Rocket Lab — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported record quarterly revenue of $268 million for Q3 2026, a 73% year-over-year increase compared to $155.1 million in Q3 2025.
• Total revenues for the nine months ended September 30, 2026, reached $702.2 million, up from $422.1 million in the same period in 2025.
• Achieved positive GAAP operating cash flow of $7.2 million in Q3 2026.
• Recorded a net loss of $79.7 million for Q3 2026, compared to a net loss of $18.3 million in Q3 2025; net loss for the nine months ended September 30, 2026, was $174.0 million versus $145.3 million in 2025.
• GAAP gross profit was $90.1 million in Q3 2026 (33.6% margin) compared to $57.3 million (37.0% margin) in Q3 2025; Non-GAAP gross margin was 38.4% in Q3 2026 versus 41.9% in Q3 2025.
• Operating expenses totaled $169.3 million in Q3 2026, up from $116.3 million in Q3 2025.
• Cash and cash equivalents increased to $4.45 billion as of September 30, 2026, from $828.7 million as of December 31, 2025.
• Total assets grew to $6.57 billion as of September 30, 2026, from $2.32 billion as of December 31, 2025.
• Total liabilities were $766.1 million as of September 30, 2026, compared to $602.6 million as of December 31, 2025.
• Stockholders' equity increased to $5.80 billion as of September 30, 2026, from $1.72 billion as of December 31, 2025.
• Net cash provided by financing activities for the nine months ended September 30, 2026, was $3.86 billion, primarily driven by $3.91 billion in proceeds from ATM equity offerings.

Guidance and Future Outlook:

• Guidance for Q4 2026 revenue is between $270 million and $290 million.
• GAAP Gross Margins for Q4 2026 are expected to be between 34% and 36%; Non-GAAP Gross Margins are expected to be between 39% and 41%.
• GAAP Operating Expenses for Q4 2026 are projected between $162 million and $168 million; Non-GAAP Operating Expenses are projected between $136 million and $142 million.
• Interest Income net is expected to be $45 million in Q4 2026.
• Adjusted EBITDA loss for Q4 2026 is expected to be between $14 million and $20 million.
• Basic Weighted Average Common Shares Outstanding for Q4 2026 is expected to be 681 million.
• Stock-based compensation is expected to range from $17 million to $19 million in Q4 2026.
• First launch of the Neutron rocket is now targeted for no earlier than 2027.

Business Segments and Product Lines:

• Record backlog of approximately $3.6 billion, representing a 52% sequential increase from Q2 2026.
• Approximately $1 billion in new launch contracts signed in Q3 2026 across Electron, HASTE, and Neutron, bringing the total launch backlog to 117 launches.
• Secured over $515 million in Neutron launch contracts from constellation operators in Q3, growing the rocket's backlog to 16 missions ahead of its debut.
• Base launch price for several Neutron missions lifted to $70 million due to tightening industry launch capacity.
• Space Systems backlog grew by $470 million in Q3 2026.
• Twelve Rocket Lab-built spacecraft successfully launched to orbit and are now operating, including eight satellite platforms for Globalstar, twin spacecraft for NASA's Mars science mission, the VICTUS HAZE mission for the U.S. Space Force, and a spacecraft for Viasat's NASA Communications Services Depot.
• More than 55 spacecraft are currently in development and build across production complexes for NASA, the Space Development Agency, USSF, and commercial operators.
• Product revenues were $197.5 million and service revenues were $70.3 million in Q3 2026.

Market and Competitive Landscape:

• Industry launch capacity is tightening, contributing to increased base launch prices for Neutron missions.
• The company's end-to-end space strategy is gaining traction, with critical and ambitious missions increasingly relying on Rocket Lab for launch, spacecraft, and components.
• Rocket Lab has powered more than 1,700 missions in Earth orbit and deep-space exploration of the Moon, Mars, and beyond.

Risks and Challenges:

• Forward-looking statements regarding financial results, launch schedules, Neutron development, and the Iridium acquisition involve known and unknown risks, uncertainties, and factors that could cause actual results to differ materially from expectations.
• Specific risks include delays in launch windows, Neutron development milestones, operational expansion, and the anticipated benefits of the Iridium acquisition.
• Stock-based compensation and its related tax effects are significant variables that make predicting forward-looking Non-GAAP measures difficult.

Management Commentary and Tone:

• CEO Sir Peter Beck described Q3 2026 as a "defining quarter" for the company.
• Management stated that the end-to-end space strategy is "delivering exactly as designed," with every part of the business growing.
• The tone indicates high confidence in the company's growth trajectory, record backlog, and the execution of its multi-rocket and spacecraft portfolio.

Other Key Points:

• Rocket Lab fully funded its pending acquisition of Iridium Communications through a completed ATM equity offering.
• Received approval from Iridium lenders to maintain Iridium's credit facility post-transaction.
• Obtained overwhelming approval from Iridium shareholders in favor of the acquisition.
• The company reported a loss on extinguishment of debt of $27.3 million in Q3 2026.
• Adjusted EBITDA for Q3 2026 was a loss of $18.0 million, improving from a loss of $26.3 million in Q3 2025.
• Non-GAAP operating expenses for Q3 2026 were $130.2 million, down from $130.2 million in Q3 2025 (GAAP was $169.3 million vs $116.3 million).
• Contract liabilities increased to $423.6 million as of September 30, 2026, from $195.4 million as of December 31, 2025.