Rocket Lab Reports $123 Million in Q1 2025 Revenue, Marking 32% Year-Over-Year Growth and Strategic Momentum Across Launch and Space Systems
Rocket Lab USA, a globally recognized leader in launch services and space systems, has announced its financial results for the first quarter of fiscal year 2025, ending March 31. The company posted a revenue of $123 million, representing a 32% increase compared to the first quarter of 2024. This strong performance places the quarter at the top end of Rocket Lab’s previous guidance, reinforcing the company’s operational agility, growing customer base, and success in both commercial and defense segments of the space economy.
Sir Peter Beck, founder and CEO of Rocket Lab, underscored the company’s resilient performance in a statement accompanying the results. “Rocket Lab has delivered a strong first quarter performance, with wins across our launch and space systems divisions reflected in our near-record $123 million revenue,” said Beck. “We remain confident in our ability to execute and deliver another robust quarter ahead, with second-quarter revenue guidance between $130 million and $140 million. This demonstrates the strength of our increasingly diverse and vertically integrated business model, which continues to thrive amid a complex geopolitical and macroeconomic environment.”
As Rocket Lab continues to evolve its structure and strategy to support long-term growth and its expanding role in the defense sector, Beck also announced plans to implement a new holding company structure. This corporate reorganization is designed to better align Rocket Lab’s legal framework with its business objectives, particularly in serving U.S. national security interests.
“The new structure will enable more efficient management and risk oversight as we scale Rocket Lab’s operations, enter new markets, and expand our footprint, including into Europe,” Beck explained. “It’s a significant milestone that supports our continued progress across commercial, civil, and defense space domains.”
Launch Division Achieves Strategic Milestones in Government and Commercial Markets
During the first quarter of 2025 and in the weeks that followed, Rocket Lab’s launch business recorded several landmark achievements, reinforcing its status as a critical U.S. government partner and a go-to provider for commercial satellite deployment.
Neutron Rocket Selected for National Security Space Launch Program
Perhaps the most significant milestone of the quarter was Rocket Lab’s successful onboarding of its upcoming Neutron rocket to the U.S. Department of Defense’s National Security Space Launch (NSSL) Phase 3 Lane 1 program. This prestigious $5.6 billion initiative supports the deployment of high-priority national security payloads. With this inclusion, Rocket Lab becomes one of only five launch providers — and notably, the only publicly traded company — deemed eligible to launch these critical government missions.
As part of the NSSL onboarding, Rocket Lab was awarded a $5 million task order to perform a capabilities assessment. This will help demonstrate the company’s unique approach to mission assurance — a critical component in defense-oriented launch programs, where reliability and precision are paramount.
U.S. Air Force Contract for Experimental Neutron Mission
Rocket Lab further solidified its standing with the Department of Defense by securing a Neutron launch contract from the U.S. Air Force. The contract will support a rocket-based point-to-point transportation experiment, aimed at exploring rapid payload delivery capabilities for defense applications. The mission is scheduled for no earlier than 2026 and will be among the first to use Neutron’s novel architecture, designed for payload reusability and rapid deployment.
Five Electron Launches Successfully Completed
In parallel, the company’s workhorse small satellite launcher, Electron, had a busy and successful first quarter. Rocket Lab executed five Electron launches for three different commercial satellite constellation operators. This continued pace of activity maintains Electron’s title as the world’s most frequently launched small orbital rocket.
Electron is now the second most-frequently launched rocket in the United States and one of only two commercial U.S.-made rockets to have completed multiple orbital missions in 2025. The consistent cadence of launches underscores Rocket Lab’s production efficiency, mission reliability, and competitive edge in the global small launch market.
Expansion into Hypersonic Test Missions with HASTE
Rocket Lab’s HASTE (Hypersonic Accelerator Suborbital Test Electron) vehicle also gained traction during the quarter, as the company announced a new contract awarded by Kratos in support of the Department of Defense’s MACH-TB 2.0 program. This effort, valued at up to $1.45 billion, focuses on advancing hypersonic vehicle testing. The HASTE mission for MACH-TB 2.0 is set to launch from Rocket Lab’s Virginia-based Launch Complex 2 no earlier than Q1 2026 and represents the first full-scale flight test awarded under the new program.
In addition, Rocket Lab’s HASTE was pre-qualified for two major defense initiatives: the U.S. Air Force’s Enterprise-Wide Agile Acquisition Contract (EWAAC), a $46 billion framework for developing future military technologies, and the UK Ministry of Defence’s Hypersonic Technologies & Capability Development Framework (HTCDF), a roughly $1.3 billion (£1 billion) program. These selections not only demonstrate HASTE’s growing strategic relevance but also mark Rocket Lab’s first eligibility to offer launch services to the UK defense sector.
