Rocket Lab Sales Climb 73% — Its Net Loss Widens Even With Positive Operating Cash
Orders rose 52% from the second quarter, while Neutron booked more than $515 million in contracts ahead of its planned debut.
Rocket Lab, which builds rockets, spacecraft and spacecraft components, increased third-quarter sales 73% to $268 million, but its net loss widened to $79.7 million from $18.3 million a year earlier. Monday's earnings release also put operating cash flow at a positive $7.2 million, separating the quarter's cash performance from its accounting loss.
The Tax Comparison Matters
Sales were $34 million higher than in the second quarter. Product revenue reached $197.5 million, compared with $104 million a year earlier; services brought in $70.3 million, against $51 million.
The loss amounted to $0.12 per share, versus $0.03 a year earlier. Rocket Lab recorded a $27.3 million charge for extinguishing debt, while the tax comparison also changed sharply: a $3.5 million tax expense replaced the previous year's $41.1 million benefit.
At the operating level, the loss widened to $79.2 million from $59 million. Operating expenses reached $169.3 million, against $116.3 million, including research and development spending of $98.4 million, up from $70.7 million.
Rocket Lab's adjusted operating loss narrowed to $27.4 million from $33.2 million. That measure excludes items including stock-based pay, amortization and transaction costs. Adjusted gross margin fell to 38.4% from 41.9%.
The positive quarterly operating cash flow did not erase the longer-period cash outflow. For the first nine months, operations used $127.3 million, compared with $101 million a year earlier.
117 Launches On Order
Unfilled orders totaled approximately $3.6 billion, up 52% from the second quarter. Approximately $1 billion of new launch contracts across Electron, HASTE and Neutron brought the booked launch total to 117; space systems signed another $470 million in contracts during the quarter.
Founder and CEO Sir Peter Beck credited customers buying across the company's businesses, sometimes for one mission: “every part of our business is growing as a result.” Rocket Lab sells launch services alongside spacecraft manufacturing, components and on-orbit management.
Neutron secured more than $515 million in launch contracts from constellation operators during the third quarter, bringing its booked missions to 16. The company said tightening industry launch capacity helped lift the base price for several missions to $70 million. Those orders precede the rocket's first flight: Rocket Lab moved the debut to 2027 in its October 14 update, and now targets no earlier than that year.
Rocket Lab had 12 spacecraft operating in orbit: eight for Globalstar's direct-to-device constellation, twin NASA Mars-science spacecraft, the United States Space Force's VICTUS HAZE mission and a spacecraft for Viasat's NASA Communications Services Depot. More than 55 additional spacecraft were in development or construction for customers including NASA, the Space Development Agency, the Space Force and commercial constellation operators.
Iridium Funding, Then Higher Sales
Iridium Communications shareholders approved the pending acquisition. The financing was already in place: in September, Rocket Lab completed a $1.944 billion share offering that, alongside available liquidity, fully funded the cash consideration. Iridium's lenders also approved keeping its credit facility after the transaction. Rocket Lab expects closing in mid-2027.
For the fourth quarter, Rocket Lab forecasts revenue of $270 million to $290 million. It expects gross profit to represent 34% to 36% of revenue under standard accounting, or 39% to 41% after adjustments.
Management expects operating expenses of $162 million to $168 million under standard accounting, versus $136 million to $142 million on its adjusted measure. Expected stock-based pay is $17 million to $19 million.
Rocket Lab forecasts a fourth-quarter adjusted loss before interest, taxes, depreciation and amortization of $14 million to $20 million, compared with $18 million in the third quarter. More sales and a larger order book still leave the company forecasting a loss on that measure.
Sources
- 8-K Filing — Rocket Lab Corp (RKLB) — SEC EDGAR
- Exhibit rklb-11092026ex991.htm — Rocket Lab Corp 8-K exhibit — SEC EDGAR
- Rocket Lab Announces Third Quarter 2026 Financial Results: Posts Record Revenue, $1.2 Billion or 52% Sequential Quarterly Backlog Growth, Positive GAAP Operating Cash Flow, and Guides to Record Revenue and Gross Margin Expansion in Q4 2026 — Yahoo Finance
- Rocket Lab shares jump 11% ahead of crucial result - NZ Herald — nzherald.co.nz
- SpaceX, Rocket Lab blast higher as NASA hands out $10 billion in Moon Base awards — Yahoo Finance
- Rocket Lab Stock Rebounds Into Earnings: Q3 Still Needs to Deliver — benzinga.com
- Rocket Lab Lands Over $515M in Neutron Launch Deals from — globenewswire.com
- 8-K filed 2026-10-14 — Rocket Lab Corp (earlier disclosure) — SEC EDGAR
- 8-K filed 2026-09-15 — Rocket Lab Corp (earlier disclosure) — SEC EDGAR
