Record Quarterly Revenue
Q1 revenue of $200.3M, the first quarter above $200M, representing +63.5% year-over-year growth and ~+12% sequential growth; Q2 guidance is $225M–$240M (≈+16% QoQ at midpoint).
Rocket Lab USA
· RKLB
May 7th, 2026
Summary
- Earnings Call Date:
- 2026-05-07
- Change Since:
- +8.69%
- Next Earnings Date:
- 2026-08-06
Earnings Call Sentiment
PositiveThe call conveyed strong operational and commercial momentum — record revenue, margins, backlog, cash and a flurry of strategic bookings, product rollouts and acquisitions that materially expand vertical integration and addressable markets. Near-term headwinds include launch-quarter lumpiness, margin mix pressure from large Space Systems contracts and continued cash burn and execution risk tied to Neutron development and reusability. On balance, the positive indicators (large bookings, liquidity, margin outperformance, product/production progress and M&A) materially outweigh the manageable near-term lowlights and execution risks.
Company Guidance
For Q2 2026 Rocket Lab guided revenue of $225 million–$240 million (midpoint ≈ 16% quarter‑over‑quarter growth), GAAP gross margin of 33%–35% and non‑GAAP gross margin of 38%–40%, GAAP operating expenses of $138 million–$144 million and non‑GAAP operating expenses of $120 million–$126 million, GAAP and non‑GAAP net interest income of $12.5 million, an adjusted EBITDA loss of $20 million–$26 million, and basic weighted average shares outstanding of ~629 million (including ~46 million convertible preferred); management noted GAAP guidance excludes any to‑be‑determined purchase‑price‑allocation and stock‑based‑comp impacts from recent/announced acquisitions and reiterated that negative non‑GAAP free cash flow is expected to remain elevated into the fourth quarter as Neutron development and scaling continues (for context Q1 was $200.3M revenue, 38.2% GAAP gross margin / 43% non‑GAAP, $1.48B cash and ~$2.2B backlog with ~36% of backlog expected to convert to revenue in the next 12 months).
Strong Gross Margins
GAAP gross margin of 38.2% (above prior guidance 34%–36%) and non‑GAAP gross margin of 43% (above guidance 39%–41%), with gross margin outperformance driven by solar products and favorable launch absorption.
Robust Backlog and Bookings
Total backlog approximately $2.2B, up ~20% sequentially and +108% year-over-year; launch backlog ~41.5% of total, Space Systems ~58.5%. Booked 31 Electron/HASTE missions and 5 Neutron contracts in Q1 (most launches signed in any quarter) and >70 launches now in launch backlog.
Record Liquidity Position
Ended Q1 with ~$1.48B cash and equivalents and access to >$2B total liquidity (including ATM proceeds of $450.4M in Q1, additional $24M in April, collateralized forward and capped call arrangements and convertible-related proceeds).
Major Defense and Program Wins
Selected for Space-Based Interceptor (SBI) under Golden Dome with Raytheon; $190M 20-launch HASTE order (largest single order within that program); confirmed multi-launch Neutron contract (5 Neutron flights + 3 Electron flights) — largest contract in company history.
Vertical Integration and Strategic M&A
Completed Mynaric acquisition (establishing European footprint), entered definitive agreement to acquire Motive Space Systems (robotics/mechanisms), and closed several other strategic acquisitions to bring optics, propulsion and subsystems in-house to support scale and cost control.
Product & Manufacturing Progress — Electric Propulsion and Neutron
Unveiled 'GA' electric propulsion thruster with 200-unit production line and initial units delivered; Neutron development progress includes Stage 1 tank refinements, AFP-made components on the production floor, cleared stage separation tests, Archimedes engine hot-fires, reusable fairing TPS integration and landing barge buildout — first launch targeted later this year.
Improving Profitability Metrics vs Guidance
Adjusted EBITDA loss of $11.8M, significantly better than guidance of -$21M to -$27M; GAAP EPS loss improved to $0.07 from $0.09 prior quarter; non-GAAP free cash flow use improved to -$77.4M from -$114.2M.
Operational Momentum
8 missions already launched this year; on track to beat last year's launch record and to achieve the company's 100th launch later in the year; Electron factory capacity designed for ~52 launches/year (modest capex to scale).
Operator
Good day, and thank you for standing by. Welcome to the Rocket Lab Corporation Q1 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Murielle Baker. Please go ahead.
Murielle Baker
Thank you. Hello, and welcome to today's conference call to discuss Rocket Lab's First Quarter 2026 Financial Results, Business highlights and other updates. Before we begin the call, I'd like to remind you that our remarks may contain forward-looking statements that relate to the future performance of the company, and these statements are intended to qualify for the safe harbor protection from liability established by the Private Securities Litigation Reform Act. Any such statements are not guarantees of future performance and factors that could influence our results are highlighted in today's press release and others are contained in our filings with the Securities and Exchange Commission. Such statements are based upon information available to the company as of the date hereof and are subject to change for future developments. Except as required by law, the company does not undertake any obligation to update these statements. Our remarks and press release today also contain non-GAAP financial measures within the meaning of Regulation G enacted by the SEC. Included in such release and our supplemental materials are reconciliations of these historical non-GAAP financial measures to the comparable financial measures calculated in accordance with GAAP.
This call is also being webcast with a suppor...
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