Space Systems Division Expands Capabilities and Global Reach
In addition to its accomplishments in launch services, Rocket Lab’s space systems business continued to expand rapidly, both through product innovation and planned strategic acquisitions.
Planned Acquisition of Mynaric to Expand European Presence
One of the most transformative announcements during Q1 was Rocket Lab’s intention to acquire Mynaric, a German-headquartered leader in optical communications technology. Specializing in laser terminals for air, space, and mobile applications, Mynaric serves both governmental and commercial customers across the globe.
If the deal is completed, Rocket Lab will significantly expand its footprint into the European space market. More importantly, it will gain in-house capability to scale the production of optical terminals — a growing need for both standalone satellites and large constellations. Rocket Lab also plans to integrate Mynaric’s advanced communication products into its own satellite platforms, enhancing data relay performance and secure communications in future missions.
Product Portfolio Expanded Across Power and Communication Systems
Rocket Lab also introduced new products aimed at standardizing and scaling space-grade power and communications subsystems. Among these new offerings are:
- STARRAY: A family of customizable solar arrays designed to meet the demanding power needs of small satellite missions. These arrays are optimized for performance, scalability, and integration flexibility.
- Frontier Radios: An expanded suite of reliable command and control radios for both Earth-orbiting and deep space missions, building on Rocket Lab’s track record in mission-critical communications.
- Satellite Software Platforms: Rocket Lab has begun offering next-generation software systems for constellation management, enabling more efficient operations, tasking, and monitoring across multi-satellite architectures.
Together, these developments position Rocket Lab not just as a launch provider but as a fully integrated spacecraft and mission systems provider — one capable of delivering end-to-end solutions for customers in commercial, civil, and defense sectors.
Second Quarter 2025 Outlook and Financial Guidance
Following a strong start to the year, Rocket Lab has issued guidance for the second quarter of 2025, indicating continued growth and financial discipline. The company expects:
- Revenue between $130 million and $140 million
- GAAP Gross Margins between 30% and 32%
- Non-GAAP Gross Margins between 34% and 36%
- GAAP Operating Expenses between $96 million and $98 million
- Non-GAAP Operating Expenses between $82 million and $84 million
- Net Interest Expense of approximately $3.1 million
- Adjusted EBITDA Loss between $28 million and $30 million
- Basic Weighted Average Shares Outstanding of approximately 514 million, including about 51 million shares of Series A Convertible Participating Preferred Stock
Rocket Lab noted that it does not provide reconciliations of forward-looking non-GAAP metrics to GAAP equivalents due to the unpredictability of certain expense components like stock-based compensation. That figure alone is anticipated to range between $13 million and $14 million in Q2 2025.
Corporate Reorganization to Support Long-Term Growth
As Rocket Lab continues to expand into new geographies and customer sectors — particularly within national security — the company announced it will implement a holding company structure to support growth and compliance with evolving regulatory frameworks.
The new parent entity, Rocket Lab Corporation, will replace Rocket Lab USA, Inc. as the Nasdaq-listed entity and will retain the same “RKLB” ticker symbol. Existing shares will automatically convert on a 1:1 basis, and trading is expected to continue uninterrupted. Rocket Lab’s leadership — including Sir Peter Beck and the current Board of Directors — will remain in their roles.
The reorganization will be carried out under Section 251(g) of the Delaware General Corporation Law and will not require a shareholder vote. Rocket Lab USA, Inc. will become a wholly owned subsidiary of Rocket Lab Corporation, continuing to operate its subsidiaries across the United States, New Zealand, Australia, and Canada.
The new structure is expected to take effect by June 1, 2025. As a result, the company will hold its annual shareholder meeting later this year, following the completion of the reorganization.
Investor Relations and Conference Call
Rocket Lab will host a conference call for investors today at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss Q1 2025 results and outlook for the second quarter. A live webcast, as well as a replay, will be available on the company’s Investor Relations site:
https://investors.rocketlabusa.com/events-and-presentations/events
Rocket Lab’s first quarter of 2025 reinforces its emerging role as a dominant force in both commercial and government space markets. With a solid financial foundation, strategic partnerships, new product launches, and expanded mission capabilities, the company is uniquely positioned to capture value in an increasingly space-dependent world. The planned acquisition of Mynaric, reorganization into a holding company, and anticipated contract wins in national security further enhance Rocket Lab’s trajectory toward long-term leadership in the global space economy.
