Rocket Lab USA (RKLB) Q3 2026 Earnings Report

The call was strongly positive overall. Rocket Lab reported record revenue, major backlog expansion, strong Space Systems and launch demand, improved liquidity, better-than-guided gross margins and substantial progress toward the Iridium acquisition. The principal challenges were the Neutron first-launch delay, elevated development spending, ongoing negative free cash flow, transaction costs, and near-term margin and Space Systems mix pressure. Management remained confident in demand, pricing, production capacity and the long-term growth path.

Rocket Lab’s near $1 billion 2026 full year guide includes projected 2026 GAAP gross margin in the 35% range and non-GAAP margins in the 40s; for Q4 2026, it expects revenue between $270 million and $290 million, GAAP gross margin between 34% to 36%, non-GAAP gross margin between 39% to 41%, GAAP operating expenses between $162 million and $168 million, non-GAAP operating expenses between $136 million and $142 million, net interest income of $45 million, adjusted EBITDA loss between $14 million and $20 million, approximately 681 million basic weighted average common shares outstanding, and negative non-GAAP free cash flow to remain at elevated levels. Approximately 32.9% of current backlog is expected to convert into revenue within the next 12 months. Neutron’s first launch timeline shifted to 2027, with no quarter provided; Space Systems’ longer-term CAGR remains 20% or so, roughly 25% of total small dedicated launches could be HASTE next year, and adjusted EBITDA is expected to turn positive within 6 months of that first successful test flight, with cash flow to follow.