Rocket Lab (RKLB) reported revenue of $234.1M for the second quarter ended June 30, 2026, up 62.0% from the year-ago quarter, but it still lost money and burned cash. The company is a leading example of "vertical integration" in space, building its own rockets, spacecraft and components. The stock closed at $53.82 on Oct. 26, 2026, with the next earnings report due Nov. 9, 2026.
Key facts
- Oct. 26, 2026: RKLB's latest quote was $53.82, up 2.32% on the day. The 52-week range is $37.57 to $151. Market cap is $32.21B.
- Aug. 10, 2026: Rocket Lab reported Q2 FY2026 (quarter ended June 30, 2026) revenue of $234.1M against an analyst estimate of $231.6M. Diluted EPS (earnings per share) was -$0.08 against an estimate of -$0.05832.
- June 30, 2026: The balance sheet held $2.30B in cash and short-term investments against $133.7M in total debt.
- Q2 FY2026: Free cash flow was -$110.1M, meaning the business spent more cash than it generated.
- Nov. 9, 2026: The next earnings date. Analysts estimate revenue of $257.2M and EPS of -$0.06742.
What happened
The theme. Most space companies do one thing: launch rockets, build satellites or sell data. Rocket Lab is trying to do several at once. It sells launches, builds spacecraft, and makes the parts inside them, such as solar panels and other components. The bet is that owning more of the chain captures more profit per mission and makes the company harder to replace. The cost is heavy spending on factories and development before the payoff shows up.
The example. In the quarter ended June 30, 2026, Rocket Lab's revenue beat the analyst estimate by a small margin, while the per-share loss was wider than analysts expected. The net loss narrowed from a year earlier, and the operating loss was slightly smaller. In Q1 FY2026 (ended March 31, 2026), the company's product revenue was $127.5M and service revenue was $72.9M. Product revenue covers hardware such as spacecraft and components. Service revenue covers things like launches. So hardware is the larger part of the business.
Headlines this week focused on Neutron, Rocket Lab's larger, reusable rocket. Press coverage says its debut slipped because of voids found in a carbon-composite tank dome. The company's own words were not provided to us, so treat that as press reporting. Neutron is the piece that would move Rocket Lab into the heavier-lift market, so timing matters to the story.
The five-quarter trend.
| Quarter (ended) | Revenue | Gross margin | Operating margin | Free cash flow | |---|---|---|---|---| | Q2 FY2025 (June 30, 2025) | $144.5M | 32.1% | -41.3% | -$55.3M | | Q3 FY2025 (Sept. 30, 2025) | $155.1M | 37.0% | -38.0% | -$69.4M | | Q4 FY2025 (Dec. 31, 2025) | $179.7M | 38.0% | -28.4% | -$114.2M | | Q1 FY2026 (Mar. 31, 2026) | $200.3M | 38.2% | -27.9% | -$77.4M | | Q2 FY2026 (June 30, 2026) | $234.1M | 36.1% | -24.6% | -$110.1M |
What changed: revenue rose in every quarter shown, and operating margin (operating profit as a share of sales) improved steadily, reaching -24.6%. But gross margin, the share left after direct costs, slipped to 36.1% from 38.2% in the prior quarter. Cash burn also remains large. Operating cash flow in Q2 FY2026 was -$84.1M, with capital spending of $26.0M on top. The company paid no dividends and did no buybacks.
Why it matters for investors
Growth is real, profit is not yet. Trailing-12-month net margin is -21.5%. The trailing price/earnings ratio of -194.37 is negative because earnings are negative, so it is not a usable valuation signal. Price/sales is 41.88, meaning investors pay a very high price for each dollar of annual sales. That is a bet on much larger future revenue.
The balance sheet gives time. With $2.30B in cash and short-term investments and $133.7M of debt, Rocket Lab has net cash (more cash than debt). Debt/equity is 0.04. The Altman Z-score, a bankruptcy-risk gauge where higher is safer, is 28.14. But the Piotroski score, a 0-to-9 check of financial health, is only 3, reflecting losses and negative cash flow.
Versus peers. Rocket Lab is much larger than other listed space names, and its losses are smaller relative to sales:
| Company | Market cap | Net margin | |---|---|---| | Rocket Lab (RKLB) | $32.21B | -21.5% | | Planet Labs (PL) | $4.68B | -95.1% | | Firefly Aerospace (FLY) | $3.06B | -126.6% | | Redwire (RDW) | $2.08B | -57.3% | | Virgin Galactic (SPCE) | $329.1M | -23867.4% |
So the market treats Rocket Lab as the sector's higher-quality operator, and it prices it that way.
Analysts are more optimistic than the stock. Of 21 ratings, 16 are Buy, 4 Hold and 1 Sell, and the consensus is "Buy." Analysts' price targets average $105.17, with a median of $108.50, a high of $132.00 and a low of $80.00, all above the $53.82 quote. Targets are opinions, not forecasts we endorse. Recent actions in October 2026 from Citizens, TD Cowen, KeyBanc and Cantor Fitzgerald all maintained positive ratings.
Stock Expert AI's MoonshotScore is 28 (Weak). The pillars, scored against the sector, show a lopsided picture: growth 58 (the strongest), safety 42, momentum 30, quality 23 and valuation 21. In plain terms, our data agrees that sales growth is the strength, while profitability, price trend and price relative to fundamentals are weak.
What could go wrong.
- Neutron timing. Further delays would push back the heavier-lift revenue the valuation leans on.
- Cash burn. Free cash flow was negative in all five quarters shown, and the cushion, while large, is finite.
- Valuation. A high price/sales ratio leaves little room for disappointment. FMP's discounted cash flow model, which values a company on projected cash, returns -$45.70 per share; that mostly reflects current losses, and such models are sensitive to assumptions.
- Insiders. Among the 30 most recent insider filings, those in the last 90 days show 24 sales and no open-market purchases. Sales can have many personal reasons, but there is no insider buying to offset them.
- Volatility. The 52-week range of $37.57 to $151 shows how far sentiment has swung.
What to watch next
1. Nov. 9, 2026 earnings. Does revenue meet the $257.2M estimate, and does the loss land near -$0.06742 per share? 2. Gross margin. Does it recover from 36.1%, or does it keep drifting lower as the mix changes? 3. Free cash flow. Whether quarterly burn narrows from -$110.1M. 4. Neutron. Any new timeline and what the company says about the tank dome issue. 5. Long-range estimates. Analysts currently expect revenue of $542.8M for the period ending March 30, 2029, and $560.6M for the period ending June 30, 2029. Only two analysts provide EPS estimates for those periods, and both are 0.00, so these are thin.
Frequently asked questions
Q: Is Rocket Lab profitable?
No. In the quarter ended June 30, 2026, it reported a net loss of $49.3M and diluted EPS of -$0.08. Operating margin improved over five quarters to -24.6%, but free cash flow was still -$110.1M.Q: Why does the Neutron delay matter?
Neutron is Rocket Lab's planned larger, reusable rocket, meant to open a bigger launch market. According to press coverage, its debut slipped because of voids in a carbon-composite tank dome. A longer delay would push back revenue that analysts and investors are counting on.Q: How does Rocket Lab compare with other space stocks?
It has the largest market cap among the peers listed here ($32.21B) and a smaller trailing net margin loss (-21.5%) than Planet Labs (-95.1%), Firefly (-126.6%) and Redwire (-57.3%). Stock Expert AI's MoonshotScore of 28 (Weak) still flags weak quality, valuation and momentum. This article is information, not investment advice.This is educational content, not investment advice. Past performance does not guarantee future results.