Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Rocket Lab's fiscal second quarter of 2026 was defined by a sharp acceleration in space systems revenue, which more than doubled year-over-year, driven by satellite manufacturing and recent acquisitions. Management attributed the overall revenue growth primarily to this segment, which offset a modest decline in launch services caused by revenue recognition timing on HASTE missions. While the net loss narrowed significantly, reflecting improved operating leverage, the company continued to invest heavily in Neutron development and acquisitions. Backlog reached a record $2.4 billion, providing strong future revenue visibility, but the pending $8 billion acquisition of Iridium introduces substantial execution and financial risks.
Revenue
$234.07M
+61.99% YoY
EPS (Diluted)
-$0.08
+38.46% YoY
Gross Margin
36.1%
+4.0 pts YoY
Operating Income
-$57.51M
+3.56% YoY
Source: SEC XBRL
Rocket Lab (RKLB) reported Q2 FY2026 revenue of $234.07M, up 62.0% year over year. Operating margin was -24.6%, against -41.3% a year earlier. RKLB's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | -0.03 | -0.08 | Beat +60.8% |
| Mar 2026 | -0.07 | -0.08 | Beat +14.1% |
| Dec 2025 | -0.09 | -0.09 | Beat +4.5% |
| Sep 2025 | -0.03 | -0.11 | Beat +71.8% |
Adjusted (non-GAAP) EPS of -$0.03 versus the -$0.08 analyst consensus — a +60.8% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was -$0.08.
2 reported segments · SEC XBRL
Segment revenue totals $234.07M, which is the $234.07M of consolidated revenue on the income statement. The profit column adds up to the consolidated figure as well.
Profit above is reported as gross profit, the measure RKLB itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Revenue growth was overwhelmingly driven by space systems, which benefited from spacecraft manufacturing and recently acquired businesses, while launch services revenue declined despite a higher launch count due to revenue recognition timing on over-time HASTE missions.
Source: 10-Q Item 2 MD&A
Neutron qualification testing remains ongoing, with first-flight hardware integration underway. The company targets delivery to the launch pad in Q4 2026, though the exact launch timing depends on critical tests later this year and the window for a year-end launch is narrowing.
Source: 10-Q Item 2 MD&A
Backlog increased to $2,355.9 million as of June 30, 2026, up from $1,847.3 million at year-end 2025, driven by continued bookings and backlog added through acquisitions, indicating robust future demand.
Source: 10-Q Item 2 MD&A
On June 28, 2026, Rocket Lab entered into a definitive agreement to acquire Iridium Communications for $8.0 billion in enterprise value, expected to close in 2027 subject to regulatory and stockholder approvals, funded partly by a $3.6 billion bridge facility.
Source: 10-Q Item 2 MD&A
As of June 30, 2026, cash and cash equivalents stood at $2.1 billion, supplemented by $258.1 million in marketable securities, positioning the company to fund ongoing operations and the pending Iridium transaction's cash requirements.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 5 high, 0 medium, 0 low
The completion of the Iridium acquisition is subject to numerous conditions, including stockholder approval, regulatory approvals, and no material adverse effects. Failure to satisfy these could delay or prevent the deal, potentially causing Rocket Lab to miss expected benefits.
Source: 10-Q Item 1A Risk Factors
Rocket Lab has secured committed bridge financing for the $3.6 billion cash portion, but if permanent financing is not available on favorable terms, the company may face increased costs or forced equity issuance. The obligation to close is not conditional on financing, adding to the risk.
Source: 10-Q Item 1A Risk Factors
The combined company will incur substantial debt, which could limit operational flexibility, reduce funds for growth programs like Neutron, and increase vulnerability to interest rate changes and economic downturns.
Source: 10-Q Item 1A Risk Factors
The transaction requires antitrust clearance under the HSR Act, FCC consent, and foreign investment approvals. Regulators may impose conditions or delays, potentially affecting the combined company's operations or increasing costs.
Source: 10-Q Item 1A Risk Factors
Integrating Iridium's subscription-based satellite services with Rocket Lab's project-based launch and space systems business may be more difficult, costly, or time-consuming than expected, potentially preventing realization of anticipated synergies.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $M | 234.07 $M | 144.50 $M | +61.99% |
Cost of Revenue $M | 149.49 $M | 98.11 $M | +52.37% |
Gross Profit $M | 84.58 $M | 46.39 $M | +82.32% |
Operating Income $M | -57.51 $M | -59.64 $M | +3.56% |
Net Income $M | -49.26 $M | -66.41 $M | +25.83% |
EPS (Basic) $ | -0.08 $ | -0.13 $ | +38.46% |
EPS (Diluted) $ | -0.08 $ | -0.13 $ | +38.46% |
R&D Expense $M | 82.43 $M | 66.13 $M | +24.64% |
SG&A Expense $M | 59.66 $M | 39.89 $M | +49.55% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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%.
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%.