Financial Data and Key Metrics Changes - The company reported record revenue of $144,500,000 for Q2 2025, exceeding prior guidance and reflecting a 36% year-over-year increase [5][29] - GAAP gross margin for Q2 was 32.1%, above the guidance range of 30% to 32%, while non-GAAP gross margin was 36.9%, exceeding the guidance of 34% to 36% [30] - The company ended Q2 with a total backlog of approximately $1,000,000,000, with launch backlog representing about 41% and space systems 59% [31][32] - GAAP operating expenses for Q2 were $106,000,000, above the guidance range of $96,000,000 to $98,000,000 [34] Business Line Data and Key Metrics Changes - The Space Systems segment generated $97,900,000 in revenue, a sequential increase of 12.5%, driven by contributions from satellite components [29] - The Launch Services segment delivered revenue of $56,600,000, reflecting a 31.1% quarter-on-quarter increase [29] Market Data and Key Metrics Changes - Demand for Electron launches is increasing, with multiple international space agencies signed up for launches this year and next [6][17] - The company secured its first direct launch contract with the European Space Agency for a pair of satellites [17] Company Strategy and Development Direction - The company is expanding its prime contractor status with the imminent acquisition of GEOS, enhancing its capabilities in missile tracking satellites [7][8] - The strategic focus includes supporting U.S. defense initiatives, particularly the Golden Dome program, which could be one of the largest procurements by the Department of Defense [8][10] - The company aims to leverage its vertical integration to control costs and reduce schedule risks in satellite manufacturing [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet the urgent timelines set by the U.S. administration for defense projects [11][12] - The company anticipates continued growth in revenue and backlog, particularly following the successful launch of Neutron [39][40] Other Important Information - The company is preparing for the grand opening of Launch Complex 3, which is expected to enhance operational flexibility and support national security missions [26][27] - The company reported a negative GAAP operating cash flow of $23,200,000 for Q2, an improvement from the previous quarter [36][37] Q&A Session Summary Question: Status of the Archimedes engine performance - Management indicated satisfaction with the performance of the Archimedes engine, noting the complexity of qualifying it for various operational conditions [43][44] Question: Development of a satellite constellation - Management stated that while ambitions for a satellite constellation exist, focus remains on completing the Neutron project before pursuing such initiatives [46][48] Question: Update on backlog and RFP process - Management highlighted the lumpy nature of large program proposals and indicated that the timing for the SDA tranche three announcement is expected between September and October [52][54] Question: Electron launch mix for the remainder of the year - Management expects about three of the remaining launches this year to be Haste missions, with a total of at least 20 launches planned [60] Question: Demand for Neutron and potential acceleration of launch cadence - Management confirmed that while the target remains a 1.35 launch cadence, there is potential for acceleration depending on demand and program learnings [61][62] Question: Revenue recognition for SDA Tranche two award - Management explained that revenue recognition for the SDA program will ramp up as the company moves into full-scale production of satellites [66][68] Question: Interest in orbital transfer vehicles - Management expressed skepticism about the business case for orbital transfer vehicles but noted the company has the capability to enter the market if it becomes viable [86][87] Question: Total Addressable Market (TAM) for Electron - Management acknowledged that the TAM for Electron is expected to grow, particularly due to defense programs like the Golden Dome requiring extensive testing [88][89]

Rocket Lab eyes big defense opportunities with new acquisition | TechCrunch https://t.co/deKSg25JFT ...

Core Insights - Rocket Lab is positioning itself as more than just a launch company, emphasizing its space systems business and acquisition strategy to enhance competitiveness in government contracts [1][3]. Financial Performance - In the second quarter, Rocket Lab reported total revenues of $144.5 million, marking a 36% increase year-over-year, with space systems contributing $97.9 million [2]. - The company experienced a net loss of $66.4 million during the same period [2]. Acquisition Strategy - Rocket Lab is nearing the completion of its acquisition of Geost for $275 million, which will lead to the establishment of a new business unit focused on Optical Systems [3]. - This acquisition aims to enhance capabilities in manufacturing electro-optical and infrared sensors, which are critical for defense applications [4]. Defense Contracts - The company has secured significant defense contracts, including a $515 million deal for an 18-satellite build to support missile tracking initiatives [5]. - Rocket Lab is actively progressing on production for these satellites, confirming they meet Department of Defense (DOD) mission requirements [5]. Future Developments - The company is on track for the first launch of its larger Neutron rocket, with the launch complex in Virginia expected to be completed in Q3 2023 [6]. - Rocket Lab aims to have the Neutron rocket ready for launch by the end of 2025, with ongoing tests of its new rocket engine, Archimedes [8]. - The company ended the quarter with $564 million in cash and cash equivalents, projecting revenues of $145 to $155 million for the next quarter [8].

