AI Takeaway
Rocket Lab (RKLB) delivered strong FY2025 revenue growth of 38% to $601.8M and dramatically improved gross margins to 34.4%, but operating losses widened to -$228.8M as R&D spending surged 55% to fund Neutron rocket development, while a major equity raise boosted cash to $828.7M and stockholders' equity by 350%.
Revenue
$601.8M
++37.96% YoY
EPS (Basic)
$-0.37
++2.63% YoY
Gross Margin
34.4%
++7.80% YoY
Operating Income
$-228.84M
-20.57% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Revenue grew 38.0% year-over-year from $436.2M to $601.8M in FY2025, reflecting continued scaling of Electron launch services and expansion of the Space Systems segment, demonstrating strong commercial demand across both business lines.
Source: Source: 10-K Income Statement, Financial Data
Gross margin expanded significantly from 26.6% to 34.4% (+7.8 percentage points), with gross profit surging 78.4% to $207.2M, indicating that revenue is growing faster than direct costs and that the business is achieving better operating leverage on its existing products.
Source: Source: 10-K Income Statement, Financial Data
R&D expenses jumped 55.2% year-over-year to $270.7M, representing the single largest operating cost driver and reflecting heavy investment in the Neutron medium-lift rocket program, which is central to the company's long-term growth strategy.
Source: Source: 10-K Income Statement, Financial Data
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Upgrade to unlockRKLB generated an operating loss of -$228.8M and operating cash outflow of -$165.5M in FY2025, with no clear near-term path to profitability given accelerating R&D and SG&A spending. The company remains dependent on capital markets to fund operations, creating dilution risk for existing shareholders.
Source: Source: 10-K Income Statement & Cash Flow, Financial Data
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Upgrade to unlockReported EPS of $-0.09 versus the $-0.09 analyst consensus — a +4.5% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $601.8M | $436.21M | +37.96% |
Cost of Revenue | $394.62M | $320.06M | +23.29% |
Gross Profit | $207.18M | $116.15M | +78.38% |
Operating Income | $-228.84M | $-189.8M | -20.57% |
Net Income | $-198.21M | $-190.18M | -4.22% |
EPS (Basic) | $-0.37 | $-0.38 | +2.63% |
EPS (Diluted) | $-0.37 | $-0.38 | +2.63% |
R&D Expense | $270.72M | $174.39M | +55.23% |
SG&A Expense | $165.3M | $131.56M | +25.65% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $2.32B | $1.18B | +96.27% |
Current Assets | $1.37B | $692.62M | +97.16% |
Total Liabilities | $602.62M | $801.89M | -24.85% |
Current Liabilities | $334.48M | $339.52M | -1.49% |
Stockholders' Equity | $1.72B | $382.45M | +350.21% |
Cash & Equivalents | $828.66M | $271.04M | +205.73% |
Long-Term Debt | $152.4M | $345.39M | -55.88% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-165.52M | $-48.89M | -238.56% |
Investing Cash Flow | $-347.4M | $-98.33M | -253.31% |
Financing Cash Flow | $1.07B | $256.68M | +317.35% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 34.4% | 26.6% | +7.80% |
Operating Margin | -38.0% | -43.5% | +5.49% |
Net Margin | -32.9% | — | — |
ROE | -11.5% | — | — |
ROA | -8.5% | — | — |
Current Ratio | $4.083 | — | — |
Debt to Equity | $0.35 | — | — |
Rocket Lab grew FY2025 revenue by 38.0% year-over-year to $601.8M, up from $436.2M in the prior year. This growth was driven by increased Electron launch activity and expansion of the Space Systems segment, reflecting strong commercial demand across both business lines.
The headline positives were 38% revenue growth to $601.8M and gross margin expansion to 34.4% from 26.6%. However, operating losses widened to -$228.8M as R&D spending surged 55% to $270.7M for Neutron development, and the company raised over $1B in equity, boosting cash to $828.7M.
No, Rocket Lab is not yet profitable. The company reported a net loss of -$198.2M and an operating loss of -$228.8M in FY2025, with negative operating cash flow of -$165.5M. The company is in a heavy investment phase, primarily funding development of its Neutron medium-lift rocket.
Key risks include sustained operating losses and cash burn requiring ongoing capital raises, execution risk on the Neutron rocket program which consumed the majority of the $270.7M R&D budget, and shareholder dilution from equity issuances that generated over $1B in financing cash flows during FY2025.
RKLB's balance sheet is strong following a major equity raise, with cash of $828.7M, a current ratio of 4.08, and a low debt-to-equity ratio of 0.35 after reducing long-term debt by 55.9% to $152.4M. However, the company continues to burn cash operationally at -$165.5M per year, making its liquidity runway a key metric to monitor.