Rocket Lab 2025 Q3 Earnings 64.8% Reduction in Net Loss

Rocket Lab (RKLB) reported fiscal 2025 Q3 earnings on Nov 11, 2025, with revenue rising 48% to $155.08 million and a 64.8% reduction in net loss. The company exceeded revenue expectations and narrowed its per-share loss, though it remains unprofitable for the fifth consecutive year. Guidance for Q4 revenue of $170–180 million and improved gross margins signals cautious optimism.

Revenue

Rocket Lab’s total revenue surged 48% year-over-year to $155.08 million, driven by robust performance in its Space Systems segment, which contributed $114.16 million. Launch Services added $40.92 million, reflecting strong demand for satellite deployment and propulsion solutions. The combined revenue growth underscores expanding market share in both commercial and defense aerospace sectors.

Earnings/Net Income

The company narrowed its net loss to $-18.26 million in Q3 2025, a 64.8% improvement from $-51.94 million in the prior-year period. Earnings per share (EPS) improved from a loss of $0.10 to $0.03, representing a 70% reduction in per-share losses. However, Rocket Lab has sustained losses for five consecutive years, highlighting ongoing challenges in achieving profitability despite operational momentum.

Post-Earnings Price Action Review

Rocket Lab’s stock price declined sharply post-earnings, with an 8.50% drop in the latest trading day, a 9.42% decline over the past week, and a 20.26% slump month-to-date. The selloff contrasts with the company’s strong revenue and margin improvements, reflecting investor skepticism about the sustainability of its financial turnaround.

CEO Commentary

CEO Sir Peter Beck emphasized record Q3 revenue and a 37% GAAP gross margin, driven by 17 Electron launch contracts and two HASTE missions. Strategic priorities include advancing Neutron rocket development, expanding end-to-end capabilities via acquisitions (Geost, Mynaric restructure), and leveraging $1+ billion in liquidity post-ATM offering. The CEO remains optimistic about long-term growth, citing robust backlog and alignment with defense programs.

Guidance

Rocket Lab guided Q4 2025 revenue of $170–180 million, with GAAP gross margins of 37–39% and non-GAAP gross margins of 43–45%. Operating expenses are projected at $122–128 million (GAAP) and $107–113 million (non-GAAP), with adjusted EBITDA losses expected between $23–29 million. Strong liquidity and a $1+ billion cash balance support near-term operational flexibility.

Additional News

Rocket Lab completed the $325 million acquisition of Geost, enhancing its electro-optical and infrared sensor capabilities for defense programs. The deal aligns with strategic goals to expand end-to-end space solutions. Additionally, insider sales totaled $201.3 million over six months, with CEO Peter Beck selling 2.5 million shares. While no dividend or buyback announcements were made, the company’s $807.88 million cash reserve and $1+ billion liquidity position remain critical to funding growth initiatives.