Financial Performance - Q2 2025 revenue increased by 36% year-over-year to $144.5 million[6, 80] - Q2 2025 GAAP gross margin was 32.1%, a 25% year-over-year expansion[7] - Q2 2025 Non-GAAP gross margin was 36.9%, a 20% year-over-year expansion[8] - The company's backlog as of Q2 2025 reached $1 billion[84] - Expect revenue to range between $145 million to $155 million in Q3 2025[103] - Expect GAAP gross margin to range between 35 - 37% and Non-GAAP gross margin of 39 - 41% in Q3 2025[103] Business Highlights - Rocket Lab completed five Electron launches in Q2 2025, setting a new record of two missions two days apart from Launch Complex 1[9, 30] - The company is acquiring Geost for $275 million in a cash-plus-equity transaction, with a potential earnout of up to $50 million[13] - Rocket Lab is the only provider delivering a launch + spacecraft end-to-end mission for the USSF's Tactically Responsive Space Program[18] - The company is on track for 20+ Electron launches this year[31]

FORM 10-Q Filing Information This section provides key administrative details regarding the company's quarterly report filing [Filing Details](index=1&type=section&id=Filing%20Details) This document is a Quarterly Report on Form 10-Q for Rocket Lab Corporation, covering the period ended June 30, 2025 - Filing Type: **Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**[2](index=2&type=chunk) - Period Ended: **June 30, 2025**[2](index=2&type=chunk) Title of each class | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock, par value $0.0001 per share | RKLB | The Nasdaq Stock Market LLC | - Filer Status: **Large accelerated filer**[4](index=4&type=chunk) - Common Stock Outstanding (as of August 4, 2025): **479.36 million shares**[4](index=4&type=chunk) Cautionary Note Regarding Forward-Looking Statements This section outlines the inherent risks and uncertainties associated with forward-looking statements in the report [Forward-Looking Statements and Risks](index=2&type=section&id=Forward-Looking%20Statements%20and%20Risks) This section highlights forward-looking statements, subject to risks and uncertainties that could materially alter actual results - Forward-looking statements are based on current expectations and beliefs, and actual results may vary materially due to risks and uncertainties[6](index=6&type=chunk) - Key risks include: ability to manage future growth and operational efficiencies, Electron launch rate, Neutron development delays, launch pad utilization, spacecraft component failures, competitive and regulatory changes, governmental policy shifts, customer defaults, compliance with U.S. government contract regulations, retaining key personnel, product defects/launch failures, intellectual property protection, supply chain disruptions, integration of acquisitions, global inflation/interest rates, geopolitical conflicts, and cybersecurity[6](index=6&type=chunk)[11](index=11&type=chunk) - The Company does not undertake to update or revise any forward-looking statements, except as required by applicable securities laws[7](index=7&type=chunk) PART I. FINANCIAL INFORMATION This part presents the company's unaudited condensed consolidated financial statements and management's analysis [Item 1. Condensed Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, offering a detailed financial overview [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity Condensed Consolidated Balance Sheets (in thousands) | Asset/Liability/Equity | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------- | :--------------------------- | :------------------------------- | | **Assets** | | | | Cash and cash equivalents | $564.1 million | $271.0 million | | Total current assets | $1.0 billion | $692.6 million | | Property, plant and equipment, net | $249.8 million | $194.8 million | | Total assets | $1.6 billion | $1.2 billion | | **Liabilities** | | | | Total current liabilities | $376.5 million | $339.5 million | | Convertible senior notes, net | $346.5 million | $345.4 million | | Total liabilities | $864.7 million | $801.9 million | | **Stockholders' Equity** | | | | Total stockholders' equity | $688.5 million | $382.5 million | - **Total assets increased by $368.9 million** from December 31, 2024, to June 30, 2025, primarily driven by an increase in cash and cash equivalents[16](index=16&type=chunk) - **Total stockholders' equity increased by $306.0 million**, largely due to additional paid-in capital from the ATM Equity Offering and preferred stock transactions[16](index=16&type=chunk)[19](index=19&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) This section details the company's financial performance, including revenues, expenses, and net loss Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Total revenues | $144.5 million | $106.3 million | $267.1 million | $199.0 million | | Gross profit | $46.4 million | $27.2 million | $81.6 million | $51.3 million | | Operating loss | $(59.6) million | $(43.3) million | $(118.8) million | $(86.4) million | | Net loss | $(66.4) million | $(41.6) million | $(127.0) million | $(85.9) million | | Basic and diluted net loss per share | $(0.1) | $(0.1) | $(0.2) | $(0.2) | - **Total revenues increased by 36%** for the three months ended June 30, 2025, and by **34%** for the six months ended June 30, 2025, compared to the respective prior periods, driven by growth in both Space Systems and Launch Services[17](index=17&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) - **Net loss increased** for both the three-month