Published: November 11, 2025
Rocket Lab shares are rallying into Tuesday after the space company posted record third‑quarter revenue, a sharp year‑over‑year margin jump, and fresh milestones on its next‑gen Neutron rocket. The stock rose more than 8% in after‑hours trading Monday and gained about 9% pre‑market Tuesday as investors digested the beat‑and‑raise update and a clearer 2026 path for Neutron. 1
What happened
Rocket Lab reported Q3 2025 revenue of $155.1 million, up 48% year over year, with a GAAP gross margin of 37% and a net loss of $0.03 per share—narrower than last year and ahead of Wall Street expectations. Management guided Q4 2025 revenue to $170–$180 million, targeting GAAP gross margin of 37%–39% and adjusted EBITDA loss of $23–$29 million. 2
By the numbers
- Revenue: $155.1M in Q3 2025, +48% YoY. 2
- Gross margin: 37% GAAP (record). 2
- Earnings: Net loss $0.03 per share. 2
- Q4 outlook: Revenue $170M–$180M; GAAP gross margin 37%–39%; adjusted EBITDA loss $23M–$29M. 2
LSEG/Reuters tallied the revenue beat vs. an analyst consensus near $151.8M and flagged the stock’s ~9% pre‑market pop to $56.70. 3
Operations snapshot: launches, defense work, and M&A
- Launch cadence: Rocket Lab secured 17 Electron launch contracts in Q3 and remains on track for 20+ launches in 2025, setting up a new annual record. The company also completed two HASTE hypersonic test missions in the quarter. 2
- National security build‑out: The quarter included the closing of the GEOST acquisition (up to $325M) to add EO/IR payload capabilities, plus progress tied to defense demand (e.g., SDA‑aligned programs). 2
- Balance sheet: Rocket Lab ended the quarter with more than $1 billion in liquidity, aided by an at‑the‑market offering earlier this year. 2
Backlog and business mix
Management disclosed a ~$1.1 billion total backlog, split ~47% launch and ~53% space systems, indicating a balanced pipeline across rockets, spacecraft, and components. That mix matters for margins because space systems carry structurally higher gross profit than pure launch. 4
Neutron: 2026 is the new waypoint
Rocket Lab opened Launch Complex 3 (Wallops Island, VA) and updated the schedule for Neutron, its medium‑lift, partially reusable rocket. Neutron is now slated to arrive at LC‑3 in Q1 2026, with first launch thereafter pending qualification. In tandem, financial press coverage framed the next step as a “bigger launch planned for 2026,” which aligns with management’s “first launch thereafter” language. 2
Market reaction on Nov. 11, 2025
- After‑hours (Nov. 10): RKLB jumped >8% following the earnings release. 1
- Pre‑market (Nov. 11): Shares were up ~9.3% to $56.70, with Reuters citing the revenue beat, stronger near‑term guidance, and contract momentum. 3
Why it matters
Rocket Lab continues to evolve beyond “just launch.” The company’s space systems revenue base and defense‑oriented programs are expanding, while Electron maintains high cadence and HASTE opens a separate hypersonic‑testing revenue stream. With Neutron progressing toward the pad in 2026, Rocket Lab is positioning for larger‑payload missions—expanding its addressable market and potentially improving long‑term unit economics if reusability targets are met. 2
Key takeaways for investors and the industry
- Execution + scale: Record quarterly revenue and margins alongside a rising launch cadence signal operational scale benefits, especially as higher‑margin space systems grow. 2
- Backlog quality: A $1.1B backlog split across launch and space systems should support visibility into 2026 while smoothing quarter‑to‑quarter volatility typical of pure‑launch businesses. 4
- Neutron milestone clarity: Arrival at LC‑3 in Q1 2026 with first launch thereafter gives the market a cleaner milestone map; WSJ coverage underscored the 2026 frame for the first Neutron mission. 2
- Sentiment and price action: The revenue beat vs. LSEG consensus and the pre‑market jump show investors rewarding the mix of growth, margins, and pipeline updates. 3
What to watch next
- Q4 print vs. guidance: Can Rocket Lab land near the $170–$180M revenue range and sustain upper‑30s GAAP gross margin? 2
- Electron cadence: Contract conversion and launch execution as the company chases 20+ missions in 2025 and sets up 2026. 2
- Neutron readiness: Hardware qualification, engine/structures testing, and regulatory milestones toward the first flight after Q1 2026 arrival at LC‑3. 2
- Defense momentum: Integration of GEOST and follow‑on tasking in national‑security programs that value responsive launch and on‑orbit capabilities. 2
Sources (key Nov. 11, 2025 coverage and documents)
- Company press release (Q3 2025 results, guidance, Neutron timing, M&A and liquidity). 2
- WSJ live market coverage (after‑hours move; “bigger launch planned for 2026”). 1
- Reuters/LSEG via TradingView (revenue vs. consensus; pre‑market price action). 3
- Earnings‑call highlights (backlog level and mix). 4
This report is for informational purposes only and is not investment advice.
