Rocket Lab (NASDAQ:RKLB) Releases Quarterly Earnings Results, Meets Estimates

Key Points

• Rocket Lab met earnings expectations with Q1 EPS of -$0.07, while revenue came in at $200.35 million, ahead of estimates and up 63.4% year over year.
• The company reported strong operating momentum, including a record backlog above $2 billion and major contract wins, such as a 20-launch HASTE order and five Neutron flights.
• Despite growth, Rocket Lab is still burning cash, with negative free cash flow of $77.4 million in the quarter and management expecting continued FCF losses as Neutron development and other investments continue.

Rocket Lab (NASDAQ:RKLB - Get Free Report) released its quarterly earnings results on Thursday. The rocket manufacturer reported ($0.07) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.07), FiscalAI reports. Rocket Lab had a negative net margin of 32.94% and a negative return on equity of 19.01%. The business had revenue of $200.35 million for the quarter, compared to the consensus estimate of $189.65 million. During the same quarter last year, the firm earned ($0.12) EPS. Rocket Lab's revenue for the quarter was up 63.4% on a year-over-year basis.

Here are the key takeaways from Rocket Lab's conference call:

• Record Q1 performance — revenue topped $200.3 million (+63% YoY), GAAP gross margin was 38.2%, backlog exceeded $2 billion, and cash on hand was $1.48 billion with >$2 billion in total liquidity.
• Strong launch momentum — Rocket Lab booked a record 31 Electron/HASTE missions, a $190M 20‑launch HASTE order, and five Neutron flights (its largest contract), driving a record launch backlog and robust customer demand.
• Neutron development advancing — tank refinements, stage‑separation tests, Archimedes engine hot fires, and the large landing barge are progressing toward a first launch later this year, but outcomes hinge on remaining qualification and flight tests.
• Accelerating vertical integration — acquisitions (Motiv, Mynaric), the in‑house Gauss electric thruster production line, and expanded European footprint should broaden TAM, reduce supply risk, and improve cost/control on satellite subsystems.
• Elevated cash burn and capex — Q1 non‑GAAP free cash flow was a use of $77.4 million (GAAP operating cash flow used $50.3 million), and management expects continued negative FCF as Neutron and program investments scale.

Rocket Lab Stock Performance

NASDAQ:RKLB traded up $26.73 during mid-day trading on Friday, hitting $105.31. 79,372,448 shares of the company's stock traded hands, compared to its average volume of 23,014,510. The firm has a 50 day moving average of $72.88 and a two-hundred day moving average of $68.50. Rocket Lab has a 12 month low of $20.23 and a 12 month high of $105.62. The firm has a market capitalization of $59.96 billion, a price-to-earnings ratio of -284.61 and a beta of 2.30. The company has a current ratio of 4.08, a quick ratio of 3.61 and a debt-to-equity ratio of 0.10.

More Rocket Lab News

Here are the key news stories impacting Rocket Lab this week:

• Positive Sentiment: Rocket Lab posted record Q1 revenue of about $200.3 million, topping estimates and rising roughly 63% year over year, while EPS came in line with expectations. Rocket Lab Corporation (RKLB) Reports Q1 Loss, Beats Revenue Estimates
• Positive Sentiment: The company raised second-quarter revenue guidance to $225 million-$240 million, above Wall Street forecasts, signaling continued momentum into the rest of 2026. Rocket Lab Announces First Quarter 2026 Financial Results
• Positive Sentiment: Rocket Lab signed the largest launch contract in its history, including multiple Neutron and Electron missions for a confidential customer, which expands its backlog and improves revenue visibility. Rocket Lab’s Biggest Launch Deal Yet
• Positive Sentiment: Additional defense-related wins, including a $30 million HASTE hypersonic launch contract with Anduril and a Space Force demonstration with Raytheon, reinforce demand for Rocket Lab’s launch and space-systems capabilities. Rocket Lab Awarded $30 Million Contract for HASTE Hypersonic Rocket Launches for Anduril
• Positive Sentiment: Rocket Lab said it ended the quarter with a record backlog of about $2.2 billion, suggesting strong future demand and supporting the case that the company may move closer to profitability. Rocket Lab's stock rises upon new signs its business is expanding rapidly
• Neutral Sentiment: Brokerage firms lifted price targets and one firm upgraded the stock, but several targets still sit below the current share price, making the analyst signal supportive but mixed. Benzinga analyst update

Insider Buying and Selling

In other Rocket Lab news, insider Frank Klein sold 44,482 shares of Rocket Lab stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $69.59, for a total value of $3,095,502.38. Following the transaction, the insider directly owned 1,125,005 shares of the company's stock, valued at $78,289,097.95. The trade was a 3.80% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Merline Saintil sold 18,126 shares of the stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $75.04, for a total value of $1,360,175.04. Following the completion of the sale, the director directly owned 261,903 shares of the company's stock, valued at $19,653,201.12. This represents a 6.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 233,449 shares of company stock worth $16,487,233. 8.40% of the stock is currently owned by company insiders.

Institutional Trading of Rocket Lab

Several hedge funds and other institutional investors have recently bought and sold shares of RKLB. Mcguire Capital Advisors Inc. bought a new position in shares of Rocket Lab during the 4th quarter worth about $27,000. Zions Bancorporation National Association UT acquired a new position in shares of Rocket Lab during the fourth quarter valued at about $28,000. Ankerstar Wealth LLC bought a new stake in shares of Rocket Lab in the fourth quarter valued at about $31,000. Ameriflex Group Inc. bought a new stake in shares of Rocket Lab in the fourth quarter valued at about $38,000. Finally, Parkside Financial Bank & Trust grew its position in Rocket Lab by 96.0% during the fourth quarter. Parkside Financial Bank & Trust now owns 692 shares of the rocket manufacturer's stock worth $48,000 after buying an additional 339 shares in the last quarter. 71.78% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

RKLB has been the topic of several analyst reports. The Goldman Sachs Group increased their target price on shares of Rocket Lab from $47.00 to $69.00 and gave the stock a "neutral" rating in a research report on Tuesday, January 20th. TD Cowen upped their price target on Rocket Lab from $90.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday. Citigroup reissued an "outperform" rating on shares of Rocket Lab in a report on Friday. Roth Mkm upped their target price on Rocket Lab from $90.00 to $100.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Finally, Clear Str upgraded Rocket Lab to a "strong-buy" rating in a report on Wednesday, March 18th. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Rocket Lab presently has an average rating of "Moderate Buy" and an average price target of $90.00.

About Rocket Lab

Rocket Lab is an aerospace company that provides launch services, spacecraft, and space systems for commercial and government customers. The company's primary launch vehicle is Electron, a small-lift orbital rocket designed to deploy small satellites and rideshare payloads to low Earth orbit. Rocket Lab also develops and manufactures the Rutherford engine, noted for its electric-pump-fed design and additive-manufactured components, which powers Electron and supports the company's propulsion capabilities.

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