Rocket Lab Announces Third Quarter 2026 Financial Results
Rocket Lab Corp (RKLB) filed an SEC Form 8-K — Results of Operations and Financial Condition. MEDIA RELEASE Exhibit 99.1 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 Long Beach, C
How this was made
The 30-second read
Why it matters
The company disclosed record quarterly revenue and backlog, plus explicit Q4 2026 revenue and gross margin ranges, which can drive repricing of execution and demand expectations.
Market read
Traders can update positioning ahead of the investor call based on the new Q4 revenue and gross margin ranges and the scale of backlog growth.
What to watch
GAAP operating cash flow is positive but modest, and adjusted EBITDA remains an expected loss in Q4, which can cap upside if margins or execution slip.
Rocket Lab reports record Q3 2026 revenue of $267,834 thousand (up 73% year-on-year), backlog of about $3.6 billion, and Q4 2026 revenue guidance of $270 million to $290 million, with GAAP net loss of $79,677 thousand
Revenue, backlog and Q4 revenue guidance are at record levels and operating cash flow was positive in Q3. Net loss widened sharply year-on-year, non-GAAP gross margin fell from 41.9% to 38.4%, and nine-month operating cash flow remained negative.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, Q3 2026GAAP | $267.8M | $34 million higher than Q2 2026 | 73% |
| Product revenues, Q3 2026GAAP | $197.5M | – | – |
| Service revenues, Q3 2026GAAP | $70.35M | – | – |
| Total cost of revenues, Q3 2026GAAP | $177.8M | – | – |
| Cost of product revenues, Q3 2026GAAP | $133.1M | – | – |
| Cost of service revenues, Q3 2026GAAP | $44.69M | – | – |
| Gross profit, Q3 2026GAAP | $90.07M | – | – |
| Non-GAAP gross profit, Q3 2026non-GAAP | $102.8M | – | – |
| Non-GAAP gross margin, Q3 2026non-GAAP | 38.4% | – | – |
| Research and development, net, Q3 2026GAAP | $98.39M | – | – |
| Non-GAAP research and development, net, Q3 2026non-GAAP | $92.74M | – | – |
| Selling, general and administrative, Q3 2026GAAP | $70.87M | – | – |
| Non-GAAP selling, general and administrative, Q3 2026non-GAAP | $37.43M | – | – |
| Total operating expenses, Q3 2026GAAP | $169.3M | – | – |
| Non-GAAP operating expenses, Q3 2026non-GAAP | $130.2M | – | – |
| Operating loss, Q3 2026GAAP | −$79.19M | – | – |
| Non-GAAP operating loss, Q3 2026non-GAAP | −$27.43M | – | – |
| Interest income, Q3 2026GAAP | $28.63M | – | – |
| Interest expense, Q3 2026GAAP | −$323K | – | – |
| Loss on extinguishment of debt, Q3 2026GAAP | −$27.26M | – | – |
| Total other income (expense), net, Q3 2026GAAP | $3.02M | – | – |
| Non-GAAP total other income (expense), net, Q3 2026non-GAAP | $28.27M | – | – |
| (Provision) benefit for income taxes, Q3 2026GAAP | −$3.50M | – | – |
| Net loss, Q3 2026GAAP | −$79.68M | – | – |
| Net loss per share, basic and diluted, Q3 2026GAAP | $(0.12) | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | −$18.05M | – | – |
| Total revenues, nine months 2026GAAP | $702.2M | – | – |
| Gross profit, nine months 2026GAAP | $251.1M | – | – |
| Non-GAAP gross margin, nine months 2026non-GAAP | 40.7% | – | – |
| Operating loss, nine months 2026GAAP | −$192.7M | – | – |
| Non-GAAP operating loss, nine months 2026non-GAAP | −$65.12M | – | – |
| Non-GAAP operating expenses, nine months 2026non-GAAP | $351.0M | – | – |
| Adjusted EBITDA, nine months 2026non-GAAP | −$38.63M | – | – |
| Net loss, nine months 2026GAAP | −$174.0M | – | – |
| Net loss per share, basic and diluted, nine months 2026GAAP | $(0.28) | – | – |
| Net cash used in operating activities, nine months 2026GAAP | −$127.3M | – | – |
| Positive GAAP operating cash flow, Q3 2026GAAP | $7.2M | – | – |
| Purchases of property, equipment and software, nine months 2026GAAP | −$84.19M | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $4.45B | – | – |
| Total assets, September 30, 2026GAAP | $6.57B | – | – |
| Total stockholders' equity, September 30, 2026GAAP | $5.80B | – | – |
| Total backlog, end of Q3 2026other | $3.57B | 52% increase since end of Q2 2026 | – |
| Total launch backlog, end of Q3 2026other | 117 launches | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Product revenuesThe filing gives no explanation for the product revenue line. Prior-year Q3 2026 comparison is $104,042 thousand. | $197,487 thousand (Q3 2026) | – | – |
| Service revenuesThe filing gives no explanation for the service revenue line. Prior-year Q3 comparison is $51,038 thousand. | $70,347 thousand (Q3 2026) | – | – |
Q4 2026 outlook
- Revenue$270 million to $290 million
- Gross marginGAAP gross margin 34% to 36%; non-GAAP gross margin 39% to 41%
- Operating expensesGAAP operating expenses $162 million to $168 million; non-GAAP operating expenses $136 million to $142 million
- NoteInterest income, net: $45 million
- NoteAdjusted EBITDA loss: $14 million to $20 million
- NoteBasic weighted average common shares outstanding: 681 million, including approximately 41 million of Series A Convertible Participating Preferred Shares
- NoteStock-based compensation: $17 million to $19 million
Capital returns
- No dividend or share repurchase program is described in the filing.
