million to $265 million indicates continued sequential growth beyond the record second-quarter results.
- •Shares fell 2.22% to $78.26 despite the strong financial performance, as profit-taking followed a significant year-to-date rally that had priced in elevated growth expectations.
Rocket Lab Corporation (RKLB) traded at $78.26, down 2.22%, despite reporting record second-quarter revenue and backlog. The stock briefly moved above $80 during Tuesday trading before pulling back. The decline came even as the results underscored Rocket Lab's position as the second most active US orbital launch provider by cadence, behind only SpaceX, and one of the few publicly traded companies generating meaningful revenue across both launch services and spacecraft manufacturing.
Record Q2 Revenue Reaches $234 Million
Rocket Lab reported record quarterly revenue of $234 million in the second quarter, up 62% from the same period last year. Revenue also increased by $34 million from the previous quarter, reflecting stronger activity across the company's launch services and space systems businesses.
The company ended the quarter with a record backlog of $2.36 billion. That total rose 137% year over year and improved future revenue visibility across several business lines. Rocket Lab also secured more than $1 billion in new third-quarter contracts, including agreements signed after the quarter ended.
Launch demand remained a key growth driver during and after the period. Rocket Lab secured more than $437 million in Electron, HASTE, and Neutron launch contracts. Those agreements lifted its total launch backlog above 90 missions, the highest level in company history. Electron, Rocket Lab's operational small-lift vehicle, has been flying since 2018 and has conducted dozens of orbital launches, establishing a flight track record that underpins the company's ability to win repeat government and commercial customers.
Neutron Progress and New Deals Expand the Business
During the quarter, Rocket Lab advanced Neutron hardware through assembly, integration, and testing. The company is targeting delivery of Neutron to the launch pad in the fourth quarter of 2026. Rocket Lab said Neutron will expand its reach into larger commercial and government missions. Neutron is designed as a reusable medium-lift rocket intended to serve a market segment currently dominated by SpaceX's Falcon 9, and its successful entry into service would significantly broaden Rocket Lab's addressable launch market.
The company also completed the acquisitions of Mynaric and Motiv during the period. Rocket Lab later announced an agreement to acquire Iridium Communications, a move intended to expand its communications business. The planned transaction would combine launch, spacecraft production, satellite operations, and communications services. Iridium operates a constellation of 66 low Earth orbit satellites providing global voice and data communications, and the deal represents a significant expansion of Rocket Lab's business model beyond its launch and space systems roots.
Rocket Lab also expanded its government business through defense and satellite contracts. The company secured Space Force work covering surveillance, geostationary satellites, and national security missions. In addition, Rocket Lab formed Rocket Lab Germany GmbH to support future manufacturing and European customer demand.
Q3 Guidance Calls for Higher Revenue
Rocket Lab expects third-quarter revenue between $250 million and $265 million, pointing to another sequential increase after the record second quarter. Management also expects GAAP gross margins between 29% and 31%.
The company projected non-GAAP gross margins between 35% and 37%. Rocket Lab expects GAAP operating expenses between $143 million and $149 million, while non-GAAP operating expenses are forecast to range from $121 million to $127 million.
Rocket Lab expects an adjusted EBITDA loss between $17 million and $23 million in the third quarter. The company also forecast $21 million in net interest income for the period.
Despite the record growth, the share price declined, showing that strong results did not prevent short-term selling pressure. The pullback followed a substantial year-to-date rally, as Rocket Lab's stock has been among the most actively traded names in the space sector, with valuation reflecting high growth expectations that leave the stock sensitive to profit-taking even on positive news.
