Rocket Lab (NASDAQ:RKLB) shares came under pressure after the space technology company reported quarterly results that highlighted strong revenue growth but disappointed Wall Street on earnings and its profitability outlook.
The company posted a loss of $0.08 per share, compared with analysts’ expectations for a loss of $0.06 per share, representing a 33.33% miss. The result renewed attention on Rocket Lab’s path towards sustainable profitability despite what the company described as a “record” quarter.
Shares fell around 8% in U.S. pre-market trading after declining 3.37% in the previous session to close at $80.04.
Rocket Lab margin guidance falls short of expectations
Profitability guidance emerged as a key concern for investors, with Rocket Lab forecasting a GAAP gross margin of 29% to 31% for the period. Analysts had been expecting approximately 37.6%.
The weaker margin outlook reflects the increasing contribution from lower-margin satellite platform sales, alongside the impact of integrating recent acquisitions.
The addition of Mynaric and Motiv also introduces greater operational complexity, which could place further pressure on margins in the near term as Rocket Lab incorporates the businesses into its broader operations.
Revenue and backlog underline strong demand
Despite the earnings and margin concerns, Rocket Lab’s quarterly revenue performance remained strong.
Revenue reached €234.06 million, up 62% and ahead of Wall Street’s €232.06 million forecast, indicating continued demand across the business.
Backlog increased 137% to €2.36 billion, with the company attributing much of that growth to its Space Systems business. The division generated €189.5 million in revenue, supported by satellite production and an initial contribution from Mynaric.
Adjusted EBITDA also performed better than anticipated, with a loss of 8.8 million compared with the expected loss range of 20 million to 26 million.
Rocket Lab’s third-quarter outlook provided another positive signal. The company expects revenue of $250 million to $265 million, above the consensus estimate of $237 million.
Neutron launch timing adds another uncertainty
Investors are also assessing the possibility of another delay to Rocket Lab’s Neutron rocket, potentially pushing its first flight into 2027.
Neutron, which is larger and more powerful than the company’s Electron rocket, remains scheduled to arrive at the launch pad during the fourth quarter. However, Rocket Lab stopped short of confirming that its first flight would still take place before the end of 2026.
The company had previously targeted a Neutron launch before year-end, but said “risks and uncertainties remain in the complex development cycle.”
The exact launch schedule will now depend on the results of booster testing and other development factors.
Despite the uncertainty surrounding Neutron’s debut, Rocket Lab announced that Kepler Communications has purchased a dedicated launch on the rocket, scheduled for no earlier than 2028.
Why Rocket Lab stock is under pressure
Rocket Lab’s latest results present investors with contrasting signals. Revenue, backlog and third-quarter sales guidance point to continued commercial momentum, while the smaller-than-expected adjusted EBITDA loss provides evidence of improving operating performance.
However, the earnings miss, weaker gross-margin guidance and integration costs associated with recent acquisitions have increased scrutiny of the company’s profitability trajectory.
Neutron represents another important variable. Progress on testing and greater clarity around the rocket’s first flight could become significant catalysts, while further delays may keep development execution and spending firmly in focus for Rocket Lab investors.
Rocket Lab stock price
