TLDR
- Rocket Lab posted a Q3 loss of 3 cents per share on $155 million revenue, crushing analyst estimates of a 10-cent loss on $151.8 million sales.
- The space company achieved a record 37% gross margin and locked in 17 new Electron launch contracts.
- Q4 revenue guidance of $170-$180 million topped the $172 million Wall Street consensus.
- Shares surged 6.7% after hours to $55.37, extending year-to-date gains past 100%.
- Rocket Lab completed a $325 million Geost acquisition and maintains over $1 billion in liquidity.
Rocket Lab shares jumped 6.7% in after-hours trading Monday after the space launch company crushed third-quarter expectations. The stock climbed to $55.37 following the earnings release.
The company reported a 3-cent per share loss on revenue of $155 million. Analysts had expected a 10-cent loss on $151.8 million in sales. Revenue came in at the top of management’s guidance range of $145-$155 million.
Year-over-year revenue grew 48% from $104.8 million. The dual beat triggered heavy buying in extended trading. Volume jumped to three times normal after-hours levels.
Margin Performance Drives Optimism
Rocket Lab achieved a 37% gross margin in Q3. That marks the highest margin in company history and an improvement from 33% in Q2.
The expanding margins show the Electron rocket business is becoming more profitable per launch. Management secured 17 Electron launch contracts during the quarter, setting a company record. The backlog now totals 49 launches.
CEO Peter Beck said the company delivered record revenue at record gross margins. He noted a new annual launch record is approaching. Rocket Lab has launched 14 rockets in 2025, matching the full 2024 total.
Management expects gross margins between 37-39% in Q4 on a GAAP basis. The sustained margin guidance suggests the Q3 performance wasn’t a one-time event.
Strong Q4 Outlook and Balance Sheet
Rocket Lab guided fourth-quarter revenue between $170-$180 million. That range tops the Wall Street consensus of $172 million and implies 13% sequential growth.
The EBITDA outlook shows continued losses. Management projects a Q4 EBITDA loss of $23-$29 million versus the $13 million loss analysts expected.
Q3 net loss came in at $18.26 million with an operating loss of $58.97 million. The company holds $807.88 million in cash and over $1 billion in total liquidity.
Rocket Lab completed the $325 million acquisition of Geost during the quarter. The deal adds electrooptical and infrared sensor capabilities for defense programs.
Launch Schedule and Valuation
The Neutron medium-lift rocket is scheduled for first launch in Q1 2026. That vehicle targets larger satellite constellation missions. Electron remains the primary revenue driver for now.
Shares have climbed over 100% year to date. The rally has pushed valuations higher across the space sector as investors bet on increased government reliance on commercial launch providers.
Wall Street projects 2027 EBITDA around $172 million, down from $225 million estimated at the start of 2025. Rocket Lab now trades at roughly 170 times estimated 2027 EBITDA versus 56 times in January.
The company’s Space Systems business continues growing alongside launch services. The contract backlog points to sustained demand across both segments through 2026.
The post Rocket Lab (RKLB) Stock: Earnings Beat Sends Shares Higher on Record Margins appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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