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Quarterly Report - May 8, 2025
Q1 Revenue: $122.6M (+32% YoY), gross margin 28.8% (+2.7pp YoY)
Financial Metrics
Brief
Rocket Lab reported Q1 revenue of $122.6M, up 32% YoY driven by 45% growth in Space Systems to $87.0M and 9% in Launch Services to $35.6M from 5 Electron launches. Gross margin improved to 28.8% from 26.1% YoY amid higher volumes. No guidance changes noted; backlog stable at $1.1B.
Detailed Brief
Financially, Q1 revenue rose 32% YoY to $122.6M, with Space Systems contributing $87.0M (71% of total) up 45% on satellite manufacturing, and Launch Services $35.6M up 9% from higher cadence (5 vs 4 launches). Gross profit increased to $35.2M (28.8% margin, +270bps YoY), but operating loss widened to $59.2M (-48.3% margin) due to R&D up 43% to $55.1M (Neutron progress) and SG&A up 37% to $39.3M. Net loss $60.6M; OCF -$54.2M; cash $303M + $209M marketable securities. Debt $435M principal.
Operationally, 5 Electron launches (vs 4 YoY); backlog $1.1B (56% in 12mo); key customers Government (28%), Kineis (10%). Capex $28.7M on infrastructure; ATM raised $90.7M net; $25M Trinity draw. Neutron development advances with engine testing.
Key Telemetry
- • Revenue: $122.6M (+32% YoY), Space Systems $87.0M (+45%), Launch $35.6M (+9%) from 5 launches
- • Gross Margin: 28.8% (+2.7pp YoY) on volume efficiencies
- • Operating Loss: $59.2M (-48.3%), R&D +43% to $55.1M on Neutron
- • Backlog: $1.1B stable QoQ, 56% in 12 months
- • Cash: $303M (+12% QoQ), OCF -$54M, FCF ~-$83M
Impact Vector
Strong revenue growth and margin expansion signal scaling in high-margin Space Systems, supporting path to profitability as Neutron nears deployment (targeted 2025 debut) to unlock constellation demand. $1.1B backlog ensures visibility; $512M liquidity funds capex/runway >18mo despite burn, but dilution from $91M ATM and CEO preferred exchange warrants watch. Competitive edge in small/medium launches vs SpaceX; risks include Neutron delays, tariff impacts on imports, customer concentration (Govt/Kineis). Catalysts: launch cadence ramp, Neutron first flight; buy for growth sustainability.