Executive Summary

Record Q3: Revenue $155.1m (+48% YoY) at record GAAP gross margin 37%; non‑GAAP gross margin 41.9% . Space Systems drove growth; Launch declined sequentially on fewer missions .
Beat vs Street: Revenue $151.7m* consensus; EPS −$0.06* consensus; actual Revenue $155.1m and EPS −$0.03, a clear beat on both. EPS benefited from a $41.1m tax benefit tied to Geost purchase accounting . Values retrieved from S&P Global.
Mix and one‑offs helped margins: Transition to over‑time accounting on certain HASTE missions and a canceled Electron mission recognized at ~100% margin (<$5m) boosted Q3 gross margin; underlying launch ASP and absorption improve into Q4 .
Outlook: Q4 guidance calls for $170–$180m revenue, GAAP GM 37–39%, non‑GAAP GM 43–45%, and Adjusted EBITDA loss $23–$29m; Launch mix and cadence expected to lift margins further .
Strategic momentum: 17 Electron launches booked in Q3 (record), backlog ~$1.1bn (57% 12‑mo conversion), >$1bn liquidity post‑ATM, closed Geost (up to $325m); Neutron to arrive at LC‑3 in Q1 2026 with first launch thereafter pending qual/acceptance testing .

What Went Well and What Went Wrong

What Went Well

Strong top‑line and margin execution: Revenue $155.1m (+48% YoY), GAAP GM 37% at the high end, non‑GAAP GM 41.9% above guide; sequential revenue +7.3% .
Commercial traction and backlog: 17 Electron launch contracts signed in Q3; total backlog ~$1.1bn with 57% expected in next 12 months . CEO: “We’ve once again delivered record revenue… at record GAAP gross margin of 37%” .
Liquidity and strategic M&A: >$1bn liquidity after ATM; closed Geost to add EO/IR payloads; Mynaric restructure progresses, enabling vertical integration .

What Went Wrong

Profitability below internal targets: Adjusted EBITDA loss −$26.3m, below guide (−$21m to −$23m) on higher Neutron development spend; GAAP and non‑GAAP opex exceeded guidance .
Launch Services down sequentially: Launch revenue $40.9m (−12.3% QoQ) due to customer spacecraft delivery delays; segment reliance on cadence continues .
One‑time margin tailwinds: Q3 GM benefited from rev rec transition on HASTE and a contract closeout recognized at ~100% margin (<$5m); these are non‑recurring .

Financial Results

Vs. Wall Street Consensus (S&P Global)

Metric	Q3 2025 Consensus	Q3 2025 Actual	Surprise
Revenue ($m)	151.7*	155.1	+3.4
EPS (GAAP, $)	-0.059*	-0.030	+0.029

Values retrieved from S&P Global.

Year-over-Year Comparison (Q3 2025 vs Q3 2024)

Metric	Q3 2024	Q3 2025	YoY Change
Revenue ($m)	104.8	155.1	+48%
GAAP Gross Margin (%)	26.7% (calc: 27.996/104.808)	37.0%	+1,030 bps
Non‑GAAP Gross Margin (%)	31.3%	41.9%	+1,060 bps
GAAP EPS ($)	-0.10	-0.03	+$0.07
Adjusted EBITDA ($m)	-30.9	-26.3	+$4.6

Sequential Comparison (Q3 2025 vs Q2 2025)

Metric	Q2 2025	Q3 2025	QoQ Change
Revenue ($m)	144.5	155.1	+7.3%
GAAP Gross Margin (%)	32.1%	37.0%	+490 bps
Non‑GAAP Gross Margin (%)	36.9%	41.9%	+500 bps
GAAP EPS ($)	-0.13	-0.03	+$0.10
Adjusted EBITDA ($m)	-27.6	-26.3	+$1.3

Segment Breakdown

Segment Revenue ($m)	Q2 2025	Q3 2025	QoQ
Space Systems	97.9	114.2	+16.7%
Launch Services	56.6	40.9	-12.3%

Additional KPIs

KPI	Q3 2025	Notes
Product Revenue ($m)	104.0	From 8‑K
Service Revenue ($m)	51.0	From 8‑K
Backlog ($bn)	~1.1	~57% converts within 12 months
Electron bookings signed (count)	17	Record quarter
YTD Electron launches (count)	16	Set to surpass annual record
Cash & Cash Equivalents ($m)	807.9	Sep 30, 2025
Marketable Securities Current ($m)	168.9	Sep 30, 2025
Liquidity commentary	>$1bn	Post ATM
Basic & Diluted Shares (WASO, m)	528.7	Q3 2025

Cash Flow and Balance Sheet Highlights

Q3 tax benefit $41.1m from partial valuation allowance release tied to GEOST DTLs .
Operating cash flow use Q3: −$23.5m; non‑GAAP free cash flow use: −$69.4m; Capex $45.9m .
Total assets $2.22bn; Equity $1.28bn; Convertible notes (net) $347.0m .

Guidance Changes

Metric	Period	Previous Guidance	Current	Change
Revenue ($m)	Q3 2025	145–155	Actual 155.1	At high end
GAAP Gross Margin (%)	Q3 2025	35–37	Actual 37.0	At high end
Non‑GAAP Gross Margin (%)	Q3 2025	39–41	Actual 41.9	Above
GAAP Opex ($m)	Q3 2025	104–109	Actual 116.3	Above
Adjusted EBITDA ($m)	Q3 2025	−21 to −23	Actual −26.3	Below
Revenue ($m)	Q4 2025	—	170–180	New
GAAP Gross Margin (%)	Q4 2025	—	37–39	New
Non‑GAAP Gross Margin (%)	Q4 2025	—	43–45	New
GAAP Opex ($m)	Q4 2025	—	122–128	New
Non‑GAAP Opex ($m)	Q4 2025	—	107–113	New
Adj. EBITDA ($m)	Q4 2025	—	−23 to −29	New
Shares (m)	Q4 2025	—	~571	New

Implications: Q4 guide implies further margin improvement driven by launch mix/ASP and overhead absorption; opex elevated on Neutron flight one prep with shift from R&D to flight two inventory .

