FY2025 revenue grew 38% and gross margin improved, but the company still produced operating losses and negative free cash flow. Growing backlog is positive; Neutron development costs and new equity issuance sit at the centre of financial risk.
Rocket Lab — what does it do?
Rocket Lab has two main businesses: Electron/HASTE launch services and Space Systems, including satellites, components and spacecraft manufacturing. The medium-lift Neutron rocket is important to future scale but remains in development.
What do the financial results show?
Revenue increased from $436.2m to $601.8m and gross profit reached $207.2m. Operating loss was $228.8m, net loss $198.2m and operating cash outflow $165.5m. Adding $156.3m of investment leaves free cash flow clearly negative.
How should the balance sheet and cash be read?
2025 financing strengthened liquidity, but much of it came from $1.12bn of new share issuance. Year-end common shares outstanding increased about 7.8%. Financial runway and shareholder dilution must be read together.
Critical combinations
- Revenue growth + expanding gross profit
- Launch + space-systems diversification
- Growing backlog provides future visibility
- Negative operating and free cash flow
- Neutron schedule, cost and execution risk
- New equity issuance and dilution
What matters next?
The Q2 2026 release reported $234m of revenue and $2.36bn of backlog. Neutron timing, financing of the Iridium transaction and backlog conversion are the next tests; they are not presented as causes of FY2025 results.
Growth is strong, but the company is not yet mature enough to fund investment from operating cash. A long-term assessment should require margins, cash burn and per-share value to improve together. This is not investment advice.
Where the figures come from
- Rocket Lab FY2025 Form 10-K, SEC — Primary period ended 31 December 2025.
- Rocket Lab Q2 2026 results — Newer backlog and operating context.