Rocket Lab (RKLB) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $122.6 million, up 32% year-over-year, driven by strong performance in both launch and space systems, with five successful Electron launches and robust contract wins.

• Neutron selected for the $5.6 billion NSSL Phase 3 Lane 1 program and awarded a $5 million mission assurance task order, with development progressing and first flight targeted for H2 2025.

• Announced intent to acquire Mynaric, expanding into European markets and strengthening satellite communications and optical communications capabilities.

• Corporate restructuring to establish Rocket Lab Corporation as a new holding company, with no impact on operations or trading.

• Expanded product offerings with modular solar arrays, next-gen satellite software, and radios, supporting new constellation opportunities.

Financial highlights

• Q1 2025 revenue: $122.6 million, up 32.1% year-over-year, but down 7.4% sequentially due to lower launch ASP and program mix shift.

• Launch services revenue: $35.6 million (+9% YoY); space systems revenue: $87 million (+45% YoY).

• GAAP gross margin: 28.8% (up from 26.1% YoY); non-GAAP gross margin: 33.4% (up from 31.7%).

• Adjusted EBITDA loss: $30 million; net loss: $60.6 million, or $0.12 per share.

• Cash, equivalents, and marketable securities: $517 million at quarter end, including $92.8 million raised via equity offering.

Outlook and guidance

• Q2 2025 revenue expected between $130 million and $140 million, with sequential and year-over-year growth in both segments.

• GAAP gross margin guidance: 30%-32%; non-GAAP: 34%-36%.

• Q2 adjusted EBITDA loss expected between $28 million and $30 million.

• Negative non-GAAP free cash flow to remain elevated ($40 million-$80 million) due to Neutron investments.

• Sufficient liquidity to meet working capital and capital expenditure needs for at least the next 12 months.