Rocket Lab Q1 Earnings Call Highlights

Key Points

• Rocket Lab posted its strongest quarter ever, with Q1 revenue hitting a record $200.3 million, up 63.5% year over year, and gross margins beating guidance. The company also narrowed its loss, with adjusted EBITDA better than expected.
• Backlog and launch demand surged to about $2.2 billion, helped by a major $190 million HASTE order and a new multi-launch Neutron contract that Beck called the largest in company history. Rocket Lab said it now has more than 70 launches in backlog and remains on track for its 100th launch later this year.
• Management remains bullish on Neutron and space systems growth, while guiding Q2 revenue to $225 million to $240 million. The company also highlighted defense-related opportunities, the acquisition of Motiv Space Systems, and said it has more than $2 billion in liquidity to fund growth and development.

Rocket Lab NASDAQ: RKLB reported what executives described as the strongest first quarter in the company’s history, with record revenue, gross margin, backlog, cash and launch contract activity as it continued to expand across launch services, satellite systems and national security programs.

Founder and Chief Executive Officer Sir Peter Beck said the company’s strategy is centered on becoming an end-to-end space provider, spanning launch vehicles, spacecraft, satellite subsystems and, eventually, its own space-based applications and services. “When the world's most sophisticated space organizations need mission success, they choose Rocket Lab,” Beck said.

Revenue Tops $200 Million for First Time

Chief Financial Officer Adam Spice said first-quarter 2026 revenue was $200.3 million, slightly above the high end of prior guidance and up 63.5% from a year earlier. Revenue rose nearly 12% sequentially.

Space Systems generated $136.7 million in revenue, up 57.2% year over year and 31.7% sequentially, driven primarily by increased contributions from the company’s satellite platforms business. Launch Services revenue was $63.7 million, up 78.9% year over year but down 16.1% sequentially due to fewer launches in the period.

GAAP gross margin was 38.2%, above the company’s prior guidance range of 34% to 36%. Non-GAAP gross margin was 43%, also above the prior guidance range of 39% to 41%. Spice attributed the outperformance primarily to solar products and launch, citing better-than-expected absorption and lower spending.

Rocket Lab reported a GAAP loss of $0.07 per share, compared with a loss of $0.09 per share in the fourth quarter. Adjusted EBITDA was a loss of $11.8 million, better than the company’s guidance for a $21 million to $27 million loss.

Backlog Reaches About $2.2 Billion

The company ended the quarter with approximately $2.2 billion in backlog. Spice said launch accounted for about 41.5% of backlog, while Space Systems represented 58.5%. He said Rocket Lab expects roughly 36% of its current backlog to convert into revenue over the next 12 months.

Beck said Rocket Lab booked 31 Electron and HASTE missions during the quarter, the most it has ever signed in a single quarter. The company now has more than 70 launches in backlog across Electron and HASTE. Beck said Rocket Lab has completed eight missions so far this year and is on track to surpass last year’s launch record, as well as reach its 100th launch later this year.

A major contributor to the launch backlog was a $190 million, 20-launch HASTE order through Kratos and the Department of War’s MACH-TB program. Beck said the order was the largest single order the company has seen within the program and said HASTE now represents almost one-third of Rocket Lab’s launch backlog.

Rocket Lab also announced that Anduril booked three dedicated HASTE launches, with the first scheduled no earlier than November. Beck said the partnership brings together two defense-focused prime contractors to support technology development for the Department of War.

Neutron Signs Largest Contract in Company History

Beck said Rocket Lab signed a new multi-launch contract for Neutron that represents the largest contract in the company’s history. The agreement covers five dedicated Neutron flights and three Electron launches between now and 2029 for a confidential customer.

Beck said pricing for the Neutron and Electron launches is “very much in family” with Rocket Lab’s commercial rates, adding that the company is not discounting Neutron flights to fill its manifest. During the question-and-answer session, Beck said Neutron demand is “not one” of the things he worries about and said the company wants to ensure it preserves capacity for other customers.

The company said Neutron remains on an aggressive schedule toward a first launch later this year. Beck highlighted progress on Stage 1 tank work, stage separation testing, the Archimedes engines, Stage 2 integration and the reusable “Hungry Hippo” fairing system. He also discussed work on the Neutron landing barge, named Return On Investment, which is expected to begin sea trials later this year.

In response to an analyst question, Beck said Rocket Lab plans to attempt a reentry and soft splashdown on Neutron’s first flight. If the company is satisfied with the results, it would then attempt a barge landing on flight two.

Space Systems Expands Through Defense Work and Acquisitions

Rocket Lab said it has been selected with Raytheon to demonstrate advanced capabilities for the Space-Based Interceptor program under Golden Dome. Spice said there is limited detail the company can provide, but described the program as a potentially large opportunity with procurement gates still ahead.

The company also announced a definitive agreement to acquire Motiv Space Systems, a California-based company focused on space robotics, motion control systems and spacecraft mechanisms. Beck said Motiv’s technology has been used on NASA’s CADRE lunar rover and Mars Perseverance rover, including Perseverance’s robotic arm and camera mechanisms.

Beck said the acquisition would bring additional spacecraft mechanisms in-house, including solar array drive assemblies, antenna and propulsion gimbals, filter wheels, focus mechanisms and precision drive electronics. In the Q&A session, he said Motiv also gives Rocket Lab capabilities relevant to on-orbit rendezvous, docking and spacecraft servicing.

Rocket Lab also discussed its electric propulsion thruster for satellites, which Beck said has a 200-unit production line established and has already delivered units for the company’s own constellation programs. He said the company has received inquiries from programs needing hundreds of units.

Second-Quarter Guidance Calls for Further Revenue Growth

For the second quarter of 2026, Rocket Lab guided for revenue of $225 million to $240 million, representing 16% quarter-over-quarter growth at the midpoint. The company expects GAAP gross margin of 33% to 35% and non-GAAP gross margin of 38% to 40%.

Rocket Lab forecast GAAP operating expenses of $138 million to $144 million and non-GAAP operating expenses of $120 million to $126 million. Spice said the expected increase is primarily driven by the Mynaric acquisition and ongoing Neutron development spending related to Flight 1, including staff costs, prototyping and materials.

The company ended the quarter with approximately $1.48 billion in cash equivalents, restricted cash and marketable securities. Spice said Rocket Lab now has access to more than $2 billion in liquidity, supported by recent equity raises and other financing arrangements. He said the funds are intended to support acquisitions, general corporate expenditures and working capital.

Spice said negative free cash flow is expected to remain elevated as Rocket Lab invests in Neutron development, production scaling and infrastructure expansion. He said the company’s longer-term financial progress will depend heavily on Neutron’s first flight, the transition into production and the eventual scaling of a reusable fleet.

About Rocket Lab NASDAQ: RKLB

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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