Rocket Lab (NASDAQ:RKLB) reported record second-quarter 2026 revenue of $234 million, up 62% from a year earlier and 16.8% sequentially, as the company expanded its Space Systems business, added major government contracts and continued development of its Neutron medium-lift rocket.
Founder and Chief Executive Officer Peter Beck said the company signed more than $1 billion in new contracts across the second quarter and the period after quarter-end. Rocket Lab ended the quarter with $2.36 billion in backlog, split roughly 40% in Launch Services and 60% in Space Systems.
Space Systems Wins and Iridium Plans
Rocket Lab highlighted a $397 million Space Force contract to build and launch multiple Flatellite spacecraft for the Space-Based Airborne Moving Target Indicator program. The program is intended to establish a satellite network capable of tracking aircraft, missiles and airborne threats globally. Neutron is slated to launch the mission.
The company also signed two contracts totaling more than $160 million to build three geostationary satellites, including a prime contract with Space Systems Command for two satellites supporting space-domain awareness. Beck said the satellites will incorporate Heimdall payloads from GEOST, a company Rocket Lab previously acquired.
Rocket Lab also closed its acquisitions of Mynaric and Motiv during the quarter and announced its proposed acquisition of Iridium Communications. Beck described Iridium as the company’s entry point into space applications, adding an operational 66-satellite constellation, more than 2.5 million subscribers and over $870 million in annual revenue over the past year.
The proposed transaction, which is expected to close in mid-2027 pending shareholder and regulatory approvals, would combine Rocket Lab’s launch and satellite-manufacturing operations with Iridium’s communications network and spectrum holdings. Beck said the company sees growth opportunities in internet of things, direct-to-device services, positioning, navigation and timing, defense, aviation and marine safety.
During the question-and-answer session, Beck said Rocket Lab intends to focus on growing the Iridium business and expanding its capabilities, while noting that the company was still early in planning for any future constellation. He said Iridium’s L-band spectrum provides capabilities distinct from broadband-oriented spectrum.
Launch Activity, HASTE Contract and Neutron Development
Rocket Lab completed 13 Electron and HASTE launches year to date with 100% mission success, Beck said. Its launch backlog rose to more than 90 launches, the company’s highest level to date.
Among new launch agreements, the company secured a $266 million Space Force contract for up to 18 suborbital missile-defense missions using HASTE, its hypersonic test vehicle. Beck said the award was Rocket Lab’s largest launch contract to date and that most missions are expected to fly from a new Kodiak, Alaska, location.
The Alaska launch pads will use Rocket Lab’s GHOST containerized deployable launch-site technology. Chief Financial Officer Adam Spice said the HASTE pricing profile should remain consistent with the company’s existing HASTE business, while the broader contract includes infrastructure funding and operational elements in addition to launches.
Rocket Lab also reported a rapid-response milestone on the Space Force’s VICTUS HAZE mission. Beck said the company launched Electron within 16 hours and 42 minutes of notice, commissioned the spacecraft in 38 hours, and completed tracking and imaging of a non-cooperative satellite in less than 59 hours.
On Neutron, Rocket Lab said flight hardware is moving toward final assembly and integration at Launch Complex 3 in Virginia. The company continues to target delivery of the vehicle to the pad in the fourth quarter of 2026, though Beck said the window for an end-of-year launch was narrowing. The company has completed more than 400 hot fires across its Archimedes first-stage and vacuum engines.
Management said its priority is not only the first Neutron flight, but also reaching sustained launch cadence. Beck reiterated a “one-three-five” initial launch ramp and said reusability will be central to scaling the vehicle. Rocket Lab has already signed dedicated Neutron missions for the Space Force’s moving-target program and for Kepler Communications.
Financial Results and Outlook
Space Systems revenue reached $189.5 million, increasing 38.6% sequentially, driven primarily by satellite manufacturing and an initial contribution from Mynaric. Launch Services revenue was $44.6 million, down 30% sequentially despite a similar number of launches, reflecting the mix between point-in-time Electron revenue recognition and over-time HASTE revenue recognition.
- GAAP gross margin was 36.1%, above the company’s 33% to 35% guidance range.
- Non-GAAP gross margin was 41.5%, above prior guidance of 38% to 40%.
- GAAP operating expenses were $142.1 million, while non-GAAP operating expenses were $115.7 million.
- GAAP net loss per share was $0.08, compared with a $0.07 loss in the first quarter.
- Adjusted EBITDA loss was $8.8 million, better than the company’s projected $20 million to $26 million loss.
- Non-GAAP free cash flow was negative $110.1 million, compared with negative $77.4 million in the prior quarter.
Rocket Lab ended the quarter with roughly $2.4 billion in cash equivalents, restricted cash and marketable securities. Liquidity increased following $1.08 billion in proceeds from the company’s at-the-market equity program, which was subsequently terminated. Spice said the funds are intended to support acquisitions, including the planned Iridium transaction, as well as corporate spending and working capital.
For the third quarter, Rocket Lab forecast revenue of $250 million to $265 million, representing 10% sequential growth at the midpoint. It expects GAAP gross margin of 29% to 31%, non-GAAP gross margin of 35% to 37%, and an adjusted EBITDA loss of $17 million to $23 million.
Spice said cash consumption is expected to remain elevated as Rocket Lab invests in Neutron development, production scaling, launch infrastructure and additional vehicle hardware. He said the company expects adjusted EBITDA profitability in the quarter following a successful Neutron test flight, while cash-flow positivity would likely follow 18 to 24 months later on a standalone basis.
About Rocket Lab (NASDAQ:RKLB)
Rocket Lab is an aerospace company that provides launch services, spacecraft, and space systems for commercial and government customers. The company’s primary launch vehicle is Electron, a small-lift orbital rocket designed to deploy small satellites and rideshare payloads to low Earth orbit. Rocket Lab also develops and manufactures the Rutherford engine, noted for its electric-pump-fed design and additive-manufactured components, which powers Electron and supports the company’s propulsion capabilities.