Earnings Call Themes & Trends

Topic	Q1 2025 (prior)	Q2 2025 (prior)	Q3 2025 (current)	Trend
Neutron schedule & spend	Target 2H25 launch; heavy parallel testing; on‑ramp to NSSL LANE 1; adding second Archimedes test cell	Pushing hard for year‑end; LC‑3 opening Aug 28; engines every ~11 days; program capex ramp	Arrive LC‑3 in Q1 2026; first launch thereafter; cumulative spend est. ~$360m by 2025‑end; approaching peak R&D	Schedule shifted right; spend higher but nearing peak
Launch cadence & ASP	Q1 lower ASP; expect FY25 ASP expansion and GM lift	Q2 launch ASP up; cadence improved; guide further margin gains	Q3 Launch revenue down on payload delays; Q4 cadence/mix to improve margins	Mixed in Q3; strengthening into Q4
HASTE revenue recognition	Noted pipeline and framework wins (US/UK)	Expect 3 HASTE launches in 2H; ASP tailwind	Transition to over‑time for certain HASTE; margin tailwind	Evolving model, more predictable rev
Backlog & bookings	Backlog $1.067bn; Launch backlog up YoY	Backlog ~$1.0bn; Launch share rising	Backlog ~$1.1bn; 17 Electron bookings; 57% 12‑mo conversion	Strengthening
M&A & vertical integration	Announced intent to acquire Mynaric; expanding EU footprint	GEOST closing imminent; ATM to fund M&A	Closed Geost; Mynaric restructure completed; >$1bn liquidity	Executing
Government shutdown impact	N/A	N/A	Limited impact; cash receipts continue	Manageable

Management Commentary

Strategic positioning: “Our position as a leading end‑to‑end space company has never been stronger… from $35m five years ago to implied ~$600m this year” .
Margin drivers: “Sequential improvement… driven by… over‑time recognition for certain HASTE missions, paired with revenue recognition of an Electron mission cancellation… at 100% margin” .
Neutron philosophy: “Our aim is to make it to orbit on the first try… we won’t rush to the pad with an unproven product” .
Backlog durability: “We ended Q3 with approximately $1.1 billion… expect ~57% to convert in the next 12 months” .

Q&A Highlights

HASTE/contract accounting: CFO quantified a contract closeout of “a little under $5m,” plus margin uplift from over‑time transition; the Q4 margin improvement holds even without those one‑offs .
Neutron cadence & budget: First flight after arrival at LC‑3 in Q1 2026; cadence roughly three missions in 12 months post test; cumulative R&D+capex through 2025 ~ $360m (above original $250–$300m) .
NSSL and SDA: On‑ramp to NSSL LANE 1; SDA Tranche 2 on track (rev rec 10/40/40/10 profile); Tranche 3 timing delayed by shutdown but confidence maintained .
Liquidity uses: ATM proceeds (~$468.8m in Q3) aimed at M&A (e.g., Mynaric) and working capital; liquidity just over $1bn .
Government shutdown: No significant disruption; large SDA payment received; monitoring priorities .

Estimates Context

Beat on both Revenue and EPS: Actual Revenue $155.1m vs $151.7m*; EPS −$0.03 vs −$0.059*, aided by $41.1m tax benefit . Values retrieved from S&P Global.
Forward implications: Q4 guidance implies sequential revenue growth (+12.8% at midpoint) and margin expansion; Street may raise FY revenue and gross margin trajectories, while trimming near‑term Adjusted EBITDA for higher Neutron opex .

Key Takeaways for Investors

Operating leverage emerging: Multi‑quarter gross margin expansion (28.8% → 32.1% → 37.0%) demonstrates improving mix, ASPs, and absorption; Q4 guide adds confidence .
Quality of margin: Q3 benefited from accounting/mix one‑offs; watch Q4 to validate underlying launch margin improvement absent those items .
Neutron is the swing factor: Schedule shift to first launch after Q1 2026 arrival; cumulative spend trending higher but near peak; success would unlock launch TAM and bookings .
Demand backdrop strong: Record 17 Electron bookings in Q3, growing international/government exposure; SDA and Golden Dome create multi‑year opportunities .
Balance sheet optionality: >$1bn liquidity supports vertical integration and M&A to scale payloads and comms (Geost/Mynaric) .
Near‑term trading setup: Positive on Q4 cadence/margins and backlog conversion (57% in 12 months); monitor Adjusted EBITDA vs guide and opex discipline .
Medium‑term thesis: Dual engines of growth (Space Systems + Launch); Neutron success could expand margins toward management’s long‑term targets (Launch 45–50% non‑GAAP GM; Space Systems low‑40s) .

Appendix: Additional Context and Press Releases (Q3 period and subsequent updates)

Opened Launch Complex 3 (Virginia) on Aug 28; critical for Neutron’s path to pad .
70th Electron mission successfully launched Aug 24 .
Multiple international contracts and mission schedules announced across Oct–Nov, reinforcing demand trajectory .

Notes and Citations:

All company results and commentary are sourced from Rocket Lab’s Q3 2025 8‑K earnings release and earnings call transcripts, as cited: .
Prior quarter comparisons from Q2 and Q1 2025 calls: .
Revenue/EPS consensus from S&P Global via tool; values marked with asterisks and sourced as “Values retrieved from S&P Global.”

Rocket Lab Corp (RKLB)·Q3 2025 Earnings Summary