Rocket Lab 2025 Q2 Earnings Wider Losses Despite Revenue Beat

Rocket Lab delivered stronger-than-expected revenue in Q2 2025, but the company’s losses widened, missing positive expectations. The firm exceeded its financial guidance with a 36% year-over-year revenue increase, though earnings performance remained negative. Management provided in-line guidance for the next quarter, maintaining a cautious outlook amid ongoing operational scaling.

Revenue

Rocket Lab’s Q2 revenue surged to $144.50 million, a 36% increase year-over-year, driven by strong demand across its business lines. The Space Systems segment was the largest contributor, generating $97.85 million, reflecting robust performance in satellite and payload development. Launch Services added $46.65 million, demonstrating continued momentum in the small satellite launch market. Combined, these two segments accounted for the full $144.50 million in total revenue, underscoring the company’s diversified revenue streams and execution capability.

Earnings/Net Income

Despite the revenue gain, Rocket Lab’s financial performance deteriorated in Q2. The company reported a net loss of $66.41 million, representing a 59.5% increase in losses compared to $41.63 million in the prior-year quarter. On a per-share basis, losses widened to $0.13 from $0.08, a 62.5% increase in the loss per share. This marks the fifth consecutive year of losses for Rocket Lab during the same fiscal quarter, highlighting ongoing challenges in achieving profitability despite revenue growth.

Price Action

Rocket Lab’s stock showed mixed performance in recent sessions. Shares edged up 0.06% on the latest trading day but fell 3.72% over the past full week. However, the stock surged 14.12% month-to-date, indicating some investor optimism amid strategic progress.

Post Earnings Price Action Review

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CEO Commentary

CEO Peter Beck highlighted Rocket Lab’s Q2 achievements, including revenue exceeding guidance and five successful Electron launches. He emphasized the company’s leadership in the small launch market and growing international demand. Beck also underscored strategic initiatives such as the Neutron program, the Geost acquisition, and expansion into national security and Mars communications. He expressed confidence in the company’s long-term goals and its ability to scale operations while maintaining agility and vertical integration as key competitive advantages.

Guidance

Rocket Lab provided Q3 2025 revenue guidance of $145–$155 million, with GAAP and non-GAAP gross margins projected at 35–37% and 39–41%, respectively. Operating expenses are expected to range from $104 million to $109 million (GAAP) and $86 million to $91 million (non-GAAP). The company anticipates an adjusted EBITDA loss of $21–$23 million and elevated capital expenditures as it scales Neutron production. Cash consumption is expected to remain high through 2026, as Rocket Lab transitions from R&D to operational execution.

Additional News

On August 5, 2025, Rocket Lab reported a successful mission for its latest launch, reinforcing its reputation as a global leader in launch services and space systems. The mission marked another milestone in the company’s efforts to expand its launch cadence and meet growing demand from both commercial and government clients. The successful deployment further supports the company’s strategic focus on enhancing national security capabilities and expanding its portfolio of end-to-end space solutions. With ongoing momentum in mission execution and product development, Rocket Lab remains positioned to capitalize on emerging opportunities in the rapidly evolving space industry.