and six-month periods, primarily due to higher operating expenses, particularly in Research and Development for Neutron vehicle development, and increased interest expense[17](index=17&type=chunk)[141](index=141&type=chunk)[143](index=143&type=chunk)[150](index=150&type=chunk)[152](index=152&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section outlines changes in the company's equity, including stock issuances and net loss - **Total stockholders' equity increased from $382.5 million** at December 31, 2024, to **$688.5 million** at June 30, 2025[19](index=19&type=chunk) - **Significant increases in Additional Paid-In Capital** were due to the issuance of common stock under the ATM Equity Offering (**$90.1 million for Q1 2025** and **$297.0 million for Q2 2025**) and stock-based compensation[19](index=19&type=chunk) - The Company issued **50.95 million shares of Series A Convertible Participating Preferred Stock** in January 2025, with **5.0 million shares converted to common stock** in June 2025[19](index=19&type=chunk)[67](index=67&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net cash used in operating activities | $(77.5) million | $(15.6) million | | Net cash used in investing activities | $(36.0) million | $(63.1) million | | Net cash provided by financing activities | $406.0 million | $256.9 million | | Net increase in cash and cash equivalents and restricted cash | $293.7 million | $178.1 million | - **Net cash used in operating activities significantly increased to $77.5 million** in H1 2025 from **$15.6 million** in H1 2024, primarily due to a higher net loss and changes in operating assets and liabilities[21](index=21&type=chunk)[164](index=164&type=chunk) - **Net cash provided by financing activities increased to $406.0 million** in H1 2025, mainly driven by **$387.2 million in net proceeds from the ATM Equity Offering** and **$24.7 million from a draw under the Trinity Loan Agreement**[21](index=21&type=chunk)[166](index=166&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the financial statements - Rocket Lab Corporation is an end-to-end space company providing launch services, spacecraft design, components, manufacturing, and on-orbit management solutions. It operates **one of the only private orbital launch ranges globally** in Mahia, New Zealand[24](index=24&type=chunk) - A **holding company reorganization was implemented on May 23, 2025**, with Rocket Lab Corporation becoming the successor issuer to Rocket Lab USA, Inc[25](index=25&type=chunk)[26](index=26&type=chunk) - **Revenue recognition policy was updated**; launch services revenue is generally recognized point-in-time upon intentional ignition or successful delivery, but over-time if there's no alternative use for the vehicle and an enforceable right to payment exists[29](index=29&type=chunk)[30](index=30&type=chunk) Total Revenue by Recognition Model (in thousands) | Recognition Model | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :---------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Point-in-time | $70.3 million | $45.9 million | $125.1 million | $89.9 million | | Over-time | $74.2 million | $60.4 million | $142.0 million | $109.1 million | | **Total Revenue** | **$144.5 million** | **$106.3 million** | **$267.1 million** | **$199.0 million** | - **Backlog totaled $995.4 million** as of June 30, 2025, with approximately **58% expected to be recognized within 12 months**. This represents a **decrease from $1,067.0 million** as of December 31, 2024[38](index=38&type=chunk)[128](index=128&type=chunk) - The Company issued **$355.0 million in 4.250% Convertible Senior Notes** due 2029 in February 2024. **Noteholders gained the right to convert** between July 1, 2025, and September 30, 2025, due to the common stock price exceeding 130% of the conversion price[55](index=55&type=chunk)[57](index=57&type=chunk)[59](index=59&type=chunk) - In January 2025, the Company issued **50.95 million shares of Series A Convertible Participating Preferred Stock** to The Equatorial Trust, with **5.0 million shares converted to common stock** in June 2025[67](index=67&type=chunk) - Through June 30, 2025, the Company sold **15.14 million shares of common stock** via an ATM Equity Offering, generating **$396.6 million in gross proceeds**[75](index=75&type=chunk) Stock-Based Compensation Expense (in thousands) | Expense Category | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Cost of revenues | $4.9 million | $3.7 million | $8.8 million | $7.2 million | | R&D, net | $5.6 million | $5.0 million | $10.5 million | $9.0 million | | SG&A | $7.5 million | $5.2 million | $17.9 million | $10.8 million | | **Total** | **$17.9 million** | **$14.0 million** | **$37.2 million** | **$27.0 million** | Segment Revenues and Gross Profit (in thousands) **Three Months Ended June 30, 2025:** | Segment | Revenues (in thousands) | Cost of Revenues (in thousands) | Gross Profit (in thousands) | | :------------ | :---------------------- | :------------------------------ | :-------------------------- | | Launch Services | $46.6 million | $32.4 million | $14.2 million | | Space Systems | $97.9 million | $65.7 million | $32.2 million | **Six Months Ended June 30, 2025:** | Segment | Revenues (in thousands) | Cost of Revenues (in thousands) | Gross Profit (in thousands) | | :------------ | :---------------------- | :------------------------------ | :-------------------------- | | Launch Services | $82.2 million | $60.8 million | $21.4 million | | Space Systems | $184.8 million | $124.6 