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Annual Report - February 27, 2025
FY24 Revenue: $436M (+78% YoY), gross margin 26.6% (+5.6pp YoY)
Financial Metrics
Brief
Rocket Lab reported FY24 revenue of $436M, up 78% YoY driven by Space Systems growth and higher Electron launch cadence (16 vs 10). Gross margins improved to 26.6% (+5.6pp YoY) from scale efficiencies. Operating loss narrowed to -43.6% margin amid Neutron investments; backlog reached $1.1B.
Detailed Brief
Financial performance: FY24 revenue grew 78% YoY to $436M ($125M Launch Services +$54M; $311M Space Systems +$138M), with gross profit $116M (26.6% margin vs 21.0% YoY) reflecting production scale and mix shift. Operating loss $190M (-44% margin) widened slightly YoY due to R&D (+46% to $174M for Neutron/spacecraft) and SG&A (+19%). Cash $271M + $209M marketable securities; debt $413M (incl. $355M conv. notes). Operational drivers: 16 Electron launches (2nd most frequent U.S. orbital rocket), >200 spacecraft deployed lifetime; Neutron debut H2 2025 targeted; backlog $1.1B (+69% YoY top 5 customers). Headcount +25% to >2,100; no restatements or material weaknesses.
Key Telemetry
- • Revenue: $436M (+78% YoY) from Space Systems (+80%) and Launches (+74%, 16 missions)
- • Gross Margin: 26.6% (+5.6pp YoY) via scale, cost efficiencies
- • Backlog: $1.1B (Launches $386M, Space Sys $681M)
- • Cash: $271M equiv + $209M marketable sec; debt/equity ~1.1x
- • Operating Loss: $190M (-44% margin) on Neutron R&D $174M (+46%)
Impact Vector
Strong revenue growth and margin expansion signal path to profitability via scale in Space Systems and launches, with $1.1B backlog supporting sustainability. Neutron H2 2025 debut key catalyst for medium-lift/constellation revenue; $480M liquidity funds development amid $190M loss. Competitive positioning solid (2nd U.S. orbital launcher); risks include Neutron delays, cash burn (-$49M OCF), customer concentration (top5 51% rev). Investors: Buy for growth potential if execution holds.