Rocket Lab Reports Q2 Results: Is the Bull Thesis Still Intact?
Rocket Lab USA, Inc. (NASDAQ: RKLB) has been one of the standout names in the aerospace industry, riding a wave of strong performance and growing investor enthusiasm. The stock has surged in recent months, cementing its position as a leader in small satellite launches and advanced space systems.
With its Electron rocket now proven one of the market's most reliable vehicles and the Neutron program making steady progress, the company has built a compelling long-term growth story.
The release of its latest earnings was the next major catalyst, with investors watching closely to see if the momentum could continue or if cracks might start to appear.
Strong Q2 Results and Operational Progress
On August 7, Rocket Lab reported Q2 2025 revenue of $144.5 million, up 36% year-over-year (YOY) and 17.9% from Q1. This figure exceeded its guidance range of $130–$140 million. Growth was fueled by increased launch activity, including five Electron missions in the quarter, and continued expansion in satellite manufacturing and components.
The company also achieved notable margin gains, with GAAP gross margin rising to 32.1% and non-GAAP gross margin climbing to 36.9%, both significantly improving from last year.
Not everything was perfect, though. The company’s net losses widened 59.5% to $66.4 million, marking the fifth consecutive year in the red. For Q2, Rocket Lab reported earnings per share (EPS) of negative 13 cents, missing the consensus estimates of negative seven cents.
However, management emphasized that these losses reflect ongoing investment in the Neutron rocket program and strategic expansions to position Rocket Lab for long-term growth. The backlog remains robust at $1 billion, evenly split between launch and space systems, and features a healthy mix of government and commercial contracts.
Strategic Moves and Neutron Development
A key highlight from the quarter was the pending acquisition of Geost, a $275 million cash-and-equity deal expected to close soon following antitrust clearance. Geost’s expertise in electro-optical and infrared sensors will bolster Rocket Lab’s capabilities in missile warning, tracking, and space domain awareness, opening new high-value opportunities in national security.
Operationally, Rocket Lab reached a significant milestone by proving a rapid launch cadence, completing two missions just two days apart from its New Zealand site.
With 69 Electron launches completed to date, the company remains on track for more than 20 launches in 2025. Meanwhile, the Neutron program continues to advance, with Stage 2 successfully cryogenically proofed and en route to Launch Complex 3 in Virginia ahead of its debut launch, targeted before the end of the year.
When asked what a successful launch of Neutron might be, during the earnings call, CEO Sir Peter Beck had to say: “You're not going to hear some rubbish about just clearing the pad as success. For us, a successful launch means getting to orbit and ensuring the vehicle is ready to scale." A response RKLB investors surely would have liked.
Looking Ahead, Has the Bullish Thesis Changed?
For Q3 2025, Rocket Lab is guiding for revenue between $145 million and $155 million, with further margin expansion expected.
Beyond the near term, management stressed that the Neutron program is shifting from R&D into production, with supply chains, manufacturing infrastructure, and launch facilities already in place to support scalable operations.
The long-term thesis for Rocket Lab appears firmly intact. While the company continues to post annual losses, it is steadily expanding its capabilities across launch, spacecraft, and payload integration.
This diversification, especially with national security and constellation deployment contracts, gives Rocket Lab a unique position as a one-stop provider. The road ahead will still have its challenges, but for bullish investors, the latest results reinforce the view that Rocket Lab is not just competing in the new space race; it’s helping lead it.
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