million | $60.2 million | - On July 4, 2025, the **One Big Beautiful Bill Act (OBBB) was enacted**, which includes the **repeal of mandatory capitalization of domestic R&D expenditures** (reinstating full expensing beginning in 2025). The Company is evaluating its impact[105](index=105&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Rocket Lab's financial condition and operational results [Overview](index=29&type=section&id=Overview) This section provides a high-level description of Rocket Lab's business, including its launch services and space systems - Rocket Lab is an end-to-end space company providing launch services (Electron, in-development Neutron) and space systems (design, manufacturing, components, on-orbit management)[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - **Electron has successfully delivered over 200 spacecraft to orbit across 64 missions** through June 30, 2025, and was the **second most frequently orbital launched rocket globally in 2024**[109](index=109&type=chunk) - Neutron, a reusable medium-capacity launch vehicle, is under development to increase payload capacity to approximately **15,000 kg for low Earth orbit** and support commercial, U.S. government constellation launches, and potentially human space flight[110](index=110&type=chunk) [Recent Developments](index=30&type=section&id=Recent%20Developments) This section highlights significant recent events and strategic initiatives impacting the company - Rocket Lab USA Inc. entered into a Stock Purchase Agreement on May 22, 2025, to **acquire GEOST LLC for an aggregate consideration of $275.0 million**, consisting of up to **$125.0 million in cash** and up to **$150.0 million in common stock**, plus potential earnout payments of up to **$50.0 million**[113](index=113&type=chunk)[114](index=114&type=chunk) - The Company is assessing the impact of significant shifts in U.S. trade policy, including increased tariffs, which could affect its supply chain and business operations, though **no material impact has been observed to date**[116](index=116&type=chunk) [Key Factors Affecting Our Performance](index=31&type=section&id=Key%20Factors%20Affecting%20Our%20Performance) This section discusses the primary internal and external factors influencing the company's financial and operational results - Future results depend on the **timely development and successful deployment of the Neutron launch vehicle**, which involves inherent risks and potential delays in engineering, manufacturing, and production rates[117](index=117&type=chunk) - **Growth is dependent on the ability to sell additional launch services, space systems services, and spacecraft components** to new and existing customers, expanding the addressable market with Neutron and winning spacecraft constellation missions[118](index=118&type=chunk) - **Improving profit margins and scaling the business** through cost reduction initiatives and increased production volumes are critical, with potential negative impacts from lower facility utilization, cost overruns, and supply chain issues[119](index=119&type=chunk) - **Continued government expenditures and private enterprise investment in the space economy** are important factors for the Company's growth prospects[120](index=120&type=chunk) [Key Metrics and Select Financial Data](index=31&type=section&id=Key%20Metrics%20and%20Select%20Financial%20Data) This section presents crucial performance indicators and summarized financial figures for analysis Electron Launch Vehicle Build-Rate and Launch Cadence | Metric | 2022 (in thousands) | 2023 (in thousands) | 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | | :-------------------- | :------------------ | :------------------ | :------------------ | :-------------------------------------------- | | Electron vehicles built | ~12 | ~11 | ~14 | ~12 | | Electron vehicles launched | 9 | 10 | 16 | 10 | - **Total revenue increased by 36% to $144.5 million** for Q2 2025 (vs. $106.3 million in Q2 2024) and by **34% to $267.1 million** for H1 2025 (vs. $199.0 million in H1 2024), driven by growth in both Space Systems (satellite manufacturing) and Launch Services (higher launch cadence and revenue per launch)[123](index=123&type=chunk)[124](index=124&type=chunk) Revenue and Cost Value Per Launch (Point-in-Time Launches) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Revenue value per launch | $7.9 million | $7.1 million | $7.5 million | $7.7 million | | Cost per launch | $5.0 million | $5.4 million | $5.3 million | $5.7 million | - **Backlog decreased from $1,067.0 million** as of December 31, 2024, to **$995.4 million** as of June 30, 2025, with **$585.8 million related to space systems** and **$409.6 million to launch services**[128](index=128&type=chunk) [Components of Results of Operations](index=33&type=section&id=Components%20of%20Results%20of%20Operations) This section breaks down the various revenue and expense categories contributing to the company's operational outcomes - **Revenues are derived from long-term fixed-price contracts** for launch services and spacecraft builds, and purchase order-based spacecraft components sales, recognized either 'point-in-time' or 'over-time'[129](index=129&type=chunk) - **Cost of revenues includes direct material, labor, manufacturing overhead, freight, depreciation, and personnel expenses**. The Company expects cost of revenues to increase in absolute dollars but decrease as a percentage of revenue over time by increasing production