Rocket Lab Q1 revenue soars 64%, secures "Golden Dome" major contract, order backlog surpasses $2.2 billion | Earnings Report News

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Rocket Lab delivered a quarterly report that comprehensively exceeded expectations: Revenue surpassed $200 million for the first time and the company also announced it secured the largest launch contract in its history, along with an order from the Trump administration’s “Golden Dome” missile defense program. These two catalysts combined, demonstrating to the market that its commercial space business is rapidly expanding.

On May 7, Rocket Lab released its latest report showing that in Q1 of 2026, company revenue reached $200.3 million, up 63.5% year-on-year, surpassing analyst expectations of $189.6 million, with GAAP gross margin hitting a record high of 38.2%. Loss per share narrowed to 7 cents from 12 cents a year ago, with continued improvement in profitability. After the report, the company’s stock price surged nearly 7% after hours, bringing the year-to-date gain to about 13% and the cumulative gain over the past 12 months to more than 250%.

Meanwhile, on the same day as the report, the company announced several significant business developments: a record-breaking confidential customer launch contract, selection in the "Golden Dome" space-based interceptor program with Raytheon, a $30 million hypersonic flight agreement with Anduril Industries, and a plan to acquire robotics company Motiv Space Systems. Company’s total order backlog grew 20.2% quarter-on-quarter to $2.2 billion, far exceeding market expectations of $1.99 billion.

CEO Sir Peter Beck stated:

"This record contract sends a clear signal—a greater demand for launch capacity in the space industry, and it has to come from launch providers who can actually deliver."

The report also indicates that for Q2, the company gave revenue guidance of $225–240 million, with a midpoint around $232.5 million, well above Wall Street’s previous estimate of $205 million, and if achieved, will set another quarterly revenue record.

Revenue and Profit: Both Far Exceed Expectations

According to the report, of the $200.3 million total revenue in Q1, product revenue was $127.5 million, up 57.8% year-on-year; service revenue was $72.86 million, up 74.5% year-on-year, with faster growth in services, reflecting increased launch services and contract execution frequency.

Gross profit reached $76.49 million, exceeding Wall Street expectations of about $73 million, and almost doubling from $35.2 million a year ago.

GAAP gross margin was 38.2%; Non-GAAP gross margin (excluding amortization and stock compensation) soared to 43.0%, a nearly 10 percentage point jump from 33.4% a year ago, driven mainly by improved mass production capability and a higher share of high-value contracts.

Net loss for Q1 on a GAAP basis was $45.02 million, significantly narrowed from $60.62 million a year ago; adjusted EBITDA loss shrank to $11.75 million, a major improvement from $29.96 million in the previous year.

Operating expenses for Q1 totaled $132.5 million, up 40.2% year-on-year. R&D expenses were $80.51 million, up 46.1%, mainly for Neutron medium-lift rocket and Archimedes engine R&D; SG&A expenses were $51.95 million, up 32.1%, with M&A transaction costs and team expansion weighing in.

Largest Contract Ever: Neutron Demand Validated With Firm Pre-Flight Orders

On earnings day, Rocket Lab also announced its largest single launch contract ever. The buyer remains confidential; the contract covers five dedicated Neutron rocket launches and three dedicated Electron rocket launches, scheduled between 2026 and 2029.

The company did not disclose the contract’s exact value but confirmed it exceeded the previous record contract signed in March this year—which was $190 million—suggesting the new contract likely surpasses $200 million.

This quarter, the company signed 31 new Electron and HASTE contracts and 5 Neutron launch contracts, already surpassing all of 2025’s total contract signings—the explosive growth in demand is clear. There are currently 70 outstanding launch missions, with Q1 launches already exceeding all of 2025.

National Defense Expansion: “Golden Dome” and Hypersonics Both Landed

In the defense sector, Rocket Lab secured two landmark orders this quarter, further strengthening its strategic position in US national security.

First, in partnership with Raytheon, Rocket Lab was selected by the US Space Force to participate in the Space-Based Interceptor project, a core part of the Trump administration’s “Golden Dome for America” missile defense plan.

The project will employ Rocket Lab’s launch and satellite manufacturing capabilities, which the company views as a concentrated demonstration of its end-to-end space solutions. Once the project is underway, it will provide a significant and sustained stream of government revenue.

Second, defense tech unicorn Anduril Industries signed a $30 million agreement with Rocket Lab to use its HASTE vehicle for multiple hypersonic weapons test flights.

Neutron Rocket: Maiden Flight Delayed to Q4, Commercial Demand Already Locked In

The Neutron medium-lift rocket, the company's most important future growth engine, is now scheduled for its first flight in Q4 2026.

A first-stage tank failure in January caused this latest delay.

Neutron can deliver up to 15,000 kg to low Earth orbit, designed to directly compete with SpaceX’s Falcon 9, and has potential for satellite deployment, deep space exploration, and even manned flight.

Nonetheless, demand has already been validated in advance. Of the largest contract ever, Neutron accounts for five launches, with customers committing real capital before its maiden flight.

On the R&D front, the Archimedes engine is making steady progress, with advances in the second stage and reusable fairing systems. The company also released a new Gauss satellite electric thruster, further enriching its space systems product lineup.

Balance Sheet: Ample Cash, Accelerating M&A Integration

The report shows that as of March 31, 2026, the company held $1.2055 billion in cash and equivalents; combined with marketable securities, total liquidity surpassed $2 billion, up 45% from $828.7 million at the end of 2025—mainly due to about $446 million in net proceeds from ATM stock offerings this quarter. Convertible notes outstanding fell sharply from $152.4 million to $36.87 million, significantly reducing leverage risk.

Total assets expanded to $2.82 billion, up from $2.32 billion at 2025 year-end, with goodwill and intangibles of about $429 million, reflecting the consolidation effect of the Mynaric acquisition. Net cash outflow from operations was $50.33 million, narrowed slightly from $54.23 million a year ago, mainly due to increased accounts receivable and inventory buildup.

In terms of M&A, the company completed its acquisition of German laser optical communications company Mynaric AG this quarter, establishing “Rocket Lab Europe” as its first European base to strengthen its mass-supply capability for satellite components.

Meanwhile, the company signed the final agreement to acquire Motiv Space Systems, whose robotic technology has been validated on Mars missions; this acquisition will integrate robotics and core, high-value satellite components such as SADA solar array drive assemblies.

Q2 Guidance Surpasses Expectations Again

Looking to Q2, the company gave revenue guidance of $225–240 million, with a midpoint of $232.5 million, far ahead of Wall Street’s earlier forecast of $205 million.

GAAP gross margin guidance is 33%–35%, lower than Q1’s 38.2%, mainly due to increased amortization after Mynaric consolidation and adjustments in launch pacing;

Non-GAAP gross margin guidance is 38%–40%, with operating efficiency staying high. Adjusted EBITDA loss is expected at $20–26 million, with net interest income of about $12.5 million continuing to buffer earnings.

In April this year, Roth Capital raised Rocket Lab’s target price from $90 to $100 per share, maintained its “Buy” rating, and believes the company is in a window of strategic acceleration for both space technology and defense spending.

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