- Proceeds from ATM Equity Offerings for nine months 2026: $3,911,859 thousand (2025 nine months: $865,453 thousand). Issuance costs related to ATM Equity Offerings: $(36,695) thousand (2025: $(20,134) thousand).
- The filing states that Rocket Lab fully funded its pending acquisition of Iridium Communications through a completed ATM equity offering.
What drove it
- Company describes Q3 2026 as a record quarter, citing a record $268 million in revenue and a record backlog, and attributes the strength to its end-to-end space strategy, stating that every part of the business is growing as a result.
- Interest income rose to $28,627 thousand in Q3 2026 from $6,695 thousand in Q3 2025. The filing does not state the cause of this change.
- Transaction costs of $21,340 thousand were excluded from non-GAAP SG&A and operating expenses in Q3 2026 (Q3 2025: $5,118 thousand), per the reconciliation.
- Management said the Neutron launch contracts were signed at a base launch price of $70 million for several missions as industry launch capacity tightens. This is the company's own statement.
Concerns
- Net loss was $(79,677) thousand in Q3 2026 versus $(18,257) thousand in Q3 2025, and per-share loss was $(0.12) versus $(0.03).
- GAAP operating loss was $(79,189) thousand in Q3 2026 versus $(58,969) thousand a year earlier, while GAAP operating expenses rose to $169,260 thousand from $116,283 thousand.
- Non-GAAP gross margin was 38.4% in Q3 2026 against 41.9% in Q3 2025.
- Q3 2026 included a $27,259 thousand loss on extinguishment of debt, which the filing reports within other income (expense).
- Nine-month net cash used in operating activities was $(127,254) thousand. Only the Q3 figure of $7.2M in positive GAAP operating cash flow is reported as positive.
- The Neutron first launch is now targeted for no earlier than 2027 according to the filing.
What to watch
- Delivery against the Q4 2026 revenue guidance of $270 million to $290 million.
- Whether the GAAP gross margin guidance of 34% to 36% and non-GAAP gross margin guidance of 39% to 41% are achieved against the Q3 2026 non-GAAP gross margin of 38.4%.
- Completion of the pending Iridium Communications acquisition, which the filing says is funded and has shareholder and lender approvals.
- Conversion of the $3.57 billion backlog and the 117-launch backlog into recognized revenue.
- Progress of Neutron toward its first launch, now targeted for no earlier than 2027.
- Interest income of $45 million guided for Q4 2026 relative to the net loss profile.
Balance sheet and cash flow
- Cash and cash equivalents were $4,447,665 thousand at September 30, 2026, compared with $828,660 thousand at December 31, 2025. The filing does not print a prior-year-end comparison as a year-over-year figure.
- Convertible senior notes, net were $1,289 thousand at September 30, 2026, compared with $152,395 thousand at December 31, 2025.
- Long-term borrowings, net were $1,716 thousand at both dates.
- Total liabilities were $766,137 thousand at September 30, 2026, compared with $602,624 thousand at December 31, 2025.
- Contract liabilities were $423,580 thousand at September 30, 2026, compared with $195,438 thousand at December 31, 2025.
- Inventories were $280,885 thousand at September 30, 2026, compared with $158,407 thousand at December 31, 2025.
- Nine-month net cash used in operating activities was $(127,254) thousand (2025: $(100,990) thousand). Nine-month net cash provided by financing activities was $3,863,886 thousand (2025: $881,734 thousand).
- Nine-month cash paid for business combinations, net of acquired cash, was $(44,271) thousand (2025: $(132,441) thousand).
- Loss on extinguishment of debt of $27,259 thousand was recorded in Q3 2026, and payment of debt issuance and extinguishment costs was $(27,259) thousand for nine months 2026.
Analysis
Rocket Lab reported Q3 2026 total revenues of $267,834 thousand, which the company describes as a record and as a 73% increase year-on-year against $155,080 thousand in Q3 2025. Product revenues were $197,487 thousand (Q3 2025: $104,042 thousand) and service revenues were $70,347 thousand (Q3 2025: $51,038 thousand). The release states revenue was $34 million higher than Q2 2026, and the filing does not print the Q2 2026 line items. Gross profit was $90,071 thousand GAAP and $102,752 thousand non-GAAP. Non-GAAP gross margin was 38.4%, compared with 41.9% in Q3 2025, while nine-month non-GAAP gross margin rose to 40.7% from 37.7%.
