Rocket Lab Corp.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 26 February 2026: press release. Guidance figures: 10 new. The quarter’s numbers.

Read the filing

Key takeaways

• Record fourth-quarter and full-year revenue: Fourth-quarter revenue was $179.7 million, against $132.4 million a year earlier. Full-year revenue was $601.8 million, against $436.2 million, which the company describes as 38% growth. Source
• Launch cadence set new records: Seven Electron launches flew in Q4, a quarterly record, and 21 Electron launches flew in 2025, a new annual record, with 100% mission success. Source
• Largest single contract to date: An $816 million Space Development Agency contract covers design and manufacture of 18 satellites for the Tracking Layer Tranche 3 program, described as the largest single contract the company has been awarded. Source
• Neutron schedule updated after test failure: The schedule was updated after a stage 1 tank test failure. The previous release had the rocket arriving at Launch Complex 3 in Q1 2026, with first launch after that. Source
• Non-GAAP gross margin rose sharply: Non-GAAP gross margin was 44.3% in the quarter, against 34.0% a year earlier, and 39.7% for the full year, against 32.0%. Source
• Backlog reached $1.85 billion: Year-end backlog was $1.85 billion, up 73% year on year. The CEO said the company looks forward to building on that figure in 2026. Source
• At-the-market equity program raised cash: At-the-market offerings raised $1,146.1 million in 2025, less $26.5 million of issuance costs. Cash and cash equivalents rose to $828.7 million from $271.0 million. Source

“2026 was a record-breaking year for Rocket Lab financially and operationally.”

Sir Peter Beck, Rocket Lab founder and CEO

Guidance

What changed from last quarter

• New guidance: Ranges given for Q1 2026 on revenue, margins, operating expenses, interest income, Adjusted EBITDA loss, share count and stock-based compensation. Source
• New guidance: A first-launch date for Neutron was given; the previous release gave an arrival date at Launch Complex 3 in Q1 2026. Source
• New: Acquisition of Optical Support Inc., a maker of custom optical and optomechanical instruments. Source
• New: Acquisition of Precision Components Limited, adding high-volume precision manufacturing capability. Source
• New: Space Development Agency prime contract of $816 million to design and build 18 spacecraft. Source
• New: Selection by the Missile Defense Agency for the SHIELD program, with a stated program total of $151 billion. Source

Results and growth drivers

• Record fourth-quarter and full-year revenue: Fourth-quarter revenue was $179.7 million, against $132.4 million a year earlier. Full-year revenue was $601.8 million, against $436.2 million, which the company describes as 38% growth. Source
• Net loss per share in both periods: Net loss was $52.9 million, or $(0.09) per share, against $52.3 million, or $(0.10), a year earlier. The full-year net loss was $198.2 million, or $(0.37) per share, against $190.2 million. Source
• Adjusted EBITDA loss compared year on year: Adjusted EBITDA loss was $17.4 million in the quarter, against $23.2 million a year earlier. The full-year Adjusted EBITDA loss was $101.2 million, against $96.9 million. Source

Product and service revenue mix

• Service revenue grew sharply in Q4: Service revenues were $85.6 million in the quarter, against $48.4 million a year earlier, and the larger contributor to the quarter's revenue increase. Source
• Product revenue rose in Q4: Product revenues were $94.0 million in the quarter, against $84.0 million a year earlier. Source
• Full-year service revenue rose: Full-year service revenues were $230.2 million, against $146.4 million, and full-year product revenues were $371.6 million, against $289.9 million. Source

“We delivered record quarterly revenue of $180 million, which brought our full year revenue to a record $602 million, representing 38% growth year on year.”

Sir Peter Beck, Rocket Lab founder and CEO

Launches, programs and spacecraft

• Launch cadence set new records: Seven Electron launches flew in Q4, a quarterly record, and 21 Electron launches flew in 2025, a new annual record, with 100% mission success. Source
• HASTE hypersonic test launches: Three 2025 launches were HASTE flights, which the company says deliver hypersonic suborbital test capability, a key priority for the Department of War supporting initiatives such as Golden Dome. Source
• Largest single contract to date: An $816 million Space Development Agency contract covers design and manufacture of 18 satellites for the Tracking Layer Tranche 3 program, described as the largest single contract the company has been awarded. Source
• ESCAPADE Mars spacecraft launched: Two spacecraft designed, built and operated by the company were launched for NASA and UC Berkeley's ESCAPADE mission to Mars. LOXSAT production was also completed. Source

Neutron development and schedule

• Neutron schedule updated after test failure: The schedule was updated after a stage 1 tank test failure. The previous release had the rocket arriving at Launch Complex 3 in Q1 2026, with first launch after that. Source
• Thrust structure qualification completed: Qualification of the Neutron thrust structure was completed, and the interstage entered qualification. The company describes both as critical development milestones. Source
• Neutron positioned for medium launch: The company describes Neutron as a medium-lift launch vehicle in development that will serve constellation deployment, national security and exploration missions. Source

“We ended the year with a record $1.85 billion in backlog, representing 73% year-on-year growth, a figure we look forward to building upon in 2026.”

