Rocket Lab Reports 32% Revenue Growth to $122.6 Million in Q1 2025

Rocket Lab USA, Inc. reported significant financial results for the first quarter of 2025, with total revenues reaching $122.6 million, a 32% increase from $92.8 million in the same period last year. This growth was primarily driven by a 45% rise in space systems revenue, which amounted to $87 million, largely due to increased spacecraft manufacturing. Launch services revenue also saw a modest increase of 9%, totaling $35.6 million, attributed to a higher launch cadence of five Electron missions compared to four in the previous year, despite a decrease in revenue per launch.

The company's operating loss widened to $59.2 million from $43.1 million year-over-year, reflecting a 43% increase in research and development expenses, which reached $55.1 million. This rise was mainly due to ongoing development of the Neutron launch vehicle and increased staffing costs. Selling, general, and administrative expenses also increased by 37% to $39.3 million, driven by higher personnel costs to support revenue growth. The net loss for the quarter was $60.6 million, or $0.12 per share, compared to a net loss of $44.3 million, or $0.09 per share, in the prior year.

In terms of operational metrics, Rocket Lab's backlog remained stable at approximately $1.067 billion as of March 31, 2025, with about 56% expected to be recognized within the next 12 months. The company continues to expand its customer base, with notable contracts including a 28% revenue contribution from government customers and 10% from Kinéis. The total employee headcount increased to support these operations, although specific figures were not disclosed.

Strategically, Rocket Lab has been active in enhancing its capabilities through acquisitions and product development. The company has made significant investments in its Neutron launch vehicle, which is designed to increase payload capacity and is expected to be a key player in the commercial and government launch markets. Additionally, Rocket Lab has entered into an At-The-Market (ATM) equity offering, generating $92.8 million in gross proceeds, which will support its ongoing initiatives and operational needs.

Looking ahead, Rocket Lab anticipates continued growth driven by its innovative launch services and space systems offerings. The company is focused on improving profit margins and scaling its operations, although it acknowledges potential challenges from market conditions and the need for ongoing investment in product development. The management remains optimistic about the future, emphasizing the importance of government and private sector investments in the space economy as a critical factor for its growth trajectory.