rates[131](index=131&type=chunk)[132](index=132&type=chunk) - **Research and development expenses are primarily for Neutron launch vehicle development**, Electron first stage recovery, and expanding spacecraft product portfolios, expected to decline as a percentage of total revenue over time[134](index=134&type=chunk) - **Selling, general and administrative expenses are expected to increase in absolute dollars** due to corporate infrastructure investments and public company operating costs, but decline as a percentage of total revenue over time[135](index=135&type=chunk) [Comparison of the Three Months Ended June 30, 2025 and 2024](index=34&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section analyzes the financial performance for the three-month period, comparing current and prior year results Key Financials (Three Months Ended June 30, in thousands) | Metric | 2025 ($) (in thousands) | 2025 (%) | 2024 ($) (in thousands) | 2024 (%) | $ Change (in thousands) | % Change | | :-------------------------- | :---------------------- | :------- | :---------------------- | :------- | :---------------------- | :------- | | Revenues | $144.5 million | 100.0% | $106.3 million | 100.0% | $38.2 million | 36% | | Cost of revenues | $98.1 million | 67.9% | $79.1 million | 74.4% | $19.0 million | 24% | | Gross profit | $46.4 million | 32.1% | $27.2 million | 25.6% | $19.2 million | 71% | | Research and development, net | $66.1 million | 45.8% | $39.9 million | 37.6% | $26.2 million | 66% | | Selling, general and administrative | $39.9 million | 27.6% | $30.5 million | 28.7% | $9.4 million | 31% | | Operating loss | $(59.6) million | (41.3)% | $(43.3) million | (40.7)% | $(16.4) million | 38% | | Net loss | $(66.4) million | (45.9)% | $(41.6) million | (39.2)% | $(24.8) million | 60% | - **Revenue growth was primarily driven by a $21.0 million (27%) increase in Space Systems revenue** due to spacecraft manufacturing, and a **$17.3 million (59%) increase in Launch Services revenue** due to higher launch cadence (5 vs. 4 missions) and higher revenue per point-in-time launch[139](index=139&type=chunk) - **Gross profit increased by 71% to $46.4 million**, and **gross margin improved from 25.6% to 32.1%**[138](index=138&type=chunk) - **Research and development expense increased by 66% to $66.1 million**, mainly due to Neutron development progress, increased staff, and prototype spending for spacecraft products[141](index=141&type=chunk) - **Interest expense, net, increased by 188% to $(2.4) million**, primarily due to convertible senior notes and reduced interest-bearing account balances[143](index=143&type=chunk) [Comparison of the Six Months Ended June 30, 2025 and 2024](index=38&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section analyzes the financial performance for the six-month period, comparing current and prior year results Key Financials (Six Months Ended June 30, in thousands) | Metric | 2025 ($) (in thousands) | 2025 (%) | 2024 ($) (in thousands) | 2024 (%) | $ Change (in thousands) | % Change | | :-------------------------- | :---------------------- | :------- | :---------------------- | :------- | :---------------------- | :------- | | Revenues | $267.1 million | 100.0% | $199.0 million | 100.0% | $68.0 million | 34% | | Cost of revenues | $185.4 million | 69.4% | $147.7 million | 74.2% | $37.8 million | 26% | | Gross profit | $81.6 million | 30.6% | $51.3 million | 25.8% | $30.3 million | 59% | | Research and development, net | $121.2 million | 45.4% | $78.4 million | 39.4% | $42.8 million | 55% | | Selling, general and administrative | $79.2 million | 29.7% | $59.3 million | 29.8% | $19.9 million | 34% | | Operating loss | $(118.8) million | (44.5)% | $(86.4) million | (43.4)% | $(32.5) million | 38% | | Net loss | $(127.0) million | (47.6)% | $(85.9) million | (43.2)% | $(41.1) million | 48% | - **Revenue growth was primarily driven by a $47.9 million (35%) increase in Space Systems revenue** due to spacecraft manufacturing, and a **$20.2 million (32%) increase in Launch Services revenue** due to higher launch cadence (10 vs. 8 missions) and over-time revenue recognition, partially offset by lower revenue per point-in-time launch[148](index=148&type=chunk) - **Gross profit increased by 59% to $81.6 million**, and **gross margin improved from 25.8% to 30.6%**[147](index=147&type=chunk) - **Research and development expense increased by 55% to $121.2 million**, mainly due to Neutron development progress, increased staff, and prototype spending for spacecraft products[150](index=150&type=chunk) - **Interest expense, net, increased by 188% to $(5.0) million**, primarily due to convertible senior notes and reduced interest-bearing account balances[152](index=152&type=chunk) - **Loss on foreign exchange increased significantly by 2,592% to $(0.6) million**, primarily due to fluctuations in the New Zealand Dollar and Canadian Dollar against the U.S. Dollar[153](index=153&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet short-term obligations and fund long-term growth initiatives - As of June 30, 2025, the Company had **$564.1 million in cash and cash equivalents** and **$185.2 million in marketable securities**[156](index=156&type=chunk) - The Company believes **existing cash, cash equivalents, and customer payments will be sufficient to meet working capital and capital expenditure needs for at least the next twelve months**[157](index=157&type=chunk) - **Total outstanding indebtedness was $427.1 million** as of June 30, 2025, including **$355.0 million in convertible