Rocket Lab USA(US:RKLB)2025-11-10 21:26Revenue Growth - Revenue for the three months ended September 30, 2025, was $155.1 million, a 48% increase from $104.8 million in the same period in 2024[139]. - Revenue for the nine months ended September 30, 2025, was $422.1 million, representing a 39% increase from $303.8 million in the same period in 2024[140]. - Revenue for the three months ended September 30, 2025, was $155.1 million, an increase of $50.3 million or 48% compared to $104.8 million in the same period of 2024[155]. - Revenues for the nine months ended September 30, 2025, increased by $118.3 million, or 39%, to $422.1 million compared to $303.8 million in 2024[164]. Launch and Production - The company launched 14 Electron vehicles through the nine months ended September 30, 2025, compared to 11 launches in the same period in 2024[140]. - The average revenue per launch for the three months ended September 30, 2025, was $10.1 million, up from $7.0 million in the same period in 2024[142]. - The cost per launch for the three months ended September 30, 2025, was $5.9 million, compared to $5.0 million in the same period in 2024[142]. - The company has completed 68 Electron launches, delivering over 200 spacecraft to orbit as of September 30, 2025[133]. - The company built approximately 17 Electron launch vehicles through the nine months ended September 30, 2025[138]. - Launch services revenue increased to $40.9 million, a rise of $20.0 million or 95%, attributed to a higher launch cadence with four Electron missions completed[155]. - Launch Services revenue rose to $123.2 million, an increase of $40.1 million, or 48%, driven by a higher launch cadence with 14 Electron launch missions completed[164]. Financial Performance - Cost of revenues for the three months ended September 30, 2025, was $97.8 million, an increase of $21.0 million or 27% compared to $76.8 million in 2024[156]. - Cost of revenues increased by $58.7 million, or 26%, to $283.2 million, with space systems cost of revenue at $205.2 million, up 25%[165]. - Research and development expenses rose to $70.7 million, an increase of $23.0 million or 48%, primarily due to Neutron development and increased staffing[157]. - Research and development expenses rose by $65.8 million, or 52%, to $191.9 million, primarily due to Neutron development and increased staffing[166]. - Selling, general and administrative expenses increased by $13.4 million or 42% to $45.6 million, driven by higher staffing and transaction expenses[158]. - Selling, general and administrative expenses increased by $33.4 million, or 36%, to $124.8 million, mainly due to higher staffing costs and transaction expenses[167]. - The net loss for the three months ended September 30, 2025, was $18.3 million, compared to a net loss of $51.9 million in the same period of 2024[154]. - Net loss for the nine months ended September 30, 2025, was $145.3 million, compared to a net loss of $137.8 million in 2024[163]. Backlog and Future Outlook - The backlog increased from $1,067.0 million as of December 31, 2024, to $1,096.0 million as of September 30, 2025, with $586.3 million related to space systems and $509.7 million to launch services[144]. - The company anticipates that government expenditures and private investment will continue to support growth in the space economy[136]. Cash and Financing - Cash and cash equivalents as of September 30, 2025, totaled $807.9 million, with $215.1 million in marketable securities[172]. - Cash used in operating activities was $101.0 million, driven by a net loss of $145.3 million and $58.3 million in non-cash activities[179]. - Cash provided by financing activities was $881.7 million, primarily from $845.3 million in net proceeds from the issuance of common stock[181]. - As of September 30, 2025, the company had $355.0 million in aggregate principal amount of issued and outstanding convertible senior notes fully guaranteed[189]. - The company reported cash and cash equivalents of $807.9 million and $215.1 million invested in marketable securities as of September 30, 2025[192]. Tax and Interest - The effective tax rate for the three months ended September 30, 2025, was 69.2%, compared to (1.9)% for the same period in 2024, reflecting a significant income tax benefit of $41.1 million[161]. - Interest expense, net increased by $0.1 million or 30% to $(0.6) million for the three months ended September 30, 2025, primarily due to increased borrowings[159]. Market Risks - The company has not engaged in hedging foreign currency risk, which could lead to significant impacts on financial results with a 10% or greater move in exchange rates[191]. - The company does not believe inflation has materially affected its business, but significant inflationary pressures could diminish margins and profits[193]. - The company is exposed to market risks due to fluctuations in foreign currency exchange rates, interest rates, and inflation[190]. Business Combinations - The company uses the acquisition method of accounting for business combinations, recognizing assets and liabilities at fair value on the acquisition date[183]. - Contingent consideration in business combinations is measured at fair value as of the acquisition date and included in the total purchase price[185]. - The company engages valuation specialists to assist in determining fair values of assets acquired and liabilities assumed in business combinations[184]. - The company has not had any off-balance sheet arrangements during the periods presented[187].