AI Takeaway
Rocket Lab (RKLB) delivered strong Q1 FY2026 results with revenue surging 63.5% YoY to $200.3M and gross margin expanding nearly 10 percentage points to 38.2%, while a major equity raise dramatically strengthened the balance sheet with cash reaching $1.21B and long-term debt slashed 89.3%.
Revenue
$200.35M
++63.46% YoY
EPS (Basic)
$-0.07
++41.67% YoY
Gross Margin
38.2%
++9.42% YoY
Operating Income
$-55.97M
++5.44% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 63.5% YoY to $200.3M in Q1 FY2026, up from $122.6M in Q1 FY2025, reflecting significant scaling across Rocket Lab's launch and space systems segments. This marks a meaningful inflection in top-line growth for the company.
Source: Source: 10-Q Income Statement, Q1 FY2026
Gross profit more than doubled YoY (+117.0%) to $76.5M, pushing gross margin from 28.8% to 38.2% — a 9.4 percentage point improvement. This suggests better cost absorption and pricing power as launch cadence and systems revenue scale.
Source: Source: 10-Q Income Statement, Q1 FY2026
Operating loss improved modestly to -$56.0M from -$59.2M YoY (+5.4%), even as R&D expense surged 46.1% to $80.5M and SG&A rose 32.1% to $51.9M, indicating the company is investing aggressively in future capabilities while slowly closing the gap to profitability.
Source: Source: 10-Q Income Statement, Q1 FY2026
2 more insights available
Upgrade to unlockRocket Lab continues to generate significant operating losses (-$56.0M in Q1 FY2026) and negative operating cash flow (-$50.3M). While the recent equity raise provides a substantial cash buffer of $1.21B, the company must demonstrate a credible path to profitability to avoid future dilutive capital raises.
Source: Source: 10-Q Income Statement & Cash Flow Statement, Q1 FY2026
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $-0.07 versus the $-0.08 analyst consensus — a +14.1% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $200.35M | $122.57M | +63.46% |
Cost of Revenue | $123.86M | $87.32M | +41.84% |
Gross Profit | $76.49M | $35.25M | +117.02% |
Operating Income | $-55.97M | $-59.19M | +5.44% |
Net Income | $-45.02M | $-60.62M | +25.73% |
EPS (Basic) | $-0.07 | $-0.12 | +41.67% |
EPS (Diluted) | $-0.07 | $-0.12 | +41.67% |
R&D Expense | $80.51M | $55.11M | +46.10% |
SG&A Expense | $51.95M | $39.33M | +32.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $2.82B | $1.25B | +124.70% |
Current Assets | $1.8B | $724.85M | +148.38% |
Total Liabilities | $555.57M | $823.68M | -32.55% |
Current Liabilities | $402.35M | $348.12M | +15.58% |
Stockholders' Equity | $2.26B | $431.29M | +425.02% |
Cash & Equivalents | $1.21B | $303.15M | +297.66% |
Long-Term Debt | $36.87M | $345.93M | -89.34% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-50.33M | $-54.23M | +7.18% |
Investing Cash Flow | $-35.72M | $-28.6M | -24.89% |
Financing Cash Flow | $463.29M | $115.5M | +301.11% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 38.2% | 28.8% | +9.42% |
Operating Margin | -27.9% | -48.3% | +20.35% |
Net Margin | -22.5% | — | — |
ROE | -2.0% | — | — |
ROA | -1.6% | — | — |
Current Ratio | $4.475 | — | — |
Debt to Equity | $0.245 | — | — |
Rocket Lab's revenue grew 63.5% year-over-year to $200.3M in Q1 FY2026, up from $122.6M in Q1 FY2025. This strong growth reflects scaling across both its launch services and space systems segments.
No, Rocket Lab is not yet profitable — it reported a net loss of $45.0M in Q1 FY2026, though this is an improvement from the -$60.6M net loss in Q1 FY2025. The company continues to invest heavily in R&D ($80.5M) and SG&A ($51.9M), which together exceed gross profit.
Rocket Lab's balance sheet is significantly stronger following a major equity raise, with cash and equivalents reaching $1.21B and long-term debt reduced 89.3% to just $36.9M. The current ratio of 4.47x and debt-to-equity of 0.25x indicate a well-capitalized, low-leverage position with substantial runway.
Yes, Rocket Lab's gross margin expanded significantly to 38.2% in Q1 FY2026, up from 28.8% in Q1 FY2025 — a nearly 10 percentage point improvement. Gross profit more than doubled YoY to $76.5M, signaling improving unit economics as the business scales.
The primary risks include sustained operating losses (-$56.0M in Q1 FY2026) and negative operating cash flow (-$50.3M), which require continued capital raises that could dilute shareholders. Additionally, the company's heavy R&D spending ($80.5M, up 46.1% YoY) and high operating expense base (combined R&D and SG&A of $132.5M vs. $200.3M revenue) create execution pressure to scale revenue fast enough to achieve profitability.