senior notes** and **$72.1 million under the Trinity Loan Agreement**[158](index=158&type=chunk)[160](index=160&type=chunk) - **Capital expenditures for the six months ended June 30, 2025, were $60.7 million**[159](index=159&type=chunk) - **Future capital requirements are expected to increase significantly** due to investments in new products/technologies, facility expansion, sales/marketing, and operating as a public company[159](index=159&type=chunk)[162](index=162&type=chunk) [Cash Flows](index=42&type=section&id=Cash%20Flows) This section details the movement of cash through operating, investing, and financing activities Summary of Cash Flows (in thousands) | Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------- | :-------------------------------------------- | :-------------------------------------------- | | Operating activities | $(77.5) million | $(15.6) million | | Investing activities | $(36.0) million | $(63.1) million | | Financing activities | $406.0 million | $256.9 million | - **Net cash used in operating activities increased to $77.5 million** in H1 2025, primarily due to a **net loss of $127.0 million**, partially offset by non-cash adjustments like **stock-based compensation ($37.2 million)** and **depreciation/amortization ($17.5 million)**[164](index=164&type=chunk) - **Net cash used in investing activities decreased to $36.0 million** in H1 2025, mainly due to **$60.7 million in capital equipment purchases**, partially offset by **$24.6 million net cash from marketable securities**[165](index=165&type=chunk) - **Net cash provided by financing activities increased to $406.0 million** in H1 2025, driven by **$387.2 million from the ATM Equity Offering** and **$24.7 million from the Trinity Loan Agreement draw**[166](index=166&type=chunk) [Critical Accounting Policies and Estimates](index=42&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section discusses the significant accounting policies and judgments that impact the financial statements - **No material changes** to the Company's critical accounting policies and estimates as disclosed in its Annual Report on Form 10-K[167](index=167&type=chunk) [Off-Balance Sheet Arrangements](index=42&type=section&id=Off-Balance%20Sheet%20Arrangements) This section discloses any material off-balance sheet transactions or obligations of the company - The Company did not have **any off-balance sheet arrangements** during the periods presented[168](index=168&type=chunk) [Guarantor Information](index=42&type=section&id=Guarantor%20Information) This section provides details regarding the company's guarantees on outstanding indebtedness - Rocket Lab Corporation **fully and unconditionally guarantees the $355.0 million aggregate principal amount of convertible senior notes** issued by Rocket Lab USA, Inc. following the holding company reorganization[169](index=169&type=chunk)[170](index=170&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the Company's exposure to market risks, primarily from foreign currency, interest rates, and inflation [Foreign Currency Exchange Risk](index=43&type=section&id=Foreign%20Currency%20Exchange%20Risk) This section describes the company's exposure to fluctuations in foreign currency exchange rates - The Company's reporting currency is the U.S. dollar, and it is exposed to **foreign currency exchange risk** from operations in New Zealand, Canada, and Australia[172](index=172&type=chunk) - **Materially all revenues are U.S. dollar-denominated**, and the Company has not engaged in hedging foreign currency risk to date, making it susceptible to significant exchange rate movements[172](index=172&type=chunk) [Interest Rate Risk](index=43&type=section&id=Interest%20Rate%20Risk) This section outlines the company's exposure to changes in interest rates on its financial instruments - As of June 30, 2025, the Company held **$564.1 million in cash and cash equivalents** and **$185.2 million in marketable securities**, primarily in operating accounts, money market instruments, commercial paper, corporate debt, certificates of deposit, U.S. Treasury bills, and asset-backed securities[173](index=173&type=chunk) - The Company does not use **derivative financial instruments to manage interest rate risk**[173](index=173&type=chunk) [Impact of Inflation](index=43&type=section&id=Impact%20of%20Inflation) This section assesses the potential effects of inflation on the company's operations and financial condition - **Inflation has not had a material effect** on the Company's business, results of operations, or financial condition to date[174](index=174&type=chunk) - **Significant inflationary pressures on costs could diminish margins** if not offset, potentially harming the business[174](index=174&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the Company's disclosure controls and procedures and reports on any changes [Evaluation of Disclosure Controls and Procedures](index=43&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section reports on the effectiveness of the company's controls for financial reporting and disclosure - Management, with the participation of the principal executive and financial officers, concluded that the Company's **disclosure controls and procedures were effective as of June 30, 2025**[176](index=176&type=chunk) [Changes in Internal Control over Financial Reporting](index=43&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section details any material changes in the company's internal control over financial reporting - **No