Rocket Lab USA, Inc.

Second-quarter 2026 revenue was a record $234 million, up 62% year over year and 16.8% sequentially. Space Systems revenue was $189.5 million, up 38.6% sequentially, and Launch Services revenue was $44.6 million, down 30% sequentially due to mix and accounting timing. GAAP gross margin was 36.1% and non-GAAP gross margin was 41.5%, both above guidance; GAAP EPS was a loss of $0.08 per share versus a loss of $0.07 in Q1. GAAP operating cash flow was a use of $84.1 million, non-GAAP free cash flow was a use of $110.1 million, and cash, cash equivalents, restricted cash and marketable securities ended at roughly $2.4 billion. Backlog ended Q2 at about $2.36 billion, with about 45.5% expected to convert to revenue within 12 months. For Q3 2026, management guided revenue to $250 million to $265 million, GAAP gross margin to 29% to 31%, non-GAAP gross margin to 35% to 37%, GAAP operating expenses to $143 million to $149 million, non-GAAP operating expenses to $121 million to $127 million, adjusted EBITDA loss to $17 million to $23 million, and net interest income to $21 million.

Peter Beck framed the quarter as an inflection point for Rocket Lab’s transition from launch-and-hardware into a broader space applications platform. He emphasized the strategic logic of the pending Iridium acquisition, saying it would combine launch, satellite manufacturing and a real space applications business with recurring revenue and rare spectrum. He was upbeat about demand, contract wins, and Neutron progress, but also stressed that the company is balancing speed to first flight with the need to reach flight 10 quickly and avoid requalification work.

Adam Spice focused on the financial quality of the quarter and the tradeoffs behind the numbers. He highlighted that revenue, gross margin and adjusted EBITDA all beat guidance, while Space Systems growth and backlog strength provided diversification beyond the inherently lumpy launch business. He also noted elevated cash use from Neutron tail production, infrastructure, and Mynaric supply chain replenishment, but said the quarter ended with roughly $2.4 billion in liquidity after $1.08 billion from the ATM equity offering, and that the company remains in a strong position to fund organic growth and acquisitions.

Analysts focused heavily on Neutron cadence, pricing, and whether demand will surge after first flight. Management said the key milestone is not just flight 1 but getting to flight 10 quickly, reiterated a 1, 3, 5 ramp concept, and said it sees more upside than downside on launch ASPs, including Neutron’s $50 million to $55 million target. Questions on Iridium centered on how Rocket Lab will accelerate growth and what the combination unlocks; management said the deal adds mission-critical constellation capability, strengthens its government and commercial toolkit, and opens up growth in PNT, IoT, direct-to-device, and other services. Analysts also asked about GHOST, HASTE pricing, and free cash flow; management said GHOST was customer-driven for mobile launch needs, HASTE pricing should stay consistent and could improve with rising demand, and free cash flow should remain pressured until after Neutron’s first successful test flight.