Rocket Lab USA(RKLB) - 2025 Q1 - Quarterly Results

Financial Performance and Outlook First Quarter 2025 Financial Results The company reported strong Q1 2025 revenue growth of 32% to $123 million, though the net loss widened to $60.6 million due to higher expenses Q1 2025 Financial Highlights | Financial Metric | Q1 2025 | Q1 2024 | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Total Revenues | $122.6M | $92.8M | +32.1% | | Gross Profit | $35.2M | $24.2M | +45.8% | | Operating Loss | ($59.2M) | ($43.1M) | +37.4% | | Net Loss | ($60.6M) | ($44.3M) | +36.9% | | Net Loss Per Share | ($0.12) | ($0.09) | +33.3% | - Q1 revenue of $123 million was at the top end of the company's guidance and represented a 32% increase compared to Q1 2024[2] Second Quarter 2025 Guidance The company projects Q2 2025 revenue between $130 million and $140 million, with an expected Adjusted EBITDA loss of $28 million to $30 million Q2 2025 Guidance | Metric | Q2 2025 Guidance | | :--- | :--- | | Revenue | $130M - $140M | | GAAP Gross Margins | 30% - 32% | | Non-GAAP Gross Margins | 34% - 36% | | GAAP Operating Expenses | $96M - $98M | | Non-GAAP Operating Expenses | $82M - $84M | | Adjusted EBITDA Loss | ($28M) - ($30M) | - The company has not provided a reconciliation for forward-looking Non-GAAP measures due to the inability to predict certain adjustments, particularly stock-based compensation, which is expected to be $13 million to $14 million in Q2 2025[9] Business Highlights and Corporate Developments Business Highlights The company secured major national security contracts, completed five launches, and announced its intention to acquire Mynaric for European expansion Launch Services The Launch division secured key national security contracts for its Neutron and HASTE vehicles and completed five successful Electron missions - Successfully on-ramped the Neutron rocket to the Department of Defense's $5.6 billion National Security Space Launch (NSSL) Phase 3 Lane 1 program, making it eligible to launch high-priority national security missions[5] - Signed a Neutron launch contract with the U.S. Air Force for a point-to-point transportation system experiment scheduled for no earlier than 2026[5] - Successfully launched five Electron missions in Q1 2025 for three different commercial satellite constellation operators[5] - Awarded a new HASTE launch contract by Kratos for the DoD's MACH-TB 2.0 program, with the first flight test scheduled for no earlier than Q1 2026[5] - Selected for two multi-billion dollar government programs in the U.S. and U.K., making the HASTE vehicle eligible to compete for hypersonic flight tests[6] Space Systems The division announced its intent to acquire Mynaric for European expansion and broadened its portfolio with new solar arrays, radios, and software - Announced the intention to acquire Mynaric, a leading provider of laser optical communications terminals, to expand into Europe and scale production[10] - Expanded its space systems product line to include the STARRAY family of solar arrays, an expanded suite of Frontier radios, and next-generation space software for satellite constellation management[10] Corporate Structure Reorganization The company plans a reorganization to establish a new public holding company, Rocket Lab Corporation, to enhance efficiency and security alignment - The company plans to establish a new holding company, Rocket Lab Corporation, which will replace Rocket Lab USA, Inc. as the public company listed on Nasdaq[11] - The new structure aims to better align legal entities with business objectives and U.S. Government security requirements, enabling more efficient management and growth[3] - The change is expected to be effective by June 1, 2025, and existing shares will automatically convert on a one-for-one basis, with no action required from stockholders[11][13] Financial Statements Condensed Consolidated Statements of Operations Revenues grew to $122.6 million, but higher operating expenses led to an increased operating loss of $59.2 million and a net loss of $60.6 million | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenues | $122,569 | $92,767 | | Gross profit | $35,247 | $24,174 | | Total operating expenses | $94,435 | $67,253 | | Operating loss | ($59,188) | ($43,079) | | Net loss | ($60,616) | ($44,260) | | Net loss per share | ($0.12) | ($0.09) | Condensed Consolidated Balance Sheets Total assets grew to $1.25 billion, with cash increasing to $303.1 million and total liabilities rising to $823.7 million as of March 31, 2025 | (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $303,149 | $271,042 | | Total current assets | $724,850 | $692,621 | | Total assets | $1,254,973 | $1,184,342 | | Total current liabilities | $348,116 | $339,525 | | Total liabilities | $823,679 | $801,889 | | Total stockholders' equity | $431,294 | $382,453 | Condensed Consolidated Statements of Cash Flows Net cash used in operations was $54.2 million, offset by $115.5 million from financing activities, resulting in a net cash increase of $32.9 million | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($54,225) | ($2,588) | | Net cash used in investing activities | ($28,601) | ($52,256) | | Net cash provided by financing activities | $115,503 | $258,707 | | Net increase in cash and cash equivalents | $32,949 | $203,344 | | Cash and cash equivalents, end of period | $308,251 | $369,778 | Non-GAAP Financial Measures Reconciliation of GAAP to Non-GAAP Measures The Q1 2025 Adjusted EBITDA loss was $30.0 million, while Non-GAAP gross margin improved to 33.4% from 31.7% year-over-year Reconciliation of Net Loss to Adjusted EBITDA | (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss (GAAP) | ($60,616) | ($44,260) | | Stock-based compensation expense | $19,234 | $13,093 | | Depreciation & Amortization | $8,707 | $8,313 | | Interest expense, net | $2,586 | $898 | | Other adjustments | $1,127 | $268 | | Adjusted EBITDA (Non-GAAP) | ($29,962) | ($21,670) | Reconciliation of Gross Profit and Margin | (in thousands, except margin) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP Gross profit | $35,247 | $24,174 | | Stock-based compensation | $3,920 | $3,503 | | Amortization of purchased intangibles | $1,823 | $1,743 | | Non-GAAP Gross profit | $40,990 | $29,420 | | Non-GAAP Gross margin | 33.4% | 31.7% |