material changes** in the Company's internal control over financial reporting occurred during the period[177](index=177&type=chunk) PART II. OTHER INFORMATION This part covers legal proceedings, risk factors, equity sales, and other miscellaneous disclosures [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) This section confirms the absence of material legal proceedings against the company - Management believes **no current claims or actions pending** could have a material adverse effect on the Company's financial position, results of operations, or cash flows[178](index=178&type=chunk) [Item 1A. Risk Factors](index=44&type=page&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed - **No material changes** from previously disclosed risk factors[179](index=179&type=chunk) [Item 2. Unregistered Sales of Equity Securities](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities) This section reports on any unregistered sales of the company's equity securities - **No unregistered sales of equity securities** occurred[180](index=180&type=chunk) [Item 3. Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section confirms whether any defaults occurred on the company's senior securities - **No defaults upon senior securities** occurred[181](index=181&type=chunk) [Item 4. Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section addresses any required disclosures related to mine safety - **No mine safety disclosures** are applicable[182](index=182&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) This section provides additional material information not covered elsewhere in the report - Sir Peter Beck, CEO, entered into a **Rule 10b5-1 trading plan** on June 13, 2025, to sell up to **5.0 million shares of common stock**, with a selling start date of September 15, 2025, and an expiration date of December 17, 2025[183](index=183&type=chunk)[184](index=184&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists all documents filed as exhibits to the quarterly report - **Key exhibits include the Amended and Restated Certificate of Incorporation, Bylaws, Certificate of Designations of Series A Preferred Stock, First Supplemental Indenture, Stock Purchase Agreement for GEOST, and certifications of principal executive and financial officers**[186](index=186&type=chunk) Signatures This section contains the official signatures certifying the accuracy and completeness of the report [Report Signatures](index=46&type=section&id=Report%20Signatures) This section contains the official signatures certifying the accuracy and completeness of the report - The report was **signed on August 7, 2025**, by Peter Beck, President, Chief Executive Officer and Chairman, and Adam Spice, Chief Financial Officer[193](index=193&type=chunk)

Financial Performance - Rocket Lab reported record quarterly revenue of $144 million for Q2 2025, representing a 36% year-on-year growth[1] - Gross profit for Q2 2025 was $46.4 million, with a gross margin of approximately 32.2%[15] - For Q3 2025, Rocket Lab expects revenue between $145 million and $155 million, with GAAP gross margins between 35% and 37%[10] - The company anticipates an Adjusted EBITDA loss of between $21 million and $23 million for Q3 2025[10] - Net loss for Q2 2025 was $66.4 million, compared to a net loss of $41.6 million in Q2 2024[15] - Net loss for the six months ended June 30, 2025, was $127,030 thousand, compared to a net loss of $85,891 thousand for the same period in 2024, indicating a decline of 47.8%[19] - The adjusted EBITDA for the six months ended June 30, 2025, was $(57,546) thousand, compared to $(42,882) thousand in the same period of 2024, indicating a worsening of 34.3%[22] Operational Highlights - The company successfully launched five Electron missions in the quarter, bringing the total Electron launch count to 69[5] - Rocket Lab is on track to complete Launch Complex 3 for its Neutron rocket in Q3 2025, enhancing its launch capabilities[5] - Rocket Lab is in production for a $515 million contract to build 18 spacecraft for the Space Development Agency's Tranche 2 Transport Layer[5] - The acquisition of Geost for $275 million is expected to close shortly, positioning the company for future defense satellite contracts[5] Expenses and Liabilities - Research and development expenses for Q2 2025 were $66.1 million, up from $39.9 million in Q2 2024[15] - Total current liabilities rose to $376,453 thousand as of June 30, 2025, compared to $339,525 thousand at December 31, 2024, marking an increase of 10.8%[17] - The company reported a significant increase in stock-based compensation expense, which rose to $37,167 thousand for the six months ended June 30, 2025, compared to $27,048 thousand in 2024, an increase of 37.7%[22] - GAAP Operating expenses for Q2 2025 were $106,027 million, up from $70,436 million in Q2 2024, which is a 50.6% increase[23] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $564,081 thousand, significantly higher than $271,042 thousand at the end of 2024, reflecting an increase of 108.2%[17] - Net cash used in operating activities for the first half of 2025 was $77,467 thousand, compared to $15,588 thousand in the same period of 2024, showing a substantial increase in cash outflow[19] - Cash flows from financing activities provided $406,048 thousand in the first half of 2025, compared to $256,943 thousand in the same period of 2024, indicating a growth of 58.1%[19] - Total assets increased to $1,553,233 thousand as of June 30, 2025, up from $1,184,342 thousand at