Rocket Lab (NASDAQ:RKLB) Announces Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Rocket Lab (NASDAQ:RKLB) posted its earnings results on Thursday. The rocket manufacturer reported ($0.09) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.04), FiscalAI reports. The firm had revenue of $179.65 million for the quarter, compared to analyst estimates of $178.18 million. Rocket Lab had a negative net margin of 35.64% and a negative return on equity of 27.26%. The company’s revenue for the quarter was up 35.7% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.10) earnings per share.

Here are the key takeaways from Rocket Lab’s conference call:

• Rocket Lab reported a record year with $602M revenue in 2025 (up 38% YoY), a Q4 record of $180M, record gross margins (Q4 GAAP 38%, non‑GAAP 44%), and a backlog of $1.85B, demonstrating strong top‑line growth and margin expansion.
• The company won the largest contract in its history—an $816M SDA Tranche 3 Tracking Layer award (bringing SDA awards to >$1.3B) and sees additional subsystem capture opportunities, with recent acquisitions like Geost cited as instrumental in securing the work.
• Neutron development hit a setback when a Stage 1 tank ruptured during qualification due to a manufacturing defect in a hand‑laid part; production has shifted to an AFP process and launch timing was moved to a targeted Q4 2026, with R&D and testing intensity (and associated costs) elevated as a result.
• Operational execution remained strong—Rocket Lab launched a company‑record 21 missions in 2025 (seven in Q4), expanded HASTE hypersonic testing, and added 30+ new launches to the manifest, including multi‑launch deals such as BlackSky and national security customers.
• Liquidity sits near $1.1B (including $280.6M from ATM sales) and the company guided Q1 2026 revenue to $185–$200M, but warned of continued negative free cash flow and elevated capex driven by Neutron and SDA program investments.

Rocket Lab Price Performance

Shares of RKLB traded up $2.45 during trading hours on Thursday, hitting $72.65. 18,144,465 shares of the company were exchanged, compared to its average volume of 16,382,059. Rocket Lab has a one year low of $14.71 and a one year high of $99.58. The company has a market capitalization of $38.81 billion, a PE ratio of -191.18 and a beta of 2.16. The company has a debt-to-equity ratio of 0.32, a current ratio of 3.18 and a quick ratio of 2.83. The firm has a fifty day simple moving average of $78.14 and a 200-day simple moving average of $60.83.

Rocket Lab News Summary

Here are the key news stories impacting Rocket Lab this week:

• Positive Sentiment: Reported record results: Rocket Lab posted record Q4 revenue (~$180M) and a record FY2025 revenue of $602M, and said backlog grew ~73% year‑over‑year to $1.85B — data that supports future revenue visibility and likely underpins the rally. Read More.
• Positive Sentiment: Strong commercial wins: secured a multi‑launch contract with BlackSky for four dedicated Electron missions, reinforcing launch demand and recurring revenue opportunity. Read More.
• Positive Sentiment: Expanded in‑house capabilities via M&A and facilities: completed acquisition of Optical Support, Inc. (optics) and acquired Precision Components Ltd to add precision machining capacity — both strengthen vertical integration and supply‑chain control for spacecraft/payload programs. Read More. Read More.
• Positive Sentiment: New product roadmap: introduced advanced silicon solar arrays (targeting space‑based data centers) and highlighted CHIPS Act support — positions Rocket Lab in growing space power/constellation markets and diversifies revenue streams. Read More.
• Neutral Sentiment: Guidance mixed: management guided Q1 revenue to $185–$200M (strong absolute growth), but some market commentary parsed the cadence/guidance as less bullish versus elevated expectations — a near‑term driver of volatility. Read More.
• Negative Sentiment: EPS miss and continuing losses: reported GAAP loss of $0.09 vs. consensus ~($0.05); negative margins and ROE highlight that growth is not yet translating to profitability and may cap multiple expansion. Read More.
• Negative Sentiment: Neutron timing risk and other execution concerns: the Neutron medium‑lift vehicle’s first launch has slipped to late‑2026, and program timing remains a headline risk that can pressure the stock if further delays occur. Read More.
• Negative Sentiment: Insider selling and valuation scrutiny: disclosures and third‑party data show significant insider sales and a premium valuation that keep some investors cautious despite growth. Read More.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on RKLB. Bank of America increased their price objective on Rocket Lab from $60.00 to $120.00 and gave the stock a “buy” rating in a report on Tuesday, January 20th. Zacks Research lowered Rocket Lab from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, February 10th. Weiss Ratings reissued a “sell (d-)” rating on shares of Rocket Lab in a research note on Thursday, January 22nd. Morgan Stanley upgraded shares of Rocket Lab from an “equal weight” rating to an “overweight” rating and lifted their price objective for the company from $67.00 to $105.00 in a research note on Friday, January 16th. Finally, Citigroup reaffirmed a “market perform” rating on shares of Rocket Lab in a report on Wednesday, November 12th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $72.92.

Insider Transactions at Rocket Lab

In other Rocket Lab news, Director Nina Armagno sold 27,314 shares of the business’s stock in a transaction dated Friday, December 19th. The stock was sold at an average price of $68.21, for a total transaction of $1,863,087.94. Following the sale, the director owned 108,940 shares in the company, valued at approximately $7,430,797.40. The trade was a 20.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Frank Klein sold 100,000 shares of the company’s stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $72.95, for a total transaction of $7,295,000.00. Following the sale, the insider directly owned 1,169,487 shares of the company’s stock, valued at $85,314,076.65. This represents a 7.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 4,138,979 shares of company stock worth $265,048,346 in the last three months. Insiders own 11.90% of the company’s stock.

Hedge Funds Weigh In On Rocket Lab

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RKLB. Alliancebernstein L.P. increased its position in Rocket Lab by 818.8% in the 3rd quarter. Alliancebernstein L.P. now owns 2,190,132 shares of the rocket manufacturer’s stock worth $104,929,000 after purchasing an additional 1,951,755 shares during the last quarter. Amundi increased its stake in shares of Rocket Lab by 308.4% during the 3rd quarter. Amundi now owns 2,301,568 shares of the rocket manufacturer’s stock worth $110,268,000 after purchasing an additional 1,738,038 shares during the last quarter. State Street Corp lifted its stake in shares of Rocket Lab by 13.6% in the 3rd quarter. State Street Corp now owns 12,399,571 shares of the rocket manufacturer’s stock valued at $594,063,000 after purchasing an additional 1,487,237 shares during the last quarter. Deutsche Bank AG lifted its stake in shares of Rocket Lab by 174.5% in the 4th quarter. Deutsche Bank AG now owns 2,336,845 shares of the rocket manufacturer’s stock valued at $163,018,000 after purchasing an additional 1,485,621 shares during the last quarter. Finally, Renaissance Technologies LLC acquired a new position in Rocket Lab during the fourth quarter worth $63,837,000. Institutional investors and hedge funds own 71.78% of the company’s stock.

About Rocket Lab

Rocket Lab is an aerospace company that provides launch services, spacecraft, and space systems for commercial and government customers. The company’s primary launch vehicle is Electron, a small-lift orbital rocket designed to deploy small satellites and rideshare payloads to low Earth orbit. Rocket Lab also develops and manufactures the Rutherford engine, noted for its electric-pump-fed design and additive-manufactured components, which powers Electron and supports the company’s propulsion capabilities.