Key Stats for Rocket Lab Stock
- Pre-Market Price Change for Rocket Lab stock: 9.8%
- $RKLB Share Price as of Nov. 10: $51.90
- 52-Week High: $74
- $RKLB Stock Price Target: $60
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What Happened?
Rocket Lab (RKLB) stock is up almost 10% in pre-market after the company delivered its best quarter ever, posting $155 million in revenue—up 48% year-over-year—and securing a record 17 new Electron launch contracts in just three months.
Its net losses narrowed to $0.02 per share, an improvement of almost 74% year over year. Comparatively, Wall Street forecast Q3 revenue at $151.72 million with a net loss per share of $0.06.
Nearly all of those contracts came from international customers in Japan, Korea, and Europe, proving that Electron is becoming the preferred small launch vehicle globally, not just in the U.S.
Rocket Lab’s gross margin jumped to 37%, driven by improved operational efficiency and higher launch cadence.
The company has already completed 16 missions this year, matching last year’s full-year record, with another launch scheduled in the coming days to push the total to 17. CEO Peter Beck said he expects this pace to continue into 2026.
However, Rocket Lab delayed the first launch of its Neutron rocket to early 2026, pushing back the timeline by a few months. Beck stressed that the company is taking extra time to complete rigorous testing and qualification, sticking to the “Rocket Lab process” that made Electron the world’s most frequently launched small rocket.
He said the team won’t rush to the pad just to clear it—they want to make it to orbit on the first try.
Despite the delay, Rocket Lab stock remains one of the hottest names in the space sector. Shares are up 300% year-to-date, vastly outperforming the broader market.
It also raised Q4 revenue guidance to between $170 million and $180 million, representing 12.8% sequential growth at the midpoint.
Beyond launches, Rocket Lab is expanding aggressively and closed the $325 million acquisition of GEOs during the quarter, creating a new business unit focused on national security programs.
It’s also moving closer to acquiring laser communications company Mynaric, which would give Rocket Lab its first European foothold in Germany. To fund future deals, the company raised $469 million through an at-the-market equity offering, bringing total liquidity to over $1 billion.
On the Space Systems side, Rocket Lab is preparing to launch twin spacecraft for NASA’s ESCAPADE mission to Mars in the coming days.
It also cleared critical design review for its Space Development Agency (SDA) transport layer constellation, moving the program into spacecraft production.
However, the government shutdown has delayed timing on new SDA Tranche-3 awards, though existing contracts remain fully funded.
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What the Market Is Telling Us About Rocket Lab Stock
Rocket Lab stock is rising because investors believe the company is executing on its long-term vision to become an end-to-end space solutions provider.
The record backlog of 49 Electron launches on contract shows demand is accelerating, and the company’s ability to diversify internationally is a major win. Wall Street remains bullish, with most analysts keeping price targets slightly above current levels.
The Neutron delay is a disappointment, but Beck’s reasoning resonates with investors who’ve watched other space companies rush to launch and fail spectacularly.
Rocket Lab has a proven track record—Electron scaled faster than any commercial launch vehicle in history, and the company has maintained near-flawless reliability.
Beck pointed out that only three American commercial launch providers have launched to orbit more than once this year: SpaceX, ULA, and Rocket Lab.
Beck noted that Neutron’s development costs about $15 million per quarter, which the company can recoup four times over with a single launch.
CFO Adam Spice said Rocket Lab has spent roughly $360 million on Neutron through the end of 2025, above the original $250 million to $300 million estimate, but the team is approaching peak R&D spending and expects to shift costs from R&D to flight inventory soon.
The GEOs acquisition is already paying dividends and Beck said the deal has opened doors to intelligence community programs and elevated Rocket Lab’s standing in the national security space.
RKLB is now competing for larger, mission-critical contracts, including the lucrative SDA Tranche-3 transport layer constellation, which would be the largest contract in company history if awarded.
Rocket Lab’s Space Systems business continues to thrive, generating $114.2 million in revenue—up 16.7% sequentially.
The segment now represents 53% of total backlog, providing diversification beyond the often-lumpy launch business. Gross margins across the Space Systems portfolio are improving, with the solar business approaching 30% margins and other components hitting 60% to 70% margins.
That said, Rocket Lab stock is still trading at elevated valuations, and it remains unprofitable. Net loss for the quarter was $18.3 million, an improvement from the prior year, but adjusted EBITDA loss came in at $26.3 million.
The company expects negative free cash flow to remain elevated in the near term due to Neutron development and scaling production for SDA programs.
While existing SDA contracts are fully funded and payments continue to flow, the timing of new Tranche-3 awards has been delayed.
Looking ahead, Rocket Lab’s pipeline remains strong and it expects total backlog of $1.1 billion to convert roughly 57% into revenue over the next 12 months. Launch backlog now accounts for 47% of the total, with Space Systems making up 53%.
Rocket Lab has proven it can deliver reliable hardware, scale production, and win contracts across commercial and government markets.
If Rocket Lab can stick the landing on its first Neutron launch and continue ramping Electron cadence while winning major SDA contracts, the stock’s valuation could start to make more sense.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