December 31, 2024, representing a growth of approximately 31.1%[17] - The company’s total stockholders' equity increased to $688,485 thousand as of June 30, 2025, up from $382,453 thousand at the end of 2024, representing an increase of 80.0%[17] Profitability Metrics - GAAP Gross profit for Q2 2025 was $46,388 million, up from $27,162 million in Q2 2024, representing a 71.1% increase[23] - Non-GAAP Gross profit for the first half of 2025 reached $94,371 million, compared to $61,996 million in the same period of 2024, reflecting a 52.5% growth[23] - GAAP Research and development expenses for Q2 2025 totaled $66,134 million, significantly higher than $39,912 million in Q2 2024, marking a 65.8% increase[23] - Non-GAAP Operating loss for the first half of 2025 was $69,380 million, compared to $52,957 million in the first half of 2024, indicating a 31.1% increase in losses[23] - Non-GAAP Gross margin improved to 35.3% in the first half of 2025, up from 31.2% in the same period of 2024[23]

Core Viewpoint - Easing tariff concerns have led to a surge in growth stocks, with significant returns for investors who bought during the initial panic following tariff announcements [1][2]. Group 1: Robinhood Markets - Robinhood Markets has seen a remarkable increase of 152% since the tariff announcements, rebounding from a low of less than $40 per share [4][6]. - The company reported a 45% year-over-year revenue increase, totaling $989 million, with net income more than doubling to $386 million [5]. - The introduction of tokenization is highlighted as a major innovation, allowing investors to hold stock tokens via blockchain, enhancing market access without commissions [5][6]. Group 2: Rocket Lab Corporation - Rocket Lab's stock has risen by 145%, climbing from below $20 to nearly $45 [7]. - The company has successfully completed 68 launches of its Electron rocket, with potential growth opportunities tied to the upcoming debut of its larger Neutron rocket [7][8]. - Despite its growth, Rocket Lab incurred a net loss of over $190 million last year and burned through $49 million in operations, indicating a need for significant cash to expand [9][10]. Group 3: Opendoor Technologies - Opendoor Technologies has increased by 144%, with shares skyrocketing 300% in the past month, although it remains a high-risk investment [11][12]. - The company operates in a capital-intensive home-flipping business, which requires substantial cash infusions and is dependent on a strong housing market [11][13]. - Last year, Opendoor reported a net loss of $392 million on sales of $5.2 billion, raising concerns about its path to profitability amid economic uncertainty [13].

Group 1 - Rocket Lab (NASDAQ: RKLB) has shown significant stock performance, with an increase of over 70% year-to-date [1]

Rocket Lab Corporation RKLB shares were trading lower on Tuesday. Stifel analyst Erik Rasmussen maintains a Buy rating for Rocket Lab, raising the price forecast from $34 to $55. The firm reported another flawless mission with its Electron rocket, deploying seven satellites for the Internet of Things Quantified Payload Service (IQPS) constellation. Also Read: Rocket Lab Shares Fall After New Analyst Coverage And Valuation Concerns The vehicle lifted off from the Mahia Peninsula launch complex in New Zealand ...

Core Viewpoint - Rocket Lab USA, Inc. is expected to report second-quarter 2025 results on August 7, 2025, with projected revenues of $135.1 million, reflecting a 27.1% year-over-year increase, and an estimated loss of seven cents per share, an improvement from the previous year's loss of eight cents [1][6]. Revenue Projections - The Zacks Consensus Estimate for Rocket Lab's revenues is $135.1 million for Q2, indicating a 27.1% increase from the same quarter last year [1][6]. - The Launch Services Unit is projected to generate revenues of $39.5 million, a 34.5% increase year-over-year, driven by an increase in launch missions and higher average selling prices from HASTE missions [7][8]. - The Space Systems Unit is expected to report revenues of $95.4 million, reflecting a 24.1% growth from the prior year, supported by strong performance in spacecraft and satellite manufacturing [9]. Earnings Expectations - The bottom line is anticipated to show improvement, with a projected loss of seven cents per share, compared to a loss of eight cents in the previous year [1][6]. - Rocket Lab has an Earnings ESP of +18.18% and a Zacks Rank of 3, indicating a favorable outlook for earnings performance [4]. Cost Considerations - Increased operating costs, particularly from the Neutron program, a growing workforce, and rising R&D expenses, may negatively impact operating margins despite strong revenue growth [11][16]. Stock Performance - Rocket Lab's shares have increased by 844.6% over the past year, significantly outperforming the Zacks aerospace-defense equipment industry's growth of 55.3% and the broader Zacks Aerospace sector's return of 27.2% [12]. - The company's forward 12-month price-to-sales ratio is 24.03X, which is higher than the industry average of 9.61X, indicating a premium valuation [13]. Industry Outlook - The space economy is projected to reach $1.8 trillion by 2035, driven by the growing adoption of satellite and rocket technologies, enhancing long-term growth prospects for space stocks like Rocket Lab [15]. - Rocket Lab's Electron launch vehicle is noted as the second most frequently launched orbital rocket by U.S. companies, highlighting its competitive position in the market [15].