Sir Peter Beck, Rocket Lab founder and CEO

Costs, margins and operating expenses

• Non-GAAP gross margin rose sharply: Non-GAAP gross margin was 44.3% in the quarter, against 34.0% a year earlier, and 39.7% for the full year, against 32.0%. Source
• GAAP gross profit increased: GAAP gross profit was $68.2 million in the quarter, against $36.8 million, and $207.2 million for the year, against $116.1 million. Source
• Research and development spending rose: GAAP research and development, net, was $78.8 million in the quarter, against $48.3 million. Non-GAAP research and development was $72.8 million, against $46.1 million. Source
• Non-GAAP operating expenses against prior guidance: Non-GAAP operating expenses were $104.5 million, against $74.5 million a year earlier, and below the $107 million to $113 million range given in the previous release. Source
• Non-GAAP operating loss narrowed: Non-GAAP operating loss was $24.9 million in the quarter, against $29.5 million, and $127.4 million for the full year, against $118.4 million. Source
• Stock-based compensation increased: Stock-based compensation expense was $18.2 million in the quarter and $71.1 million for the year, against $56.8 million a year earlier. Source

Demand and order book

• Backlog reached $1.85 billion: Year-end backlog was $1.85 billion, up 73% year on year. The CEO said the company looks forward to building on that figure in 2026. Source
• Selected for SHIELD defense program: The Missile Defense Agency selected Rocket Lab for the SHIELD program, positioning it to compete for future launch and space systems contracts with a stated total of $151 billion. Source
• More than 30 launch contracts signed: Over 30 new launch contracts were signed in 2025, with customers in U.S. national defense and security, commercial constellations, and new and returning customers. Source
• Contract liabilities declined: Contract liabilities were $195.4 million at year end, against $216.2 million a year earlier. Source

Cash, capital and equity raising

• At-the-market equity program raised cash: At-the-market offerings raised $1,146.1 million in 2025, less $26.5 million of issuance costs. Cash and cash equivalents rose to $828.7 million from $271.0 million. Source
• Operating cash outflow widened: Net cash used in operating activities was $165.5 million for the year, against $48.9 million a year earlier. Source
• Capital spending and acquisition cash: Purchases of property, equipment and software were $156.3 million for the year, against $67.1 million. Cash paid for business combinations and asset acquisitions was $132.4 million. Source
• Convertible notes and borrowings reduced: Convertible senior notes, net, fell to $152.4 million from $345.4 million. Long-term borrowings, net, fell to $1.7 million from $44.0 million. Source
• Series A preferred shares outstanding: 45,951,250 preferred shares were issued and outstanding at year end, against none a year earlier. Source

Acquisitions and vertical integration

• Optical instrument maker acquired: Optical Support Inc. is described as a leader in custom, high-precision optical instruments. The company calls the deal the latest step in its vertical integration strategy. Source
• Precision manufacturing business acquired: Precision Components Limited was acquired to expand the company's high-volume precision manufacturing capabilities. Source
• Goodwill and intangibles rose: Goodwill was $205.8 million, against $71.0 million, and intangible assets were $224.7 million, against $58.6 million. Business combinations used $132.4 million of cash. Source
• Silicon solar arrays for orbital data centers: The company introduced new advanced silicon solar arrays for gigawatt-scale space-based data centers, which it describes as spanning kilometers in orbit. Source

Coming up, as management said on 26 February 2026

• Neutron fairing moves to integration testing: The Hungry Hippo fairing was qualified and delivered to the Virginia Assembly and Integration Complex, ready for final integration and end-to-end systems testing. Source
• Q1 2026 ranges are next guidance: The Q1 2026 ranges are the next guidance management gave; the release does not date the Q1 2026 report. Source

Figures management reported

Risks management discussed

• Operational: A stage 1 tank test failure led management to update the Neutron development schedule, with first launch now targeted for Q4 2026. Source

Earlier plans management reported on

• Not stated: Earlier schedule given in the previous release. The current release says the schedule was updated.

Other quarters

• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.