Operating costs grew faster than the revenue line in the period. GAAP operating expenses were $169,260 thousand against $116,283 thousand a year earlier, and GAAP operating loss widened to $(79,189) thousand from $(58,969) thousand. Non-GAAP operating expenses were $130,177 thousand against $98,131 thousand. Transaction costs of $21,340 thousand were excluded from the non-GAAP measures. Below the operating line, interest income increased to $28,627 thousand from $6,695 thousand, while a $27,259 thousand loss on extinguishment of debt was recorded. The GAAP provision for income taxes was $(3,503) thousand, compared with a benefit of $41,091 thousand a year earlier. The net loss was $(79,677) thousand, or $(0.12) per share, against $(18,257) thousand, or $(0.03) per share. Adjusted EBITDA improved to $(18,047) thousand from $(26,275) thousand, and non-GAAP operating loss narrowed to $(27,425) thousand from $(33,152) thousand.
Cash generation is the least settled part of the report. Management reports positive GAAP operating cash flow of $7.2M for Q3 2026, but nine-month net cash used in operating activities was $(127,254) thousand, against $(100,990) thousand in the prior year period. Contract liabilities rose to $423,580 thousand from $195,438 thousand at December 31, 2025, and inventories rose to $280,885 thousand from $158,407 thousand. Cash and cash equivalents reached $4,447,665 thousand, up from $828,660 thousand at December 31, 2025, mainly following $3,911,859 thousand of nine-month ATM equity proceeds per the cash flow statement. Total stockholders' equity was $5,802,570 thousand. Nine-month capital expenditure on property, equipment and software was $(84,185) thousand.
Backlog is the central operating indicator in the release. The company reports a backlog of approximately $3.6 billion (stated as $3.57 billion in the CEO quote), a 52% increase since the end of Q2 2026, including nearly $1 billion of new launch contracts signed in Q3 and $470 million for Space Systems. The launch backlog stands at 117 launches, and the Neutron backlog at 16 missions, with first launch now targeted for no earlier than 2027. Q4 2026 guidance calls for revenue of $270 million to $290 million, GAAP gross margin of 34% to 36%, non-GAAP gross margin of 39% to 41%, GAAP operating expenses of $162 million to $168 million, and an adjusted EBITDA loss of $14 million to $20 million. The guidance implies a gross margin below the Q3 2026 non-GAAP level of 38.4% on a GAAP basis, but the filing presents the ranges without comparison to the prior period.
Management, verbatim
Q3 2026 was a defining quarter for Rocket Lab. We delivered a record $268 million in revenue ($34 million higher than Q2 2026) alongside a record backlog which has grown to $3.57 billion.
Sir Peter Beck, Founder and CEO
Our end-to-end space strategy is delivering exactly as designed: the world's most critical and ambitious missions increasingly rely on Rocket Lab for launch, spacecraft, and components, sometimes all on a single mission, and every part of our business is growing as a result.
Sir Peter Beck, Founder and CEO
Not in the filing
stated, not guessed- Prior-quarter (Q2 2026) values for revenue, product and service revenues, costs, gross profit, operating expenses, net loss and other lines; the release gives only a $34 million revenue difference.
- Year-over-year percentage changes for most line items; only the revenue change (73%) and non-GAAP gross margin comparisons are printed.
- GAAP gross margin for Q3 2026 and Q3 2025 as a percentage.
- Non-GAAP net loss per share and any non-GAAP EPS figure.
- Prior-year comparisons for balance sheet items (the filing compares to December 31, 2025, not to a prior-year period).
- Free cash flow and quarterly capital expenditure.
- Segment revenue breakdown beyond product and service revenues.
- Prior guidance, so vs_prior_guidance cannot be evaluated.
- Q3 2026 quarterly operating cash flow in dollar thousands (only the $7.2M figure is printed).
- Share price reaction and analyst consensus estimates, which are not in the filing.
- Tax rate guidance for Q4 2026.
- Iridium Communications transaction value and closing date.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Rocket Lab furnished its Q3 2026 operating update and provided Q4 2026 guidance in an SEC 8-K with an attached media release.
Ticker impact
Rocket Lab reported Q3 2026 results with record $268M revenue, $3.57B backlog, and issued Q4 2026 revenue and gross margin guidance.
Likely upward bias as investors price in stronger demand visibility and Q4 margin expectations.
The filing includes multiple decision-grade datapoints: record revenue, record backlog growth, positive GAAP operating cash flow, and explicit Q4 2026 revenue and gross margin ranges.
Market effects
Reinforces demand visibility for small-lift launch and space systems, potentially improving sentiment across commercial space infrastructure.
Limited direct regional read-through beyond US-listed space/defense supply chain sentiment.
Moderate, as launch capacity tightness and constellation contracting are globally relevant themes.
Counterpoint
Neutron launch timing is pushed to no earlier than 2027, so backlog growth may not translate into near-term revenue acceleration.
Key entities
- issuerRocket Lab Corporation
Nasdaq-listed space company reporting Q3 2026 results and providing Q4 2026 guidance.
- counterpartyIridium Communications
Pending acquisition referenced as fully funded via an ATM equity offering with lender and shareholder approvals.
